Sysco Corporation (SYY)
Debt-to-equity ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,860,000 | 2,009,000 | 1,382,260 | 1,552,900 | 1,158,610 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,860,000K
= 0.00
The debt-to-equity ratio of Sysco Corporation has remained consistently at 0.00 for the past five years, indicating that the company has not utilized any long-term debt to finance its operations and has relied solely on equity. This suggests that Sysco Corporation has a conservative capital structure with a low level of financial leverage, which may indicate a lower financial risk and a strong financial position. However, it is important to consider that a very low debt-to-equity ratio may also imply missed opportunities for growth and potential tax benefits associated with debt financing. Additionally, maintaining a zero debt-to-equity ratio over an extended period may signal underutilization of debt as a strategic financial tool. It would be beneficial for Sysco Corporation to evaluate its capital structure and consider the optimal mix of debt and equity to support its long-term growth objectives.
Peer comparison
Jun 30, 2024