Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Sysco Corp., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Sysco Corp. inventory turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Sysco Corp. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Sysco Corp. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Sysco Corp. working capital turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Sysco Corp. number of days of inventory outstanding improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Sysco Corp. operating cycle improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Sysco Corp. cash conversion cycle improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Inventory Turnover
Sysco Corp., inventory turnover calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 64,236) | 62,370) | 56,316) | 41,941) | 42,992) | 48,705) | |
| Inventories | 4,678) | 4,481) | 4,437) | 3,695) | 3,095) | 3,216) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 13.73 | 13.92 | 12.69 | 11.35 | 13.89 | 15.14 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | 11.92 | 12.77 | 11.13 | 12.01 | 11.84 | 11.66 | |
| Target Corp. | 6.54 | 6.09 | 5.39 | 6.21 | 6.10 | 5.61 | |
| Walmart Inc. | 8.93 | 8.20 | 7.59 | 9.35 | 8.88 | 8.70 | |
| Inventory Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.75 | 7.96 | 9.41 | 9.05 | 8.77 | |
| Inventory Turnover, Industry | |||||||
| Consumer Staples | — | 7.58 | 7.07 | 8.12 | 7.63 | 7.52 | |
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
Inventory turnover = Cost of sales ÷ Inventories
= 64,236 ÷ 4,678 = 13.73
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Sysco Corp. inventory turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Receivables Turnover
Sysco Corp., receivables turnover calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Sales | 78,844) | 76,325) | 68,636) | 51,298) | 52,893) | 60,114) | |
| Accounts receivable, less allowances | 5,324) | 5,092) | 4,839) | 3,782) | 2,894) | 4,182) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 14.81 | 14.99 | 14.18 | 13.57 | 18.28 | 14.38 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | 91.74 | 104.03 | 99.39 | 106.52 | 105.30 | 97.30 | |
| Target Corp. | 118.75 | 92.03 | 125.28 | 146.43 | 154.88 | 117.77 | |
| Walmart Inc. | 73.06 | 76.37 | 68.57 | 85.21 | 82.74 | 81.22 | |
| Receivables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 83.53 | 78.82 | 93.82 | 91.25 | 86.88 | |
| Receivables Turnover, Industry | |||||||
| Consumer Staples | — | 33.10 | 32.13 | 35.70 | 34.56 | 32.22 | |
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
Receivables turnover = Sales ÷ Accounts receivable, less allowances
= 78,844 ÷ 5,324 = 14.81
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Sysco Corp. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Payables Turnover
Sysco Corp., payables turnover calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 64,236) | 62,370) | 56,316) | 41,941) | 42,992) | 48,705) | |
| Accounts payable | 6,290) | 6,026) | 5,753) | 4,885) | 3,447) | 4,315) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 10.21 | 10.35 | 9.79 | 8.59 | 12.47 | 11.29 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | 11.45 | 12.16 | 11.17 | 10.49 | 10.23 | 11.38 | |
| Target Corp. | 6.43 | 6.10 | 4.84 | 5.15 | 5.53 | 5.46 | |
| Walmart Inc. | 8.63 | 8.63 | 7.76 | 8.55 | 8.40 | 8.19 | |
| Payables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.95 | 7.94 | 8.40 | 8.36 | 8.34 | |
| Payables Turnover, Industry | |||||||
| Consumer Staples | — | 6.97 | 6.39 | 6.68 | 6.75 | 6.84 | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 64,236 ÷ 6,290 = 10.21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Sysco Corp. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
Working Capital Turnover
Sysco Corp., working capital turnover calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 11,043) | 10,608) | 10,483) | 10,734) | 12,348) | 8,142) | |
| Less: Current liabilities | 9,241) | 8,540) | 8,750) | 7,320) | 6,718) | 6,103) | |
| Working capital | 1,802) | 2,068) | 1,733) | 3,414) | 5,630) | 2,038) | |
| Sales | 78,844) | 76,325) | 68,636) | 51,298) | 52,893) | 60,114) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 43.75 | 36.91 | 39.60 | 15.03 | 9.39 | 29.49 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 103.53 | 319.10 | 3,000.81 | 49.82 | 602.22 | |
| Target Corp. | — | — | — | 146.43 | — | — | |
