Debt to Equity
since 2005
Calculation
Sysco Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current maturities1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| Jun 29, 2024 | 6.44 | = | 11,982) | ÷ | 1,860) |
| Jul 1, 2023 | 5.18 | = | 10,411) | ÷ | 2,009) |
| Jul 2, 2022 | 7.70 | = | 10,648) | ÷ | 1,382) |
| Jul 3, 2021 | 7.14 | = | 11,083) | ÷ | 1,553) |
| Jun 27, 2020 | 12.47 | = | 14,447) | ÷ | 1,159) |
| Jun 29, 2019 | 3.26 | = | 8,163) | ÷ | 2,503) |
| Jun 30, 2018 | 3.32 | = | 8,327) | ÷ | 2,507) |
| Jul 1, 2017 | 3.44 | = | 8,195) | ÷ | 2,382) |
| Jul 2, 2016 | 2.14 | = | 7,435) | ÷ | 3,480) |
| Jun 27, 2015 | 1.39 | = | 7,322) | ÷ | 5,260) |
| Jun 28, 2014 | 0.52 | = | 2,760) | ÷ | 5,267) |
| Jun 29, 2013 | 0.56 | = | 2,889) | ÷ | 5,192) |
| Jun 30, 2012 | 0.64 | = | 3,018) | ÷ | 4,685) |
| Jul 2, 2011 | 0.57 | = | 2,669) | ÷ | 4,705) |
| Jul 3, 2010 | 0.65 | = | 2,481) | ÷ | 3,828) |
| Jun 27, 2009 | 0.72 | = | 2,477) | ÷ | 3,450) |
| Jun 28, 2008 | 0.58 | = | 1,980) | ÷ | 3,409) |
| Jun 30, 2007 | 0.54 | = | 1,781) | ÷ | 3,278) |
| Jul 1, 2006 | 0.58 | = | 1,763) | ÷ | 3,052) |
| Jul 2, 2005 | 0.52 | = | 1,431) | ÷ | 2,759) |
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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27), 10-K (reporting date: 2014-06-28), 10-K (reporting date: 2013-06-29), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-07-02), 10-K (reporting date: 2010-07-03), 10-K (reporting date: 2009-06-27), 10-K (reporting date: 2008-06-28), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-07-01), 10-K (reporting date: 2005-07-02).
1 US$ in millions
The financial data reflecting the long-term debt, shareholders' equity, and debt to equity ratio over the analyzed periods reveals several notable trends regarding the company’s capital structure and leverage.
- Long-term debt
- The level of long-term debt, including current maturities, generally increased from 2005 through 2024, showing periodic fluctuations. Initially, the debt increased steadily from $1,431 million in 2005 to a peak of $8,327 million in 2008. A significant surge occurred between 2014 and 2016, when debt more than doubled from about $2,760 million to $7,322 million, followed by a gradual rise reaching $11,982 million in 2024. This pattern suggests increased reliance on debt financing, particularly pronounced from 2014 onwards.
- Shareholders’ equity
- Shareholders’ equity demonstrated a growth phase from 2005 to 2015, rising from $2,759 million to a peak near $5,267 million, indicating accumulation of net assets or retained earnings during this period. However, after 2015, equity values sharply declined to a low around $1,159 million in 2020, with some fluctuations afterward, ending at $1,860 million in 2024. This reduction in equity could be indicative of share buybacks, dividend payments exceeding net income, or losses affecting retained earnings.
- Debt to equity ratio
- The debt to equity ratio illustrates a marked increase in financial leverage over the timeframe. Initially, ratios hovered around moderate levels between 0.52 and 0.72 from 2005 to 2009, showing balanced use of debt relative to equity. A rapid escalation commenced from 2014, with the ratio soaring to 1.39, then further spiking to a peak of 12.47 in 2020. Subsequent periods reflected some moderation, falling to 5.18 in 2023, but still indicating a significantly elevated leverage compared to earlier years. This surge corresponds with the substantial increase in debt coupled with declining equity, underscoring heightened financial risk.
Overall, the increasing long-term debt levels combined with the decline in shareholders’ equity resulted in a substantially higher debt to equity ratio, particularly in the last decade. This trend points toward a strategic shift towards greater leverage, which may enhance financial risk and impact the company’s credit profile. Stakeholders should be attentive to the implications of such a capital structure, including interest obligations and flexibility for future financing.
