Sysco Corporation (SYY)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 78,844,000 | 76,324,700 | 68,636,100 | 51,297,800 | 52,893,300 |
| Total current assets | US$ in thousands | 11,043,000 | 10,608,000 | 10,483,200 | 10,733,600 | 12,348,200 |
| Total current liabilities | US$ in thousands | 9,241,000 | 8,540,000 | 8,750,050 | 7,319,840 | 6,717,850 |
| Working capital turnover | 43.75 | 36.91 | 39.60 | 15.03 | 9.39 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $78,844,000K ÷ ($11,043,000K – $9,241,000K)
= 43.75
The working capital turnover ratio for Sysco Corporation has shown a consistent upward trend over the past five years, indicating an improvement in the efficiency of the company's working capital management.
In particular, from June 30, 2020, to June 30, 2024, the working capital turnover ratio has significantly increased from 9.39 to 43.75, demonstrating that Sysco has been able to generate more revenue relative to its working capital investment.
This improvement suggests that Sysco has effectively optimized its current assets and liabilities to support its operations and generate sales. A higher working capital turnover ratio typically indicates that the company is managing its working capital efficiently and effectively.
Overall, the increasing trend in the working capital turnover ratio reflects positively on Sysco's ability to generate sales from its working capital resources, indicating improved operational efficiency and potentially stronger financial performance.
Peer comparison
Jun 30, 2024