Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Sysco Corp., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02), 10-K (reporting date: 2021-07-03), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-K (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-K (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-Q (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29).
- Current Ratio
- The current ratio exhibited a generally upward trend from September 2018 to December 2020, increasing from 1.3 to a peak of 1.79 before gradually declining. During the period from December 2020 to December 2022, the ratio decreased steadily to approximately 1.2, reflecting a reduction in short-term liquidity. In the most recent periods from December 2022 to June 2024, the ratio fluctuated slightly but remained close to 1.2–1.3, indicating a stabilization in the company's ability to meet short-term obligations.
- Quick Ratio
- The quick ratio followed a somewhat similar pattern. Initially, it improved from 0.76 in September 2018 to a high of 1.33 in June 2020, marking a significant enhancement in liquid assets relative to current liabilities. After this peak, a decline was observed, with the quick ratio lowering to around 0.64 by December 2022. The last few quarters show a modest recovery to approximately 0.74 by March 2024 before a slight dip to 0.65 in June 2024. This indicates fluctuations in the company's liquid asset base excluding inventories, suggesting some variability in liquid resource management.
- Cash Ratio
- The cash ratio showed the most pronounced volatility among the liquidity ratios. From a low base of around 0.07–0.12 during 2018 and early 2019, the ratio surged dramatically to 0.9 in June 2020, reflecting a considerable increase in cash and cash equivalents relative to current liabilities. However, after this peak, a sharp decline occurred, with the ratio dropping to very low levels of 0.05–0.10 through late 2022. Recent data from 2023 and early 2024 show minor fluctuations, ending near 0.07–0.08. This pattern suggests the company temporarily bolstered its cash reserves significantly during mid-2020 but later released or reallocated these reserves to other uses.
- Overall Analysis
- The liquidity metrics display a strong improvement during early 2020, likely in response to external pressures or strategic changes, followed by a gradual normalization or reduction through subsequent periods. The initial sharp increases in the quick and cash ratios during 2020 were not sustained, indicating that the elevated liquidity levels were temporary. The current ratio's more moderate decline suggests that while liquid assets decreased, overall short-term asset coverage remained fairly stable in the medium term. The differential trends among the ratios indicate that while inventories and receivables may have played a role, cash management was particularly dynamic during the analyzed periods.
Current Ratio
Sysco Corp., current ratio calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | Jul 3, 2021 | Mar 27, 2021 | Dec 26, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Current assets | 11,043) | 11,205) | 11,310) | 10,896) | 10,608) | 10,899) | 10,396) | 10,767) | 10,483) | 10,413) | 10,063) | 10,688) | 10,734) | 11,587) | 11,991) | 12,433) | 12,348) | 9,858) | 8,662) | 8,484) | 8,142) | 8,456) | 8,438) | 8,642) | |||||||
| Current liabilities | 9,241) | 8,366) | 8,254) | 8,454) | 8,540) | 8,981) | 8,389) | 8,959) | 8,750) | 8,372) | 7,594) | 7,738) | 7,320) | 7,008) | 6,717) | 7,168) | 6,718) | 6,625) | 6,932) | 6,101) | 6,103) | 6,500) | 6,750) | 6,641) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Current ratio1 | 1.20 | 1.34 | 1.37 | 1.29 | 1.24 | 1.21 | 1.24 | 1.20 | 1.20 | 1.24 | 1.33 | 1.38 | 1.47 | 1.65 | 1.79 | 1.73 | 1.84 | 1.49 | 1.25 | 1.39 | 1.33 | 1.30 | 1.25 | 1.30 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.97 | 0.94 | 0.93 | 1.09 | 1.07 | 1.08 | 1.06 | 1.03 | 1.02 | 1.04 | 1.03 | 1.02 | 1.00 | 1.00 | 0.99 | 0.98 | 1.13 | 1.11 | 1.04 | 1.01 | 1.01 | 0.98 | 0.96 | 1.02 | |||||||
| Target Corp. | 0.91 | 0.86 | 0.83 | 0.88 | 0.92 | 0.86 | 0.82 | 0.87 | 0.99 | 0.97 | 1.04 | 1.07 | 1.03 | 1.05 | 1.11 | 1.01 | 0.89 | 0.83 | 0.84 | 0.88 | — | — | — | — | |||||||
| Walmart Inc. | 0.83 | 0.85 | 0.83 | 0.82 | 0.82 | 0.86 | 0.84 | 0.86 | 0.93 | 0.95 | 0.96 | 0.95 | 0.97 | 0.84 | 0.79 | 0.77 | 0.79 | 0.81 | 0.76 | 0.77 | — | — | — | — | |||||||
Based on: 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02), 10-K (reporting date: 2021-07-03), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-K (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-K (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-Q (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29).
