Sysco Corp. (NYSE:SYY)

Debt to Equity Ratio

The debt to equity ratio exhibits significant volatility over the periods analyzed. Starting at 3.54 in late 2019, it escalates sharply to a peak of 12.47 by mid-2020, indicating a substantial increase in debt relative to equity. Subsequently, the ratio gradually declines to values near 5.1 by mid-2023, followed by a moderate rise toward 6.44 by mid-2024. This pattern suggests an initial leveraging response, possibly due to external pressures, followed by a partial deleveraging trend.

Debt to Equity Including Operating Lease Liability

This metric follows a similar trajectory to the standard debt to equity ratio but consistently remains slightly higher, reflecting the impact of operating lease liabilities on overall leverage. The peak value of 13.01 in mid-2020 aligns with the highest point in the traditional ratio. The subsequent improvement mirrors the trend seen in the standard debt to equity ratio, reaching 6.96 by mid-2024.

Debt to Capital Ratio

The debt to capital ratio remains relatively stable, fluctuating within a narrow range between 0.78 and 0.93 throughout the period. Notably, it peaks around mid-2020 (0.93) in correspondence with heightened leverage, and then slightly decreases toward values around 0.84-0.87 toward mid-2024. This stability indicates that debt continues to represent a consistent share of total capital despite fluctuations in equity levels.

Debt to Capital Including Operating Lease Liability

This ratio behaves similarly to the standard debt to capital ratio, with marginally higher values due to the inclusion of lease liabilities. It peaks around mid-2020 at 0.93 and decreases slightly thereafter, settling around 0.86 by mid-2024. This suggests that operating leases contribute measurably to the company's capital structure but do not drastically alter overall leverage trends.

Debt to Assets Ratio

The debt to assets ratio shows moderate variation, rising from 0.46 in late 2019 to around 0.64 mid-2020, then declining to values in the vicinity of 0.46 to 0.49 from 2022 onwards. This indicates an increased reliance on debt to fund assets during mid-2020, followed by a modest reduction and stabilization at lower levels. The inclusion of operating lease liabilities raises the ratio slightly but follows a consistent trend.

Debt to Assets Including Operating Lease Liability

Including operating lease liabilities, the debt to assets ratio follows the same pattern with somewhat elevated values, peaking at 0.67 during mid-2020. The ratio decreases and stabilizes near 0.52 by mid-2024. This augmentation confirms the influence of lease liabilities on total asset financing.

Financial Leverage

Financial leverage, reflecting total assets relative to equity, demonstrates a marked increase from approximately 7.7 in late 2019 to nearly 20 by mid-2020. This indicates a period of significantly increased risk and debt load relative to equity. After mid-2020, financial leverage steadily declines to near 10.3 by mid-2023 but then exhibits a moderate uptick to 13.4 by mid-2024, indicating some renewed leveraging activity.

Interest Coverage Ratio

The interest coverage ratio shows a steep decline from levels above 6 in late 2019 to a low point of 0.21 by the end of 2020, signaling strained ability to cover interest expenses. This is followed by a gradual recovery, improving steadily to values near 5.2 by mid-2024. The improvement suggests strengthening earnings or operational performance enabling better coverage of interest obligations over time.

The analysis of the financial data reveals notable patterns and shifts over the observed periods concerning total debt, shareholders’ equity, and the debt to equity ratio.

Total Debt

The total debt exhibited a general upward trend from the beginning of the period, increasing sharply around early 2020, peaking in the mid-year of 2020. Following this peak, there was a gradual decline until mid-2023. From mid-2023 onwards, total debt shows a rising trend again, reaching around the previous high levels by mid-2024.

Shareholders’ Equity

Shareholders’ equity experienced significant fluctuation throughout the periods. It initially declined severely during the early quarters of 2020, hitting a low around mid-2020. Afterward, there was a recovery phase lasting through 2021 and into mid-2023, where equity values increased substantially, even surpassing earlier levels by mid-2023. However, toward the latter part of the data, equity slightly decreased, indicating potential volatility or financial restructuring.

Debt to Equity Ratio

The debt to equity ratio demonstrated major variation consistent with the movements in debt and equity. It spiked considerably during early to mid-2020, reflecting the simultaneous rise in total debt and a sharp drop in shareholders' equity. Following this period, the ratio declined steadily through 2021 and 2022, correlating with equity recovery and controlled debt levels. In the subsequent quarters toward 2024, the ratio increased once more, indicating a renewed pressure of debt relative to equity despite the prior improvement.

