Sysco Corporation (SYY)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,167,000 | 3,135,594 | 3,175,852 | 3,172,311 | 3,164,168 | 3,289,144 | 3,263,465 | 2,885,474 | 2,811,160 | 2,487,981 | 2,310,810 | 2,454,927 | 2,370,318 | 2,183,094 | 1,921,090 | 1,691,908 | 1,464,602 | 294,314 | 101,984 | 428,881 |
| Interest expense (ttm) | US$ in thousands | 635,000 | 634,133 | 642,986 | 632,986 | 606,986 | 577,482 | 554,560 | 536,602 | 526,752 | 519,635 | 508,722 | 619,579 | 623,643 | 936,280 | 958,035 | 861,634 | 880,137 | 603,257 | 541,338 | 471,602 |
| Interest coverage | 3.41 | 4.94 | 4.94 | 5.01 | 5.21 | 5.70 | 5.88 | 5.38 | 5.34 | 4.79 | 4.54 | 3.96 | 3.80 | 2.33 | 2.01 | 1.96 | 1.66 | 0.49 | 0.19 | 0.91 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,167,000K ÷ $635,000K
= 3.41
The interest coverage ratios for Sysco Corporation over the period from September 30, 2020 to June 30, 2025, demonstrate a trajectory characterized by initial volatility followed by a sustained improvement, before showing signs of moderation towards the later dates.
During the latter part of 2020, the interest coverage ratios were notably low, with September 2020 at 0.91 and December 2020 plummeting further to 0.19, indicating significant difficulty in covering interest expenses from operating earnings during this interval. The ratio rebounded somewhat by March 2021 to 0.49, yet remained below the generally acceptable threshold of 1.0, suggesting ongoing earnings challenges in meeting interest obligations.
Subsequently, from June 30, 2021 onward, a marked improvement can be observed. The ratio rose consistently, reaching 1.66, then stabilizing around 1.96 in September 2021, and surpassing the critical threshold of 2.0 by December 2021 with a ratio of 2.01. This upward trend continued into 2022, with ratios improving to 2.33 in March, 3.80 in June, and nearly 4.0 in September and December 2022, indicating that operating earnings increasingly covered interest expenses.
In 2023, the interest coverage remained robust, with ratios at 4.79 in March, 5.34 in June, and 5.38 in September, gradually tapering to 4.94 by December 2023. The ratios denote solid operating performance and a comfortable buffer to meet interest obligations.
Moving into 2024, the ratios showed signs of slight contraction but maintained a high level of coverage: 5.70 in March, decreasing to 5.21 in June and further to 5.01 in September. By December 2024 and into the first half of 2025, the ratios remained above 4.9, with a notable decline to 3.41 in June 2025, which approaches but still indicates acceptable coverage levels.
Overall, the interest coverage ratio trajectory reflects a period of financial distress in late 2020, followed by progressive improvement as operating earnings strengthened relative to interest expenses. The ratios generally indicate a comfortable margin for covering interest costs in recent years, though the decline noted in mid-2025 may warrant ongoing monitoring to ensure continued financial stability.
Peer comparison
Jun 30, 2025