Sysco Corporation (SYY)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 27.78 | 26.58 | 26.22 | 28.76 | 32.16 |
| Days of sales outstanding (DSO) | days | 24.68 | 24.75 | 24.38 | 25.92 | 26.97 |
| Number of days of payables | days | — | 35.74 | 34.66 | 37.29 | 42.51 |
| Cash conversion cycle | days | 52.46 | 15.59 | 15.94 | 17.40 | 16.62 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.78 + 24.68 – —
= 52.46
The cash conversion cycle (CCC) for Sysco Corporation has exhibited notable fluctuations over the period from June 30, 2021, to June 30, 2025. Specifically, the CCC was 16.62 days as of June 30, 2021, indicating a relatively efficient management of working capital in terms of receivables, inventory, and payables. This cycle increased slightly to 17.40 days by June 30, 2022, reflecting a marginal elongation, but remained close to the prior year's level, suggesting stability in the company's operational cash conversion processes.
By June 30, 2023, the cycle decreased slightly to 15.94 days, which could indicate improved efficiency in converting investments in inventory and receivables into cash, or potentially faster collection and inventory turnover. The trend continued with a minimal reduction to 15.59 days as of June 30, 2024, reinforcing the notion of effective working capital management during this period.
However, a significant change is evident in the year ending June 30, 2025, when the CCC sharply increased to 52.46 days. This substantial escalation signifies a prolonged period for cash recovery, likely due to extended receivables collection, increased inventory holding periods, or delayed payments to suppliers. Such a marked rise may also reflect changes in the company's operational strategies, lending policies, supply chain disruptions, or other financial factors that adversely impacted cash flow timing.
Overall, the data demonstrates a generally stable and efficient cash conversion cycle during the three-year span from 2021 to 2024, with the notable exception of the 2025 increase, which indicates a significant deterioration in cash flow management in that year. This trend warrants further investigation to identify underlying causes and potential implications for the company's liquidity and operational efficiency.
Peer comparison
Jun 30, 2025