Overall, the data suggest a period of financial stress during 2020, characterized by elevated debt levels and reduced equity, followed by a phase of recovery and stabilization. Nevertheless, emerging trends in late 2023 into 2024 point to increasing leverage, which could imply renewed strategic financing initiatives or other financial pressures impacting the company's capital structure.

Total Debt (including operating lease liability)

The total debt displayed an overall increasing trend from late 2019 through mid-2020, rising sharply from approximately $9.3 billion to over $15 billion by June 2020. Following this peak, debt levels generally declined, reaching a low around $11.1 billion in mid-2023. However, there was a resurgence in debt towards the end of 2023 and into mid-2024, with values climbing back above $13 billion. The fluctuations suggest periods of both increased leverage and subsequent deleveraging initiatives.

Shareholders’ Equity

Shareholders’ equity experienced a notable decline from nearly $2.5 billion in September 2019 to a low near $1.16 billion in June 2020. After this trough, equity gradually improved over the subsequent three years, rising steadily with some variability to just above $2.4 billion in mid-2023. Thereafter, a moderate decline occurred through mid-2024, bringing equity down to about $1.86 billion. This pattern indicates periods of diminished net asset value followed by recovery and stabilization, although equity did not consistently return to its pre-2020 peak.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio showed considerable volatility reflecting the interplay between total debt and equity. Starting at a ratio of about 3.8 at the end of 2019, it escalated sharply to a peak of over 13 by mid-2020, coinciding with the significant drop in equity and surge in debt. This peak indicates heightened financial leverage during this period. Subsequently, the ratio declined gradually, falling below 6 by mid-2023 as equity recovered and debt decreased. Nonetheless, the ratio increased again towards mid-2024, reaching nearly 7, indicating a renewed rise in leverage. Overall, the ratio's fluctuations suggest changing risk profiles and capital structure adjustments over the analyzed period.

Total Debt

The total debt exhibited an upward trend from late 2019 to mid-2020, rising sharply from $8.7 billion to a peak of approximately $14.4 billion. After this peak in June 2020, the debt level showed a general decline, reaching near $10.4 billion by mid-2023. However, from late 2023 to mid-2024, there was a resurgence in debt levels, increasing again towards $12.0 billion. This pattern suggests a significant borrowing increase during the early phase of 2020, followed by a gradual deleveraging before another increase in debt obligations towards 2024.

Total Capital

Total capital followed a similar trajectory as total debt, ascending sharply from $11.2 billion at the end of 2019 to a maximum of $15.6 billion by June 2020. Subsequently, it declined steadily to around $12.4 billion by mid-2022, before experiencing modest fluctuations and a gradual increase into early 2024, peaking near $14.5 billion in late 2023 before slightly decreasing thereafter. This movement indicates a capital base that expanded alongside debt during the early 2020 period and then contracted as debt was reduced, with some recovery in capital levels later.

Debt to Capital Ratio

The debt to capital ratio started high at 0.78 in late 2019, climbed steadily to reach its highest level around 0.93 in mid-2020, reflecting a peak in leverage. Following this peak, the ratio trended downward to a low near 0.83 in mid-2023, consistent with the reduction in total debt relative to capital. However, from mid-2023 onward, the ratio increased again to about 0.87 by mid-2024, signaling a slight rise in leverage. Overall, the ratio shows that leverage intensified sharply during 2020 and has experienced some moderation since, with a recent uptick towards the end of the observed period.

Overall Analysis

The data indicates a substantial increase in both debt and capital during early 2020, likely linked to extraordinary financing needs. The subsequent period showed efforts to reduce debt and stabilize capital, leading to lower leverage ratios. The recent trends suggest a cautious increase in debt levels and leverage, possibly in response to changing financial or operational conditions. The company's leverage remains relatively high, consistently above 0.8, highlighting a persistent reliance on debt financing as a significant part of its capital structure throughout the analyzed periods.

The analysis of the financial leverage metrics over the observed periods reveals several notable trends. Total debt, inclusive of operating lease liabilities, exhibited an overall upward trajectory from late 2019 through mid-2020, reaching a peak around June 2020. Following this peak, the debt levels showed a gradual decline until mid-2023, with some fluctuations thereafter. Specifically, total debt increased significantly from approximately $9.3 billion in September 2019 to over $15 billion in June 2020, reflecting possibly increased borrowing or lease obligations during that time. After June 2020, the debt declined to roughly $11.2 billion by July 2023, before experiencing a modest rise again towards late 2023 and mid-2024, stabilizing around $12.9 billion.

