Stock Analysis on Net
Stock Analysis on Net

Sysco Corp. (NYSE:SYY)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 28, 2024.

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.

Paying user area

Try for free

Sysco Corp. pages available for free this week:

The data is hidden behind: . Unhide it.

Get access

This is a one-time payment. There is no automatic renewal.

We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Apple Pay Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Balance-Sheet-Based Accruals Ratio

Sysco Corp., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Jun 29, 2024 Jul 1, 2023 Jul 2, 2022 Jul 3, 2021 Jun 27, 2020 Jun 29, 2019
Operating Assets
Total assets
Less: Cash and cash equivalents
Operating assets
Operating Liabilities
Total liabilities
Less: Current maturities of long-term debt
Less: Long-term debt, excluding current maturities
Operating liabilities
 
Net operating assets1
Balance-sheet-based aggregate accruals2
Financial Ratio
Balance-sheet-based accruals ratio3
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Balance-Sheet-Based Accruals Ratio, Sector
Consumer Staples Distribution & Retail
Balance-Sheet-Based Accruals Ratio, Industry
Consumer Staples

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).

1 2024 Calculation
Net operating assets = Operating assets – Operating liabilities
= – =

2 2024 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2024 – Net operating assets2023
= – =

3 2024 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × ÷ [( + ) ÷ 2] =

4 Click competitor name to see calculations.

Net Operating Assets
Net operating assets demonstrated a consistent upward trend over the five-year period. Starting at 9,580 million US dollars in mid-2020, the figure increased marginally to 9,663 million in 2021 before showing more significant growth in subsequent years. By mid-2024, net operating assets reached 13,177 million US dollars, representing a substantial increase of approximately 37.5% from 2020 to 2024.
Balance-Sheet-Based Aggregate Accruals
The aggregate accruals showed considerable fluctuations throughout the period. In 2020, accruals were negative at -608 million US dollars, indicating a possible reversal or adjustment of prior accruals. In 2021, this swung to a positive figure of 83 million US dollars, followed by a sharp rise to 1,531 million in 2022. The value declined again to 513 million in 2023, before increasing notably to 1,470 million in 2024. This volatile pattern suggests varying accrual activities and potential inconsistencies in earnings quality over these years.
Balance-Sheet-Based Accruals Ratio
The accruals ratio, expressed as a percentage of net operating assets, reflected similar volatility. Initially, in 2020, the ratio was negative at -6.15%, coinciding with the negative aggregate accruals. It then rose to a modest 0.86% in 2021, followed by a sharp increase to 14.68% in 2022. The ratio subsequently decreased to 4.48% in 2023 and increased again to 11.81% in 2024. These fluctuations imply instability in the proportion of accruals relative to operating assets, which could point to variable earnings quality or shifts in accounting policies and estimates.

Cash-Flow-Statement-Based Accruals Ratio

Sysco Corp., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Jun 29, 2024 Jul 1, 2023 Jul 2, 2022 Jul 3, 2021 Jun 27, 2020 Jun 29, 2019
Net earnings
Less: Net cash provided by operating activities
Less: Net cash used for investing activities
Cash-flow-statement-based aggregate accruals
Financial Ratio
Cash-flow-statement-based accruals ratio1
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Cash-Flow-Statement-Based Accruals Ratio, Sector
Consumer Staples Distribution & Retail
Cash-Flow-Statement-Based Accruals Ratio, Industry
Consumer Staples

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).

1 2024 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × ÷ [( + ) ÷ 2] =

2 Click competitor name to see calculations.

Net Operating Assets
The net operating assets demonstrate a consistent upward trend over the five-year period. Starting from 9,580 million US dollars in mid-2020, there is a steady increase each year, reaching 13,177 million US dollars by mid-2024. This growth indicates an expansion in the company’s operating asset base, reflecting possible investments in operations or growth in operational holdings.
Cash-flow-statement-based Aggregate Accruals
The aggregate accruals exhibit considerable volatility throughout the analyzed period. In mid-2020 and mid-2021, negative accrual values (-647 million and -951 million US dollars respectively) suggest a conservative reporting or timing differences between earnings and cash flows. A significant positive spike occurs in mid-2022, with accruals rising sharply to 1,446 million US dollars, which may indicate increased accrual-based earnings components or unusual adjustments. Subsequently, accruals decline again to negative territory in mid-2023 (-313 million US dollars) before increasing to 928 million US dollars by mid-2024. This fluctuation points towards variability in earnings quality from accruals over time.
Cash-flow-statement-based Accruals Ratio
The accruals ratio, representing accruals as a percentage of net operating assets, mirrors the variability seen in aggregate accruals. The ratio is negative in the first two years (-6.54% in 2020 and -9.88% in 2021), indicating accruals decreased relative to net operating assets. This shifts to a positive 13.86% in mid-2022, reflecting a substantial increase in accruals relative to asset size, which could be indicative of less conservative accounting or more aggressive earnings recognition. The ratio again declines to a slightly negative -2.73% in mid-2023, and then increases to 7.46% in mid-2024. Such fluctuations suggest inconsistency in earnings quality, with potential impacts on the reliability of accrual-based earnings components.