Name: Sysco Corp. (NYSE:SYY) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Sysco Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020	Jun 29, 2019
Net earnings	1,955)	1,770)	1,359)	524)	215)	1,674)
Pension settlement charge	—)	315)	—)	—)	—)	—)
Share-based compensation expense	104)	96)	122)	96)	42)	105)
Depreciation and amortization	873)	776)	773)	738)	806)	764)
Operating lease asset amortization	124)	113)	108)	114)	108)	—)
Amortization of debt issuance and other debt-related costs	19)	20)	22)	26)	23)	21)
Deferred income taxes	27)	(16)	(64)	(158)	(191)	(127)
Provision for (gains) losses on receivables	57)	36)	(15)	(153)	404)	63)
Loss on extinguishment of debt	—)	—)	116)	294)	—)	—)
(Gain) loss on sale of business	—)	—)	—)	23)	—)	(66)
Goodwill impairment	—)	—)	—)	—)	203)	—)
Impairment of assets held for sale	—)	—)	—)	—)	56)	—)
Other non-cash items	(12)	(7)	(13)	(17)	(1)	(3)
(Increase) decrease in receivables	(110)	(271)	(971)	(662)	916)	(203)
(Increase) decrease in inventories	(70)	(22)	(709)	(551)	115)	(115)
(Increase) decrease in prepaid expenses and other current assets	(2)	2)	5)	(33)	10)	(19)
Increase (decrease) in accounts payable	104)	196)	810)	1,459)	(834)	246)
Increase (decrease) in accrued expenses	(12)	22)	423)	167)	(140)	138)
Increase (decrease) in operating lease liabilities	(144)	(134)	(126)	(142)	(124)	—)
Increase (decrease) in accrued income taxes	13)	92)	(10)	119)	(103)	5)
(Increase) decrease in other assets	38)	6)	(1)	19)	21)	(21)
Increase (decrease) in other long-term liabilities	25)	(126)	(38)	41)	93)	(51)
Additional changes in certain assets and liabilities, net of effect of businesses acquired	(158)	(235)	(616)	416)	(47)	(20)
Adjustments to reconcile net earnings to cash provided by operating activities	1,034)	1,097)	433)	1,380)	1,403)	737)
Net cash provided by operating activities	2,989)	2,868)	1,791)	1,904)	1,619)	2,411)
Additions to plant and equipment	(832)	(793)	(633)	(471)	(720)	(692)
Proceeds from sales of plant and equipment	79)	42)	24)	59)	29)	21)
Acquisition of businesses, net of cash acquired	(1,210)	(37)	(1,281)	—)	(143)	(107)
Proceeds from sale of business	—)	—)	—)	—)	—)	150)
Purchase of marketable securities	(33)	(16)	(19)	(53)	(11)	(116)
Proceeds from sales of marketable securities	29)	12)	17)	36)	21)	—)
Other investing activities	5)	8)	14)	—)	69)	2)
Net cash used for investing activities	(1,962)	(785)	(1,878)	(429)	(756)	(743)
Bank and commercial paper borrowings, net	200)	—)	—)	(826)	617)	132)
Other debt borrowings including senior notes	1,362)	249)	1,248)	1)	6,784)	388)
Other debt repayments including senior notes	(447)	(830)	(495)	(2,003)	(1,119)	(790)
Redemption premiums and repayments for senior notes	—)	—)	(1,396)	(1,000)	—)	—)
Cash received from termination of interest rate swap agreements	—)	—)	23)	—)	—)	—)
Proceeds from stock option exercises	120)	79)	128)	130)	228)	253)
Stock repurchases	(1,232)	(500)	(500)	—)	(845)	(1,022)
Dividends paid	(1,008)	(996)	(959)	(918)	(856)	(775)
Other financing activities	(33)	(58)	(37)	(13)	(88)	(23)
Net cash provided by (used for) financing activities	(1,038)	(2,056)	(1,987)	(4,628)	4,720)	(1,837)
Effect of exchange rates on cash, cash equivalents and restricted cash	(10)	8)	(32)	95)	(19)	(15)
Net increase (decrease) in cash, cash equivalents and restricted cash	(21)	35)	(2,106)	(3,058)	5,563)	(184)
Cash, cash equivalents and restricted cash at beginning of period	966)	931)	3,037)	6,096)	532)	716)
Cash, cash equivalents and restricted cash at end of period	945)	966)	931)	3,037)	6,096)	532)

Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).

Operating performance has demonstrated a significant recovery and growth trajectory over the analyzed six-year period. Net earnings experienced a sharp contraction in 2020, falling to 215 million USD, but have since rebounded consistently, reaching 1,955 million USD by 2024. This recovery is mirrored in the net cash provided by operating activities, which grew from 2,411 million USD in 2019 to 2,989 million USD in 2024, indicating a strengthening capacity to generate cash from core business operations.

Operating Cash Flow Dynamics: Cash flow from operations has remained resilient, consistently exceeding net earnings. A substantial portion of this is driven by non-cash adjustments, specifically depreciation and amortization, which have remained stable between 738 million USD and 873 million USD annually. Working capital management showed high volatility between 2020 and 2022, characterized by significant swings in receivables and accounts payable, before stabilizing in the 2023-2024 period.
Investment Strategy and Capital Expenditure: Investing activities are characterized by a dual focus on organic maintenance and inorganic expansion. Capital expenditures for plant and equipment have trended upward, rising from 692 million USD in 2019 to 832 million USD in 2024. However, the most significant impacts on investing cash flows occurred in 2022 and 2024, where acquisitions of businesses totaled 1,281 million USD and 1,210 million USD, respectively, leading to total net cash used for investing activities peaking at 1,962 million USD in 2024.
Financing and Capital Allocation: Financing activities exhibit a pattern of strategic debt utilization and consistent shareholder returns. A massive influx of cash occurred in 2020 due to 6,784 million USD in debt borrowings, providing a liquidity buffer. This was followed by periods of aggressive debt repayment and redemption, particularly in 2021. Shareholder distributions have remained a priority, with dividends paid increasing steadily from 775 million USD in 2019 to 1,008 million USD in 2024. Stock repurchases have been executed sporadically, with a notable peak of 1,232 million USD in 2024.
Liquidity Position: The cash position experienced extreme fluctuations, peaking at 6,096 million USD at the end of 2020 following the significant debt issuance. This surplus was subsequently deployed toward debt repayments, business acquisitions, and shareholder returns, resulting in a more normalized cash balance of 945 million USD by the end of June 2024.

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