Sysco Corporation (SYY)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 13.40 | 11.36 | 15.98 | 13.79 | 19.53 |
The solvency ratios of Sysco Corporation, as shown in the table, indicate the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all consistently been reported as 0.00 over the five-year period from June 30, 2020, to June 30, 2024. This suggests that the company has not relied heavily on debt to finance its operations and investments, and has maintained a strong financial position with minimal leverage.
However, the financial leverage ratio has fluctuated over the same period, showing values of 13.40 in 2024, 11.36 in 2023, 15.98 in 2022, 13.79 in 2021, and 19.53 in 2020. The increasing trend in the financial leverage ratio from 2020 to 2022 indicates that the company's reliance on debt to fund its operations and investments had temporarily increased during those years, potentially indicating higher financial risk. However, the decreasing trend from 2022 to 2024 suggests that Sysco may have taken steps to manage its debt levels and improve its financial stability.
Overall, while the debt ratios indicate a conservative approach to financial risk management by Sysco Corporation, the fluctuation in the financial leverage ratio underscores the importance of monitoring and managing debt levels to ensure long-term solvency and stability.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 168.53 | 98.27 | 81.44 | 48.34 | 27.42 |
The interest coverage ratio for Sysco Corporation has shown a consistent and significant improvement over the past five years. The ratio increased from 27.42 in June 2020 to 168.53 in June 2024. This trend indicates that Sysco has substantially strengthened its ability to cover its interest expenses with operating income.
A high interest coverage ratio implies that the company is generating more than enough operating income to cover its interest payments, which is a positive indicator of financial health and stability. Sysco's interest coverage ratio exceeding 100 suggests that the company is comfortably meeting its interest obligations.
Overall, the upward trend in Sysco Corporation's interest coverage ratio is a positive sign, reflecting improved profitability and financial performance over the years. Investors and creditors may find this trend reassuring as it indicates the company's ability to manage its debt obligations effectively.