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Sysco (SYY) Altman Z-Score : 5.35 (As of Jul. 24, 2024)


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What is Sysco Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 5.38 is strong.

Sysco has a Altman Z-Score of 5.35, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Sysco's Altman Z-Score or its related term are showing as below:

SYY' s Altman Z-Score Range Over the Past 10 Years
Min: 4.05   Med: 5.49   Max: 6.94
Current: 5.38

During the past 13 years, Sysco's highest Altman Z-Score was 6.94. The lowest was 4.05. And the median was 5.49.


Sysco Altman Z-Score Historical Data

The historical data trend for Sysco's Altman Z-Score 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.

* Premium members only.

Sysco Altman Z-Score Chart

Sysco Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.20 4.17 4.68 5.47 5.64

Sysco Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Altman Z-Score 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 5.57 5.64 5.48 5.37 5.49

Competitive Comparison of Sysco's Altman Z-Score

For the Food Distribution subindustry, Sysco's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Retail - Defensive Industry

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

* The bar in red indicates where Sysco's Altman Z-Score falls into.



Sysco Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Sysco's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1149+1.4*0.4815+3.3*0.1334+0.6*1.5703+1.0*3.157
=5.35

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2024:
Total Assets was $24,712 Mil.
Total Current Assets was $11,205 Mil.
Total Current Liabilities was $8,366 Mil.
Retained Earnings was $11,899 Mil.
Pre-Tax Income was 553.813 + 545.118 + 662.608 + 957.94 = $2,719 Mil.
Interest Expense was -157.853 + -149.68 + -134.334 + -135.629 = $-577 Mil.
Revenue was 19379.5 + 19287.942 + 19620.454 + 19728.216 = $78,016 Mil.
Market Cap (Today) was $35,456 Mil.
Total Liabilities was $22,579 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(11204.875 - 8366.271)/24712.34
=0.1149

X2=Retained Earnings/Total Assets
=11898.772/24712.34
=0.4815

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2719.479 - -577.496)/24712.34
=0.1334

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=35456.353/22578.83
=1.5703

X5=Revenue/Total Assets
=78016.112/24712.34
=3.157

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Sysco has a Altman Z-Score of 5.35 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Sysco  (NYSE:SYY) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Sysco Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Sysco's Altman Z-Score 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

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