Sysco Corporation (SYY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 14.63 | 13.71 | 12.57 | 11.73 | 13.40 | 11.76 | 10.29 | 10.95 | 11.36 | 14.41 | 15.37 | 19.91 | 15.98 | 16.89 | 17.55 | 13.21 | 13.79 | 15.79 | 15.76 | 17.49 |
The analysis of Sysco Corporation’s solvency ratios over the referenced period indicates a consistent pattern of extremely low to zero reported leverage and debt ratios, suggesting negligible or nonexistent levels of debt relative to total assets, capital, and equity. Specifically, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are uniformly reported as zero across all periods from September 2020 through June 2025, implying that the company either maintained no significant borrowings or that debt was not disclosed or recorded in the provided data.
Furthermore, the financial leverage ratio demonstrates variability over time, with values fluctuating from a high of approximately 19.91 in September 2022 to a low of around 10.29 in December 2023. The ratios suggest that, despite the negligible debt ratios, the company used substantial financial leverage at certain points—potentially through other means of financing or accounting adjustments—to amplify its asset base relative to equity. The decrease in leverage from late 2022 to late 2023 indicates a reduction in fixed financial obligations or leverage, whereas the subsequent increase suggests a mild re-leverage trend.
Overall, these findings imply that Sysco Corporation's apparent debt levels are either minimal, efficiently managed, or not captured within these ratios. The low or zero debt ratios point toward a conservative debt policy or a focus on equity financing, resulting in a favorable solvency position. The fluctuations in the financial leverage ratio further suggest periods of varying capital structure, but without significant debt burden, the company's solvency appears to be robust through the observed timeframe.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Sysco Corporation, as presented in the data, demonstrates a trajectory characterized initially by significant volatility followed by a general trend toward stabilization and gradual improvement. At the end of September 2020, the ratio was critically low at 0.91, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses, thus raising concerns regarding potential liquidity issues or high debt burdens during that period.
Subsequently, the ratio declined sharply to 0.19 by December 2020, underscoring a period of increased financial stress where the company's operating income was markedly inadequate to meet interest obligations. This period suggests diminished operational performance or elevated interest costs impacting the company's ability to generate sufficient earnings to cover debt service obligations.
From early 2021, the ratio began to improve, reaching 0.49 in March 2021 and then rising more substantially to 1.66 in June 2021 and further to 1.96 in September 2021. This upward trend indicates a recovery in operating earnings relative to interest expense, suggesting improved profitability or improved debt management.
Throughout 2022 and into 2023, the ratio continued its positive trajectory, increasing annually to 2.01 at the end of 2021, then significantly to 3.80 in June 2022 and reaching 5.88 by the end of 2023. These figures reflect a strengthened capacity to cover interest costs, with the ratio comfortably exceeding the critical threshold of 1.0, indicating healthier financial leverage and decreased risk of default on interest obligations.
The subsequent quarters show a slight fluctuation, with the ratio slightly decreasing to 5.70 in March 2024 and further declining to 5.21 in June 2024, then to 5.01 in September 2024. Despite these declines, the ratios remain well above 1.0, maintaining a strong interest coverage position. By the end of 2024 and into early 2025, the ratio stabilizes around 4.94, with a notable decline to 3.41 in June 2025, which, although lower, still signifies a relatively comfortable margin over interest expenses.
In summary, the company's interest coverage ratio experienced significant volatility in the early periods, particularly around late 2020, reflecting periods of operational or financial distress. Since mid-2021, the ratio has shown consistent improvement, indicating a strengthening ability to meet interest obligations. Although minor decreases occur in the most recent quarters, the overall trend suggests enhanced financial stability and manageable debt servicing costs relative to operating earnings over the period analyzed.