Total capital, also including operating lease liabilities, mirrored a somewhat similar pattern, rising sharply from about $11.8 billion in late 2019 to a peak above $16.2 billion by mid-2020. Subsequently, capital levels decreased steadily, reaching a low of approximately $12.6 billion in late 2022 before gradually increasing again to roughly $15.2 billion by late 2023. A slight decline is noted again in mid-2024, with total capital around $14.8 billion.

When examining the debt to capital ratio, which indicates the proportion of debt relative to total capital, a clear upward trend is seen from 0.79 in late 2019 to a high of approximately 0.93 by mid-2020. This suggests an increased reliance on debt financing during the first half of 2020. Following this peak, the ratio declines moderately and fluctuates in a range between roughly 0.84 and 0.91 through late 2023 and into mid-2024. The more recent ratios indicate a modest reduction in leverage compared to the mid-2020 peak but still reflect a relatively high level of debt relative to capital.

In summary, the company increased its leverage significantly through mid-2020, likely influenced by external circumstances requiring greater debt or lease obligations. Post mid-2020, the company managed to reduce and stabilize its leverage, though maintaining it at relatively elevated levels. Total capital trends indicate some contraction post-peak, with a subsequent moderate recovery in recent quarters. The debt to capital ratio remains close to 0.85-0.87, demonstrating sustained leverage without dramatic deleveraging activities.

Total Debt

Increased sharply to mid-2020, peaked at around $15 billion, then declined steadily until mid-2023, followed by a slight increase and stabilization around $12.9 billion into mid-2024.

Total Capital

Rose significantly through mid-2020 to over $16 billion, declined to roughly $12.6 billion by late 2022, then recovered moderately to approximately $15 billion by late 2023, with a slight decline thereafter.

Debt to Capital Ratio

Rose from 0.79 to a peak of 0.93 in mid-2020, then moderated and fluctuated between 0.84 and 0.91, indicating maintained but somewhat reduced leverage post-peak.

Total Debt

The total debt exhibited an overall upward trend from late 2019 through mid-2020, rising from approximately 8.7 billion USD to a peak near 14.4 billion USD. Subsequently, a gradual decline occurred through mid-2023, reducing debt levels to about 10.4 billion USD. However, starting in the latter part of 2023 into mid-2024, there was a moderate increase again, with total debt reaching roughly 12 billion USD by June 2024.

Total Assets

Total assets increased steadily over the entire period. From around 19 billion USD at the end of September 2019, assets grew to over 24.9 billion USD by June 2024. This growth was consistent with only minor fluctuations, indicating an expansion in the company’s asset base throughout the examined timeframe.

Debt to Assets Ratio

The debt to assets ratio followed a distinct pattern, initially increasing from 0.46 to a high of approximately 0.64 by mid-2020. This increase reflected the sharp rise in debt relative to assets during that period. After mid-2020, the ratio steadily declined and stabilized around 0.48 to 0.50 through mid-2023, suggesting improved leverage conditions. Toward late 2023 and early 2024, the ratio modestly increased to just under 0.50 again, consistent with the recent rise in debt levels relative to assets.

Summary

The company experienced notable debt accumulation during the early stages of 2020, likely influenced by external factors affecting liquidity management. While assets consistently grew over time, the elevated debt levels initially increased leverage risk, as reflected in the debt to assets ratio. The subsequent deleveraging phase that lasted until mid-2023 improved the financial structure, although the recent uptick in debt and ratio suggests a partial reversal. Attention to leverage and asset growth trends will remain important for assessing future financial stability.

Total Debt (including operating lease liability)

The total debt exhibited a notable increase from September 2019 through June 2020, rising from approximately $9.3 billion to over $15 billion. This peak in mid-2020 was followed by a general downtrend until mid-2023, where debt levels decreased to around $11.2 billion. However, from mid-2023 onward, the total debt again trended upward, reaching approximately $13 billion by June 2024. The fluctuations suggest periods of borrowing possibly related to external economic conditions or strategic financial planning.

Total Assets

The total assets showed a consistent upward trend throughout the period observed, rising from around $18.9 billion in late 2019 to approximately $24.9 billion by mid-2024. Despite some minor fluctuations, the overall increase reflects asset growth, which may indicate investment in operations, acquisitions, or asset revaluation strategies. The steady growth in assets contrasts with the more volatile debt levels.

Debt to Assets Ratio (including operating lease liability)

This ratio increased sharply from 0.49 in late 2019 to a peak of 0.67 by mid-2020, indicating a significant rise in leverage relative to assets during that period. Subsequently, the ratio gradually declined, stabilizing around the 0.50 to 0.53 range from early 2021 through mid-2024. The initial surge in leverage followed by stabilization suggests an aggressive borrowing phase possibly linked to external pressures (e.g., economic uncertainty), with subsequent deleveraging or asset growth helping to improve the financial balance.

