Sysco Corporation (SYY)
Cash conversion cycle
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 26.58 | 27.19 | 27.26 | 27.06 | 26.22 | 27.27 | 28.22 | 29.23 | 28.76 | 29.79 | 30.14 | 32.27 | 32.16 | 32.62 | 30.22 | 28.47 | 26.28 | 28.01 | 26.16 | 25.36 |
| Days of sales outstanding (DSO) | days | 24.75 | 26.02 | 24.94 | 25.39 | 24.38 | — | 24.47 | — | 25.92 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 35.74 | 33.71 | 33.12 | 33.74 | 35.26 | 34.84 | 32.82 | 37.57 | 37.29 | 38.66 | 36.76 | 41.68 | 42.51 | 42.77 | 34.64 | 36.65 | 29.27 | 30.06 | 31.01 | 31.80 |
| Cash conversion cycle | days | 15.59 | 19.50 | 19.08 | 18.71 | 15.34 | -7.56 | 19.88 | -8.34 | 17.40 | -8.87 | -6.62 | -9.42 | -10.35 | -10.16 | -4.43 | -8.18 | -2.99 | -2.06 | -4.86 | -6.44 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.58 + 24.75 – 35.74
= 15.59
The cash conversion cycle for Sysco Corporation has fluctuated over the past few quarters. On average, the company takes around 15 to 20 days to convert its investments in inventory and accounts receivable into cash.
In the most recent quarter, the cash conversion cycle was 15.59 days, indicating a relatively efficient management of working capital. However, in the preceding quarter, the cycle increased to 19.50 days, suggesting a longer period to convert assets into cash.
Notably, in the first quarter of 2023, the cash conversion cycle was negative at -7.56 days, indicating that Sysco managed to convert its investments into cash before paying its obligations. This negative cycle could be attributed to effective inventory and account receivables management.
Overall, it is essential for Sysco to monitor and manage its cash conversion cycle effectively to ensure optimal use of working capital and liquidity management in the long run.
Peer comparison
Jun 30, 2024