Comparison to Competitors
Sysco Corp., debt to equity, long-term trends, comparison to competitors
| Sysco Corp. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Jun 29, 2024 | 6.44 | 0.25 | 1.19 | 0.56 |
| Jul 1, 2023 | 5.18 | 0.26 | 1.44 | 0.58 |
| Jul 2, 2022 | 7.70 | 0.32 | 1.07 | 0.51 |
| Jul 3, 2021 | 7.14 | 0.43 | 0.88 | 0.60 |
| Jun 27, 2020 | 12.47 | 0.42 | 0.97 | 0.73 |
| Jun 29, 2019 | 3.26 | 0.45 | 1.00 | 0.80 |
| Jun 30, 2018 | 3.32 | 0.51 | 0.99 | 0.60 |
| Jul 1, 2017 | 3.44 | 0.62 | 1.16 | 0.59 |
| Jul 2, 2016 | 2.14 | 0.43 | 0.98 | 0.62 |
| Jun 27, 2015 | 1.39 | 0.58 | 0.91 | 0.62 |
| Jun 28, 2014 | 0.52 | 0.41 | 0.85 | 0.74 |
| Jun 29, 2013 | 0.56 | 0.46 | 1.07 | 0.71 |
| Jun 30, 2012 | 0.64 | 0.11 | 1.11 | 0.75 |
| Jul 2, 2011 | 0.57 | 0.18 | 1.02 | 0.73 |
| Jul 3, 2010 | 0.65 | 0.20 | 1.10 | 0.58 |
| Jun 27, 2009 | 0.72 | 0.23 | 1.37 | 0.65 |
| Jun 28, 2008 | 0.58 | 0.26 | 1.12 | 0.69 |
| Jun 30, 2007 | 0.54 | 0.26 | 0.64 | 0.63 |
| Jul 1, 2006 | 0.58 | 0.06 | 0.69 | 0.73 |
| Jul 2, 2005 | 0.52 | 0.09 | 0.73 | 0.64 |
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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27), 10-K (reporting date: 2014-06-28), 10-K (reporting date: 2013-06-29), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-07-02), 10-K (reporting date: 2010-07-03), 10-K (reporting date: 2009-06-27), 10-K (reporting date: 2008-06-28), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-07-01), 10-K (reporting date: 2005-07-02).
Comparison to Sector (Consumer Staples Distribution & Retail)
Sysco Corp., debt to equity, long-term trends, comparison to sector (consumer staples distribution & retail)
| Sysco Corp. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Jun 29, 2024 | 6.44 | 0.57 |
| Jul 1, 2023 | 5.18 | 0.59 |
| Jul 2, 2022 | 7.70 | 0.54 |
| Jul 3, 2021 | 7.14 | 0.61 |
| Jun 27, 2020 | 12.47 | 0.70 |
| Jun 29, 2019 | 3.26 | 0.77 |
| Jun 30, 2018 | 3.32 | 0.63 |
| Jul 1, 2017 | 3.44 | 0.66 |
| Jul 2, 2016 | 2.14 | 0.64 |
| Jun 27, 2015 | 1.39 | 0.65 |
| Jun 28, 2014 | 0.52 | 0.72 |
| Jun 29, 2013 | 0.56 | 0.74 |
| Jun 30, 2012 | 0.64 | 0.73 |
| Jul 2, 2011 | 0.57 | 0.71 |
| Jul 3, 2010 | 0.65 | 0.62 |
| Jun 27, 2009 | 0.72 | 0.71 |
| Jun 28, 2008 | 0.58 | 0.72 |
| Jun 30, 2007 | 0.54 | 0.60 |
| Jul 1, 2006 | 0.58 | 0.64 |
| Jul 2, 2005 | 0.52 | 0.59 |
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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27), 10-K (reporting date: 2014-06-28), 10-K (reporting date: 2013-06-29), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-07-02), 10-K (reporting date: 2010-07-03), 10-K (reporting date: 2009-06-27), 10-K (reporting date: 2008-06-28), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-07-01), 10-K (reporting date: 2005-07-02).
Comparison to Industry (Consumer Staples)
Sysco Corp., debt to equity, long-term trends, comparison to industry (consumer staples)
| Sysco Corp. | Consumer Staples | |
|---|---|---|
| Jun 29, 2024 | 6.44 | 1.11 |
| Jul 1, 2023 | 5.18 | 1.15 |
| Jul 2, 2022 | 7.70 | 1.07 |
| Jul 3, 2021 | 7.14 | 1.07 |
| Jun 27, 2020 | 12.47 | 1.24 |
| Jun 29, 2019 | 3.26 | 1.18 |
| Jun 30, 2018 | 3.32 | 1.11 |
| Jul 1, 2017 | 3.44 | 1.20 |
| Jul 2, 2016 | 2.14 | 1.09 |
| Jun 27, 2015 | 1.39 | 1.00 |
| Jun 28, 2014 | 0.52 | 0.96 |
| Jun 29, 2013 | 0.56 | 0.87 |
| Jun 30, 2012 | 0.64 | 0.83 |
| Jul 2, 2011 | 0.57 | 0.80 |
| Jul 3, 2010 | 0.65 | 0.74 |
| Jun 27, 2009 | 0.72 | 0.69 |
| Jun 28, 2008 | 0.58 | 0.68 |
| Jun 30, 2007 | 0.54 | 0.55 |
| Jul 1, 2006 | 0.58 | 0.52 |
| Jul 2, 2005 | 0.52 | 0.59 |
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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27), 10-K (reporting date: 2014-06-28), 10-K (reporting date: 2013-06-29), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-07-02), 10-K (reporting date: 2010-07-03), 10-K (reporting date: 2009-06-27), 10-K (reporting date: 2008-06-28), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-07-01), 10-K (reporting date: 2005-07-02).