| Walmart Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | — | — | — | — | — | |
| Working Capital Turnover, 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
Working capital turnover = Sales ÷ Working capital
= 78,844 ÷ 1,802 = 43.75
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Sysco Corp. working capital turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Average Inventory Processing Period
Sysco Corp., average inventory processing period calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 13.73 | 13.92 | 12.69 | 11.35 | 13.89 | 15.14 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 27 | 26 | 29 | 32 | 26 | 24 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Costco Wholesale Corp. | 31 | 29 | 33 | 30 | 31 | 31 | |
| Target Corp. | 56 | 60 | 68 | 59 | 60 | 65 | |
| Walmart Inc. | 41 | 45 | 48 | 39 | 41 | 42 | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 42 | 46 | 39 | 40 | 42 | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Staples | — | 48 | 52 | 45 | 48 | 49 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 13.73 = 27
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Sysco Corp. number of days of inventory outstanding improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Average Receivable Collection Period
Sysco Corp., average receivable collection period calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 14.81 | 14.99 | 14.18 | 13.57 | 18.28 | 14.38 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 25 | 24 | 26 | 27 | 20 | 25 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Costco Wholesale Corp. | 4 | 4 | 4 | 3 | 3 | 4 | |
| Target Corp. | 3 | 4 | 3 | 2 | 2 | 3 | |
| Walmart Inc. | 5 | 5 | 5 | 4 | 4 | 4 | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 4 | 5 | 4 | 4 | 4 | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Staples | — | 11 | 11 | 10 | 11 | 11 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 14.81 = 25
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Sysco Corp., operating cycle calculation, comparison to benchmarks
No. days
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 27 | 26 | 29 | 32 | 26 | 24 | |
| Average receivable collection period | 25 | 24 | 26 | 27 | 20 | 25 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 52 | 50 | 55 | 59 | 46 | 49 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | 35 | 33 | 37 | 33 | 34 | 35 | |
| Target Corp. | 59 | 64 | 71 | 61 | 62 | 68 | |
| Walmart Inc. | 46 | 50 | 53 | 43 | 45 | 46 | |
| Operating Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 46 | 51 | 43 | 44 | 46 | |
| Operating Cycle, Industry | |||||||
| Consumer Staples | — | 59 | 63 | 55 | 59 | 60 | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 27 + 25 = 52
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Sysco Corp. operating cycle improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Average Payables Payment Period
Sysco Corp., average payables payment period calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 10.21 | 10.35 | 9.79 | 8.59 | 12.47 | 11.29 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 36 | 35 | 37 | 43 | 29 | 32 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Costco Wholesale Corp. | 32 | 30 | 33 | 35 | 36 | 32 | |
| Target Corp. | 57 | 60 | 75 | 71 | 66 | 67 | |
| Walmart Inc. | 42 | 42 | 47 | 43 | 43 | 45 | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 41 | 46 | 43 | 44 | 44 | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Staples | — | 52 | 57 | 55 | 54 | 53 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.21 = 36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Sysco Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 27 | 26 | 29 | 32 | 26 | 24 | |
| Average receivable collection period | 25 | 24 | 26 | 27 | 20 | 25 | |
| Average payables payment period | 36 | 35 | 37 | 43 | 29 | 32 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 16 | 15 | 18 | 16 | 17 | 17 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | 3 | 3 | 4 | -2 | -2 | 3 | |
| Target Corp. | 2 | 4 | -4 | -10 | -4 | 1 | |
| Walmart Inc. | 4 | 8 | 6 | 0 | 2 | 1 | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5 | 5 | 0 | 0 | 2 | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Staples | — | 7 | 6 | 0 | 5 | 7 | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 27 + 25 – 36 = 16
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Sysco Corp. cash conversion cycle improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |