Sysco Corporation (SYY)
Quick ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | — | 696,000 | 745,201 | 867,086 | 3,007,120 |
| Short-term investments | US$ in thousands | — | 1,182,000 | — | — | — |
| Receivables | US$ in thousands | 5,502,000 | 5,346,000 | 5,098,000 | 4,874,850 | 3,790,270 |
| Total current liabilities | US$ in thousands | 9,916,000 | 9,241,000 | 8,540,430 | 8,750,050 | 7,319,840 |
| Quick ratio | 0.55 | 0.78 | 0.68 | 0.66 | 0.93 |
June 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($—K
+ $—K
+ $5,502,000K)
÷ $9,916,000K
= 0.55
The analysis of Sysco Corporation’s quick ratio over the specified periods indicates fluctuations in the company's liquidity position. As of June 30, 2021, the quick ratio stood at 0.93, suggesting that the company had slightly less than one dollar of liquid assets (excluding inventory) for every dollar of current liabilities, reflecting a relatively conservative liquidity stance at that time.
By June 30, 2022, the quick ratio declined sharply to 0.66, indicating a reduction in the company’s liquid assets relative to current obligations. This decline could imply either a decrease in liquid assets, an increase in current liabilities, or a combination of both, potentially signaling a tightening of short-term liquidity.
The ratio experienced a marginal recovery by June 30, 2023, rising to 0.68. This incremental increase suggests some stabilization or improvement in the liquidity position, though it remained below the 2021 level, still indicating that liquidity remained somewhat constrained.
Further data for June 30, 2024, shows an uptick to 0.78, approaching closer to a more comfortable liquidity margin. This positive movement could be interpreted as an enhancement in the company's ability to cover its current liabilities with liquid assets, contributing to a modest strengthening of liquidity health.
However, as of June 30, 2025, the quick ratio declined again to 0.55, reflecting a notable diminution in short-term liquidity. This decline emphasizes a potential increase in current liabilities relative to liquid assets or a decrease in liquid resources, which could raise concerns about the company's ability to meet immediate obligations without liquidating inventory or other less liquid assets.
Overall, the trend exhibits variability, with the quick ratio experiencing periods of both improvement and decline over the four-year span. While there is some indication of recovery toward 2024, the ratios consistently remain below 1, suggesting that Sysco’s liquid assets are generally insufficient to cover all current liabilities without relying on inventory. This persistent position might raise caution regarding short-term liquidity management and the ability to respond to unforeseen financial demands.
Peer comparison
Jun 30, 2025