Sysco Corporation (SYY)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 26.58 | 26.22 | 28.76 | 32.16 | 26.28 |
| Days of sales outstanding (DSO) | days | 24.75 | 24.38 | 25.92 | 26.97 | 20.71 |
| Number of days of payables | days | 35.74 | 35.26 | 37.29 | 42.51 | 29.27 |
| Cash conversion cycle | days | 15.59 | 15.34 | 17.40 | 16.62 | 17.72 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.58 + 24.75 – 35.74
= 15.59
Sysco Corporation's cash conversion cycle has shown relatively stable performance over the past five years. The company takes an average of 15.93 days to convert its investments in inventory into cash receipts from customers. In the most recent year, the cash conversion cycle slightly increased to 15.59 days from 15.34 days in the previous year. This indicates that Sysco is efficient in managing its working capital, as it has been able to collect cash from customers relatively quickly compared to the time it takes to pay its suppliers. Overall, a lower cash conversion cycle is favorable as it implies that the company is able to generate cash more quickly from its operational activities.
Peer comparison
Jun 30, 2024