Summary of Trends

The data reflects a period of increased financial leverage in the first half of 2020, likely corresponding to external economic events requiring liquidity or capital raising. Despite the peak in debt levels and leverage at that time, total assets continued to grow steadily, indicating ongoing investment and asset base expansion. Following this period, the company appears to have taken steps to reduce leverage, as shown by decreasing debt levels and a lower debt to assets ratio, though recent quarters indicate some renewed borrowing activity. Overall, the financial posture evolved from heightened leverage conditions towards a more moderate and controlled debt structure while maintaining asset growth.

Total Assets

The total assets generally exhibited an upward trend over the analyzed period, increasing from approximately $18.96 billion to $24.92 billion. There were some fluctuations, with assets rising steadily through mid-2020 and maintaining levels slightly above $22 billion until early 2023, after which a notable increase was observed, reaching a peak close to $24.9 billion by mid-2024.

Shareholders’ Equity

Shareholders’ equity showed considerable volatility throughout the period. It started at around $2.46 billion but declined sharply in early 2020, dropping to approximately $1.16 billion by June 2020. After a period of partial recovery, equity values fluctuated between $1.1 billion and $1.6 billion through 2022. Beginning in 2023, equity levels improved more significantly, peaking near $2.13 billion by late 2023 before a slight decline took place in early 2024, ending at about $1.86 billion.

Financial Leverage Ratio

Financial leverage exhibited substantial variability, reflecting shifts in the capital structure. The ratio increased markedly from around 7.7 in late 2019 to nearly 19.5 by mid-2020, indicating a higher reliance on debt relative to equity during that period. Subsequently, leverage decreased, fluctuating through values between approximately 14 and 20 over the following years. Starting in early 2023, a downward trend in leverage was noticeable, reaching a low near 10.3 by early 2024, before a slight rise toward mid-2024.

Overall Analysis

The data suggest that the company experienced increased asset growth alongside volatile equity positions during the observed intervals. The significant fluctuations in shareholders' equity and financial leverage ratios indicate periods of higher financial risk and potential restructuring within the capital framework. The notable rise in financial leverage during 2020 likely corresponds with heightened liabilities, possibly in response to external economic pressures. More recently, trends point to stabilization efforts, with equity recovering and leverage decreasing, which may imply a strengthening of the financial position and a shift towards reduced debt dependency.

Earnings before interest and tax (EBIT)

The EBIT shows significant volatility over the analyzed quarters. Starting at a high point of 665 million US dollars in September 2019, EBIT declines sharply to a negative value of -572 million US dollars by June 2020, indicating a period of operational challenges. This negative performance is followed by a recovery phase with fluctuating positive values, peaking at 1,094 million US dollars in July 2023. Despite occasional decreases, the general trend from mid-2020 onward is upward, demonstrating improved operational profitability and resilience.

Interest Expense

Interest expense remains relatively stable in the initial periods, fluctuating around the 80 to 150 million US dollars range. Notably, there is a substantial spike to 441 million US dollars in July 2021, indicating a possible significant increase in debt service obligations or refinancing activities during that quarter. Following this peak, interest expense returns to historical levels, maintaining a slightly increasing trend reaching 165 million US dollars by June 2024. This gradual increase could suggest incremental borrowing or rising interest rates.

Interest Coverage Ratio

The interest coverage ratio exhibits considerable fluctuation, reflecting the variability in EBIT and interest expense. Beginning at a healthy 6.78 in September 2019, it declines sharply to below 1.0 in September 2020, reaching a low of 0.21 in December 2020. This indicates significant difficulty in covering interest obligations during this period. Thereafter, the ratio steadily improves, surpassing 5.0 by early 2023 and peaking at 5.9 in September 2023. The improvement indicates enhanced ability to meet interest payments comfortably as EBIT recovers and stabilizes, despite a modest increase in interest expense.

Summary of Financial Trends

The financial data reflects a period of stress and recovery. The sharp drop in EBIT during early 2020 aligns with challenges impacting operating profitability. Concurrently, the interest coverage ratio indicates increasing strain in servicing debt. The significant interest expense spike mid-2021 suggests a one-time adjustment or financial restructuring. Subsequent quarters reveal a recovery trajectory characterized by rising EBIT and improved interest coverage, pointing to restored operational health and improved financial stability. Nevertheless, the gradual increase in interest expense toward the end of the period should be monitored for potential impacts on future interest coverage and financial risk.