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Sysco (SYY) Interest Coverage : 4.57 (As of Mar. 2024)


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What is Sysco Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sysco's Operating Income for the three months ended in Mar. 2024 was $722 Mil. Sysco's Interest Expense for the three months ended in Mar. 2024 was $-158 Mil. Sysco's interest coverage for the quarter that ended in Mar. 2024 was 4.57. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sysco's Interest Coverage or its related term are showing as below:

SYY' s Interest Coverage Range Over the Past 10 Years
Min: 1.64   Med: 5.81   Max: 12.83
Current: 5.53


SYY's Interest Coverage is ranked worse than
60.82% of 245 companies
in the Retail - Defensive industry
Industry Median: 8.29 vs SYY: 5.53

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Sysco Interest Coverage Historical Data

The historical data trend for Sysco's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Sysco Interest Coverage Chart

Sysco Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.47 1.84 1.64 3.76 5.77

Sysco Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.16 7.12 5.98 4.68 4.57

Competitive Comparison of Sysco's Interest Coverage

For the Food Distribution subindustry, Sysco's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sysco's Interest Coverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Sysco's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sysco's Interest Coverage falls into.



Sysco Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sysco's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Sysco's Interest Expense was $-527 Mil. Its Operating Income was $3,039 Mil. And its Long-Term Debt & Capital Lease Obligation was $11,004 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2023 )/Interest Expense (A: Jun. 2023 )
=-1*3038.549/-526.752
=5.77

Sysco's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Sysco's Interest Expense was $-158 Mil. Its Operating Income was $722 Mil. And its Long-Term Debt & Capital Lease Obligation was $12,904 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*722.046/-157.853
=4.57

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Sysco  (NYSE:SYY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Sysco Interest Coverage Related Terms

Thank you for viewing the detailed overview of Sysco's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Sysco (SYY) Business Description

Address
1390 Enclave Parkway, Houston, TX, USA, 77077-2099
Sysco is the largest U.S. foodservice distributor with 17% share of the highly fragmented $350 billion domestic market. Sysco distributes roughly 500,000 food and nonfood products to restaurants (62% of fiscal 2023 revenue), education and government buildings (8%), travel and leisure (8%), healthcare facilities (7%) and other locations (15%) where individuals consume away-from-home meals. In fiscal 2023, 70% of the firm's revenue was derived from its U.S. foodservice operations, while its international (18%), quick-service logistics (10%), and other (2%) segments made up the difference.
Executives
Sheila Talton director C/O ACCO BRANDS CORPORATION, 300 TOWER PARKWAY, LINCOLNSHIRE IL 60201
Jennifer L Johnson officer: SVP and CAO 942 S. SHADY GROVE ROAD, MEMPHIS TN 38120
Victoria L Gutierrez officer: SVP 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Daniel Purefoy officer: SVP, Chief Supply Chain Off 33 KINGSWAY, LONDON X0 WC2B 6UF
Neil Russell officer: Interim CFO 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Kenny K Cheung officer: EVP and CFO HERTZ GLOBAL HOLDINGS, INC., 8501 WILLIAMS ROAD, ESTERO FL 33928
Greg D Bertrand officer: SVP 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Kevin Hourican officer: President and CEO ONE CVS DRIVE, WOONSOCKET RI 02895
Scott B. Stone officer: VP, Finance and interim CAO 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Paulo Peereboom officer: EVP 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Aaron E Alt officer: EVP and CFO 3001 COLORADO BLVD., DENTON TX 76210
Anita A Zielinski officer: SVP & CAO 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
James Chris Jasper officer: SVP 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Jill Golder director 305 HARTMANN DRIVE, LEBANON TN 37087
Ali Dibadj director C/O JANUS HENDERSON GROUP, 151 DETROIT STREET, DENVER CO 80206

Sysco (SYY) Headlines

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