Sysco Corporation (SYY)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 64,236,000 | 62,370,000 | 56,315,600 | 41,941,100 | 42,991,600 |
| Payables | US$ in thousands | 6,290,000 | 6,025,000 | 5,752,960 | 4,884,780 | 3,447,060 |
| Payables turnover | 10.21 | 10.35 | 9.79 | 8.59 | 12.47 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $64,236,000K ÷ $6,290,000K
= 10.21
Sysco Corporation's payables turnover has exhibited fluctuations over the past five years. The payables turnover ratio, a measure of how efficiently a company pays its suppliers, decreased from 12.47 in 2020 to 8.59 in 2021 before showing an upward trend in subsequent years to reach 10.21 in 2024.
The decreasing trend in payables turnover from 2020 to 2021 may suggest that Sysco took longer to pay its suppliers during that period. However, the subsequent increase in the ratio indicates an improvement in the company's ability to manage its payables more efficiently.
Overall, the payables turnover ratios range between 8.59 and 12.47, with the highest turnover ratio observed in 2020. This may indicate that in 2020, Sysco was able to pay off its suppliers more frequently compared to other years. However, the 2024 ratio of 10.21 shows that the company has been able to effectively manage its payables turnover, balancing timely payments to suppliers with maintaining good working capital management.
Peer comparison
Jun 30, 2024