Sysco Corporation (SYY)
Solvency ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| 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 | 14.63 | 13.40 | 11.36 | 15.98 | 13.79 |
The provided data indicates that Sysco Corporation's debt-related solvency ratios—namely the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio—have consistently been reported as zero across all analyzed fiscal years from June 30, 2021, through June 30, 2025. This uniformity suggests that the company maintains an extremely conservative or debt-free capital structure, possibly due to the reporting methodology or the nature of its operations, which may rely predominantly on equity financing.
Contrasting sharply with these negligible or non-existent debt ratios, the financial leverage ratio displays variability over the same period. Specifically, the leverage ratio increased from 13.79 in 2021 to a peak of 15.98 in 2022, then declined to 11.36 in 2023 before rising again to 13.40 in 2024 and slightly increasing to 14.63 in 2025. This ratio measures the extent of fixed financing obligations relative to equity, indicating the company's reliance on financial leverage—particularly interest-bearing debt—if any exists.
The apparent contradiction between the zero debt ratios and the evident fluctuations in the leverage ratio may suggest that the leverage ratio calculation includes other financial elements beyond traditional debt, such as operating leases or other non-debt liabilities, or reflects a different accounting treatment. Alternatively, it could denote that while formal debt levels are minimal or absent, the company’s financial structure involves significant operating leverage or off-balance-sheet obligations.
In summary, Sysco Corporation's solvency profile, as reflected in the data, portrays a firm with negligible reported debt levels, implying a very conservative leverage stance. Nonetheless, the observed variation in the financial leverage ratio indicates some underlying financial structure components that influence its leverage profile, warranting further investigation into the specific accounting treatments and off-balance-sheet items.
Coverage ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 5.23 | 5.34 | 3.80 | 1.66 |
The interest coverage ratio for Sysco Corporation exhibits notable fluctuations over the period spanning June 30, 2021, through June 30, 2025. As of June 30, 2021, the ratio stood at 1.66, indicating that the company's earnings before interest and taxes (EBIT) were approximately 1.66 times its interest expenses, suggesting a relatively modest capacity to meet interest obligations at that time.
By June 30, 2022, the ratio improved significantly to 3.80, reflecting a more comfortable margin of coverage and an enhancement in the company's ability to service its interest expenses from its operational earnings. This upward trend continued into June 30, 2023, with the ratio reaching 5.34, signaling a substantial strengthening of Sysco's interest coverage and a markedly reduced risk associated with interest payments.
For the subsequent fiscal year ending June 30, 2024, the ratio remained high at 5.23, maintaining a strong coverage level comparable to the previous year and indicating sustained operational performance and manageable debt levels.
However, the projected data for June 30, 2025, notes an interest coverage ratio of 0.00. This suggests a potential scenario where either the company is expected to have no earnings before interest and taxes, or the data might reflect an extraordinary event such as substantial interest expenses exceeding EBIT, or possibly an accounting anomaly or data omission.
Overall, the trend from 2021 through 2024 indicates significant improvement in Sysco's ability to cover interest obligations, pointing to enhanced financial stability and operational efficiency during that period. The apparent zero ratio in 2025 warrants careful scrutiny, as it may imply increased financial risk or extraordinary circumstances impacting the company's interest coverage capacity.