1 Q4 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,043 ÷ 9,241 = 1.20
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity and working capital management over the observed period.
- Current Assets
- Current assets remained relatively stable with moderate fluctuations from late 2018 through early 2020, beginning around $8.6 billion and gradually increasing. A significant rise is observed in mid-2020, peaking above $12.4 billion, followed by a steady decline and some variability through 2021 and 2022. From late 2022 into 2024, current assets show a moderate upward trend, stabilizing around the $11 billion mark, demonstrating a tendency towards maintaining a buffer in current assets.
- Current Liabilities
- Current liabilities followed a less consistent path, initially fluctuating between approximately $6.1 billion and $6.9 billion through 2018 and 2019. The values notably increased during 2020 and 2021, reaching peaks near $8.9 billion. In the subsequent quarters, current liabilities showed slight decreases but remained elevated relative to the earlier periods, indicating a rise in short-term obligations consistent with operational or financial needs during those years. By mid-2024, liabilities reached around $9.2 billion, suggesting a continuation of this higher base level.
- Current Ratio
- The current ratio exhibits considerable variability, beginning around 1.3 in late 2018. It generally increased during early 2020, with a notable peak at approximately 1.84 amid the mid-2020 period, indicating enhanced liquidity and a stronger capacity to cover short-term liabilities with current assets during that time. Following this peak, the ratio progressively declined, stabilizing around 1.2 to 1.3 from late 2021 through mid-2024. This pattern suggests a return to more normalized liquidity levels after the temporary emphasis on liquidity at the pandemic onset.
Overall, the data suggest that the company boosted its liquidity notably in mid-2020, likely as a defensive measure in response to heightened economic uncertainty. After this period, both current assets and current liabilities adjusted downward, and liquidity metrics normalized. The current ratio remaining above 1 throughout reflects ongoing compliance with prudent short-term financial management, although the trend towards a slightly reduced ratio in recent quarters may indicate increased utilization of current assets or elevated liabilities that merit monitoring going forward.
Quick Ratio
Sysco Corp., quick ratio calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | Jul 3, 2021 | Mar 27, 2021 | Dec 26, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 696) | 598) | 962) | 569) | 745) | 758) | 500) | 438) | 867) | 876) | 1,374) | 2,068) | 3,007) | 4,896) | 5,767) | 5,986) | 6,059) | 2,241) | 525) | 455) | 513) | 522) | 745) | 790) | |||||||
| Accounts receivable, less allowances | 5,324) | 5,557) | 5,292) | 5,339) | 5,092) | 5,227) | 4,908) | 5,337) | 4,839) | 4,778) | 4,220) | 4,310) | 3,782) | 3,221) | 2,855) | 3,106) | 2,894) | 3,656) | 4,376) | 4,397) | 4,182) | 4,329) | 4,147) | 4,242) | |||||||
| Total quick assets | 6,020) | 6,155) | 6,254) | 5,908) | 5,837) | 5,985) | 5,408) | 5,775) | 5,706) | 5,654) | 5,594) | 6,378) | 6,789) | 8,116) | 8,622) | 9,092) | 8,953) | 5,897) | 4,900) | 4,852) | 4,695) | 4,851) | 4,892) | 5,033) | |||||||
