Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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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).
- Current ratio
- The current ratio exhibited notable fluctuations over the analyzed periods. Initially, the ratio increased sharply from 1.39 to a peak of 1.84 by June 27, 2020, indicating a strengthening short-term liquidity position. Subsequently, a gradual decline ensued, reaching a low of 1.2 in the fourth quarter of 2022. From this point, the ratio showed slight recovery, stabilizing around 1.2 to 1.3, before tapering off again to 1.2 by June 29, 2024. Overall, the trend suggests periods of enhanced liquidity followed by normalization to a moderate current ratio level.
- Quick ratio
- The quick ratio followed a pattern broadly similar to the current ratio but with more pronounced volatility. It rose markedly from 0.8 to a high of 1.33 in mid-2020, highlighting improved liquid asset coverage excluding inventories. Post-mid-2020, the quick ratio declined steadily, reaching its lowest point of 0.64 in late 2022. Minor improvements occurred thereafter, with ratios fluctuating in the range of 0.64 to 0.76 until early 2024, before a slight drop to 0.65 by mid-2024. This indicates that the company’s most liquid assets, excluding inventories, experienced a reduction in cushion relative to current liabilities over time.
- Cash ratio
- The cash ratio demonstrated the greatest variability among the liquidity metrics. Starting very low at 0.07-0.08 in late 2019, it surged substantially to peak near 0.9 in mid-2020, reflecting a significant increase in cash or cash equivalents relative to current liabilities. Following this peak, the cash ratio experienced a consistent decline through late 2022, falling below 0.1, and reaching a minimum of 0.05. From early 2023 onward, minor oscillations occurred, and the ratio stabilized around 0.07-0.12, ending at 0.08 in mid-2024. This pattern points to a temporary accumulation of cash reserves during the early stages of the pandemic period, followed by a reduction and stabilization at relatively low absolute cash coverage levels.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | ||||||||||||||||||||||||||
| Target Corp. | ||||||||||||||||||||||||||
| Walmart Inc. | ||||||||||||||||||||||||||
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).
1 Q4 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Over the observed periods, current assets displayed a general upward trend from late 2019 through mid-2020, increasing from approximately 8.5 billion USD to over 12.4 billion USD. This peak was followed by a gradual decline through mid-2021, reaching around 10.7 billion USD. From late 2021 to mid-2024, current assets fluctuated moderately within the range of 10 to 11.3 billion USD, indicating relative stabilization with minor variability.
- Current Liabilities
- Current liabilities showed an increasing trend overall, rising from roughly 6.1 billion USD in late 2019 to above 9.2 billion USD by mid-2024. Notably, there were fluctuations with some interim decreases, such as in late 2020 and early 2023, but the end trend points to increased short-term obligations. The pattern suggests a steady buildup of liabilities, potentially reflecting greater operational or financial commitments.
- Current Ratio
- The current ratio exhibited significant variability across the periods. It started at 1.39 in late 2019, dipped slightly in the following quarter, then rose sharply to a peak of 1.84 in mid-2020, coinciding with the highest current assets relative to liabilities. Subsequently, the ratio declined gradually, reaching a low near 1.2 by late 2022, indicating a reduction in short-term liquidity cushion. From early 2023 onwards, the current ratio stabilized within a narrow band of approximately 1.2 to 1.37, suggesting a consistent but modest margin of current assets over current liabilities.
- Overall Analysis
- The initial period shows an improving liquidity position due to rising current assets and a strong current ratio peak in mid-2020. However, the subsequent decline in current assets coupled with a rising trend in current liabilities contributed to a diminishing current ratio, reflecting tightening liquidity. The stabilization phase in recent quarters indicates a maintained but limited buffer to meet short-term obligations, which could be a point of focus for liquidity management 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||
| Accounts receivable, less allowances | ||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | ||||||||||||||||||||||||||
| Target Corp. | ||||||||||||||||||||||||||
| Walmart Inc. | ||||||||||||||||||||||||||
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).
