Sysco Corporation (SYY)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,917,000 | 22,821,000 | 22,085,700 | 21,413,500 | 22,628,300 |
| Total stockholders’ equity | US$ in thousands | 1,860,000 | 2,009,000 | 1,382,260 | 1,552,900 | 1,158,610 |
| Financial leverage ratio | 13.40 | 11.36 | 15.98 | 13.79 | 19.53 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,917,000K ÷ $1,860,000K
= 13.40
The financial leverage ratio of Sysco Corporation has fluctuated over the past five years. In 2024, the financial leverage ratio was 13.40, compared to 11.36 in 2023, 15.98 in 2022, 13.79 in 2021, and 19.53 in 2020.
The financial leverage ratio indicates the extent to which the company relies on debt to finance its operations. A higher ratio suggests a higher level of debt financing, which can increase financial risk but also potentially enhance returns for shareholders. Conversely, a lower ratio indicates a lower reliance on debt financing, which may reduce financial risk but could also limit potential returns.
Sysco's financial leverage ratio has shown variability over the years, with the company appearing to have decreased its reliance on debt from 2020 to 2023 before experiencing a slight increase in 2024. It is essential for investors and analysts to closely monitor changes in the financial leverage ratio to assess the company's financial health and risk profile.
Peer comparison
Jun 30, 2024