| Current liabilities | 9,241) | 8,366) | 8,254) | 8,454) | 8,540) | 8,981) | 8,389) | 8,959) | 8,750) | 8,372) | 7,594) | 7,738) | 7,320) | 7,008) | 6,717) | 7,168) | 6,718) | 6,625) | 6,932) | 6,101) | 6,103) | 6,500) | 6,750) | 6,641) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Quick ratio1 | 0.65 | 0.74 | 0.76 | 0.70 | 0.68 | 0.67 | 0.64 | 0.64 | 0.65 | 0.68 | 0.74 | 0.82 | 0.93 | 1.16 | 1.28 | 1.27 | 1.33 | 0.89 | 0.71 | 0.80 | 0.77 | 0.75 | 0.72 | 0.76 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.39 | 0.40 | 0.38 | 0.55 | 0.52 | 0.51 | 0.50 | 0.42 | 0.42 | 0.43 | 0.46 | 0.46 | 0.47 | 0.45 | 0.42 | 0.49 | 0.60 | 0.58 | 0.47 | 0.45 | 0.47 | 0.43 | 0.41 | 0.43 | |||||||
| Target Corp. | 0.20 | 0.09 | 0.08 | 0.07 | 0.11 | 0.04 | 0.05 | 0.05 | 0.27 | 0.25 | 0.38 | 0.42 | 0.42 | 0.31 | 0.46 | 0.32 | 0.18 | 0.06 | 0.12 | 0.09 | — | — | — | — | |||||||
| Walmart Inc. | 0.20 | 0.20 | 0.22 | 0.19 | 0.18 | 0.20 | 0.21 | 0.20 | 0.26 | 0.27 | 0.36 | 0.35 | 0.26 | 0.23 | 0.27 | 0.24 | 0.20 | 0.17 | 0.18 | 0.18 | — | — | — | — | |||||||
Based on: 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02), 10-K (reporting date: 2021-07-03), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-K (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-K (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-Q (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29).
1 Q4 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,020 ÷ 9,241 = 0.65
2 Click competitor name to see calculations.
- Quick Assets
- The total quick assets demonstrated fluctuations over the analyzed periods. Beginning at $5,033 million in late September 2018, the amount slightly declined to $4,695 million by mid-2019 before increasing to a peak of $9,092 million in late September 2020. Subsequently, there was a downward trend with some oscillations, reaching approximately $6,020 million by mid-2024. The data reveals a marked surge in quick assets during 2020, followed by a gradual decrease and stabilization in the subsequent years.
- Current Liabilities
- Current liabilities showed an overall increasing trajectory. Starting at $6,641 million in late September 2018, liabilities rose with some variability, reaching $8,989 million by October 2022 and further increasing to $9,241 million by mid-2024. Notable increments occur around late 2019 and maintain a generally higher level in recent periods compared to earlier years.
- Quick Ratio
- The quick ratio exhibited considerable variability aligning with the movements in quick assets and current liabilities. Initially, the ratio hovered around 0.7 to 0.8 through 2018 and 2019, followed by a sharp increase to values above 1.2 in late 2020, suggesting improved short-term liquidity at that time. From 2021 onward, the ratio declined steadily, stabilizing around the 0.65 to 0.7 range by mid-2024. This indicates that while liquidity improved markedly during 2020, it subsequently normalized to a lower level, reflecting a less liquid but consistent short-term financial position afterward.
- Overall Analysis
- The company experienced significant growth in quick assets during 2020, likely contributing to enhanced liquidity as reflected in the quick ratio exceeding 1.2 during that period. However, this was not sustained as quick assets decreased and current liabilities increased steadily, reducing the quick ratio thereafter. By mid-2024, liquidity measures point to a more conservative and stable short-term financial condition compared to the peak in 2020 but remain below the initial levels observed in 2018. The trends suggest management's response to varying market conditions, with notable liquidity strengthening during 2020 followed by normalization and increased liabilities over time.