1 Q4 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Quick Assets Trend
- Quick assets exhibited a general increase from late 2019 through mid-2020, rising from approximately $4.85 billion to a peak near $9 billion. This was followed by a steady decline beginning in the second half of 2020, with values decreasing to around $5.4 billion by the end of 2022. Early 2023 saw some recovery with assets rising to nearly $5.99 billion, but this was followed by a slight downward fluctuation through mid-2024, ending near $6 billion.
- Current Liabilities Trend
- Current liabilities showed a consistent upward trajectory throughout the period analyzed. Starting at roughly $6.1 billion in late 2019, liabilities increased steadily, surpassing $8 billion by early 2022. Continuing this rise, liabilities peaked above $9.2 billion by mid-2024. This steady increase highlights a growing obligation level over the timeframe.
- Quick Ratio Analysis
- The quick ratio, reflecting short-term liquidity, demonstrated notable fluctuation. Initially below 1.0 in 2019, it climbed sharply to exceed 1.3 by mid-2020, indicating strong liquidity during that time. However, from late 2020 onward, the ratio declined steadily, falling below 0.7 by late 2022 and remaining near that level into 2024. This downward trend in quick ratio indicates a relatively weaker liquidity position in recent periods compared to earlier in the timeline.
- Overall Insights
- The data reflects a period of increasing quick assets and liquidity in the first half of 2020, potentially signaling strategic asset management or cash accumulation. Concurrently, the ongoing rise in current liabilities throughout the period suggests an increasing reliance on short-term obligations. The declining quick ratio in recent years, despite some recovery in quick assets, points to rising liabilities outpacing liquid asset growth, thereby reducing the firm's capacity to cover short-term liabilities with its most liquid assets. This trend may warrant attention to liquidity management practices moving forward.
Cash Ratio
Sysco Corp., cash ratio calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | Jul 3, 2021 | Mar 27, 2021 | Dec 26, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Costco Wholesale Corp. | ||||||||||||||||||||||||||
| Target Corp. | ||||||||||||||||||||||||||
| Walmart Inc. | ||||||||||||||||||||||||||
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).
1 Q4 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Cash Assets
- The total cash assets show significant fluctuations over the observed periods. Initially, cash assets increased sharply from 455 million to a peak of 6,059 million in June 2020, indicating a substantial liquidity buildup. After this peak, a downward trend ensued, with cash assets declining to levels below 1,000 million for an extended duration from early 2022 through late 2022, reaching a low of 438 million in October 2022. Subsequently, a moderate recovery occurred, with cash assets rising again towards mid-2024, but still remaining well below the earlier peak, fluctuating between approximately 569 million and 758 million in the recent quarters.
- Current Liabilities
- Current liabilities increased steadily over the period, starting from 6,101 million and generally rising to above 9,000 million by mid-2024. There were no significant decreases in current liabilities, indicating that short-term obligations have consistently grown, reaching 9,241 million in June 2024. The upward trend in current liabilities demonstrates either increased operational activities necessitating more short-term financing or a greater reliance on short-term debt.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, shows notable volatility. It surged from a low of 0.07 in September 2019 to a peak of 0.9 in June 2020, reflecting a period when cash assets were strong relative to liabilities. Following this peak, the ratio declined steadily, falling to as low as 0.05 in October 2022. Despite some minor improvements in subsequent quarters, the ratio remained generally low, fluctuating between 0.07 and 0.12 in recent periods. This trend suggests that the company’s liquidity buffer in relation to its current liabilities has weakened significantly since mid-2020.
- Overall Insights
- The data indicates a period of exceptional cash accumulation in mid-2020, likely influenced by specific strategic or environmental factors, followed by a pronounced reduction in cash reserves. Concurrently, current liabilities have steadily increased, which, combined with declining cash ratios, suggests growing short-term financial obligations that are less supported by cash on hand. The decreasing cash ratio points to a potential pressure on liquidity management and possibly increased financial risk if the trend continues. The recent modest recovery in cash levels does not fully mitigate the overall downtrend relative to liabilities, indicating ongoing challenges in maintaining robust liquidity.