Sysco Corporation (SYY)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,202,000 | 3,038,550 | 2,346,500 | 1,447,190 | 749,505 |
| Interest expense | US$ in thousands | 19,000 | 30,921 | 28,811 | 29,939 | 27,330 |
| Interest coverage | 168.53 | 98.27 | 81.44 | 48.34 | 27.42 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,202,000K ÷ $19,000K
= 168.53
The interest coverage ratio for Sysco Corporation has shown a generally positive trend over the past five years, indicating the company's ability to meet its interest payments from its operating income. The ratio has consistently increased from 27.42 in 2020 to 168.53 in 2024, reflecting the company's improving ability to cover its interest obligations. This improvement suggests that Sysco Corporation has been generating more than enough operating income to comfortably cover its interest expenses, which is a positive sign for creditors and investors. The significant increase in the interest coverage ratio over the five-year period indicates a strengthening financial position for the company.
Peer comparison
Jun 30, 2024