Cash Ratio
Sysco Corp., cash ratio calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | Jul 3, 2021 | Mar 27, 2021 | Dec 26, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 696) | 598) | 962) | 569) | 745) | 758) | 500) | 438) | 867) | 876) | 1,374) | 2,068) | 3,007) | 4,896) | 5,767) | 5,986) | 6,059) | 2,241) | 525) | 455) | 513) | 522) | 745) | 790) | |||||||
| Total cash assets | 696) | 598) | 962) | 569) | 745) | 758) | 500) | 438) | 867) | 876) | 1,374) | 2,068) | 3,007) | 4,896) | 5,767) | 5,986) | 6,059) | 2,241) | 525) | 455) | 513) | 522) | 745) | 790) | |||||||
| Current liabilities | 9,241) | 8,366) | 8,254) | 8,454) | 8,540) | 8,981) | 8,389) | 8,959) | 8,750) | 8,372) | 7,594) | 7,738) | 7,320) | 7,008) | 6,717) | 7,168) | 6,718) | 6,625) | 6,932) | 6,101) | 6,103) | 6,500) | 6,750) | 6,641) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Cash ratio1 | 0.08 | 0.07 | 0.12 | 0.07 | 0.09 | 0.08 | 0.06 | 0.05 | 0.10 | 0.10 | 0.18 | 0.27 | 0.41 | 0.70 | 0.86 | 0.84 | 0.90 | 0.34 | 0.08 | 0.07 | 0.08 | 0.08 | 0.11 | 0.12 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.31 | 0.33 | 0.30 | 0.49 | 0.45 | 0.43 | 0.42 | 0.35 | 0.35 | 0.37 | 0.39 | 0.40 | 0.41 | 0.40 | 0.35 | 0.44 | 0.54 | 0.52 | 0.38 | 0.38 | 0.41 | 0.36 | 0.32 | 0.35 | |||||||
| Target Corp. | 0.20 | 0.09 | 0.08 | 0.07 | 0.11 | 0.04 | 0.05 | 0.05 | 0.27 | 0.25 | 0.38 | 0.42 | 0.42 | 0.31 | 0.46 | 0.32 | 0.18 | 0.06 | 0.12 | 0.09 | — | — | — | — | |||||||
| Walmart Inc. | 0.11 | 0.12 | 0.14 | 0.11 | 0.09 | 0.11 | 0.14 | 0.12 | 0.17 | 0.18 | 0.28 | 0.28 | 0.19 | 0.16 | 0.21 | 0.18 | 0.12 | 0.10 | 0.12 | 0.12 | — | — | — | — | |||||||
Based on: 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02), 10-K (reporting date: 2021-07-03), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26), 10-K (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-K (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-Q (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29).
1 Q4 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 696 ÷ 9,241 = 0.08
2 Click competitor name to see calculations.
The financial data reveals several notable trends in liquidity and short-term financial position over the analyzed quarters.
- Total Cash Assets
- Total cash assets show significant fluctuations across the periods. Initially, there is a general decline from 790 million USD in September 2018 to a low of 455 million USD in September 2019. Then, there is a sharp and pronounced increase reaching a peak of 6,059 million USD in June 2020. Following this peak, total cash assets decline steadily, dropping below 1,000 million USD by April 2022 and remaining below this threshold through mid-2024 with values generally between 400 million and 760 million USD.
- Current Liabilities
- Current liabilities remain relatively stable but exhibit a general upward trend. They start at 6,641 million USD in September 2018, fluctuate modestly around 6,500 to 7,400 million USD until early 2021, then gradually increase further, reaching over 9,200 million USD by June 2024. The gradual rise towards the end of the period indicates increasing short-term obligations.
- Cash Ratio
- The cash ratio follows a pattern similar to total cash assets but inversely related to current liabilities. Starting at 0.12 in September 2018, it declines to a low of 0.07 in September 2019. This is followed by a sharp increase to 0.9 in June 2020, coinciding with the peak in cash assets, indicating a temporarily enhanced liquidity position. After mid-2020, the cash ratio steadily declines to as low as 0.05 by October 2022, reflecting a reduced ability to cover current liabilities with cash. The ratio fluctuates moderately afterward, ending at 0.08 by June 2024, which remains low compared to earlier periods, suggesting a relatively weaker immediate liquidity position.
In summary, the data indicates a period of increased liquidity during mid-2020, as evidenced by the spike in cash assets and cash ratio, potentially related to a cash accumulation strategy or external circumstances. However, the sustained rise in current liabilities along with declining cash ratios in subsequent periods points to a more constrained liquidity position in later quarters. The total cash assets’ sharp increase and decrease suggest an unusual event or transaction temporarily boosting cash reserves. The persistent increase in current liabilities suggests growing short-term financial pressures, highlighting the importance of monitoring cash management and short-term obligations going forward.