Sysco Corporation (SYY)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.40% | 18.53% | 18.28% | 17.95% | 18.24% |
| Operating profit margin | 3.80% | 4.06% | 3.98% | 3.42% | 2.82% |
| Pretax margin | 2.97% | 3.25% | 2.99% | 2.54% | 1.14% |
| Net profit margin | 2.25% | 2.48% | 2.32% | 1.98% | 1.02% |
The analyzed profitability ratios of Sysco Corporation over the period from June 30, 2021, to June 30, 2025, demonstrate a generally positive trend with some fluctuations.
Gross profit margin exhibited relative stability, starting at 18.24% in 2021 and experiencing minor declines and increases throughout the period. It decreased slightly to 17.95% in 2022 but then recovered to 18.28% in 2023, reaching 18.53% in 2024 before experiencing a slight decline to 18.40% in 2025. This indicates consistent management of cost of goods sold and a stable pricing environment.
Operating profit margin showed more significant improvement over the period, rising from 2.82% in 2021 to a peak of 4.06% in 2024. The upward trend reflects enhanced operational efficiency and cost control measures, although it experienced a minor decline to 3.80% in 2025, suggesting some challenges in maintaining the previous year's operational margins.
Pretax margin followed a similar upward trajectory, increasing from 1.14% in 2021 to 3.25% in 2024, before decreasing slightly to 2.97% in 2025. This suggests improved profitability before tax considerations, with some recent pressure possibly factors such as increased expenses or shifts in tax obligations.
Net profit margin demonstrated consistent growth from 1.02% in 2021 to 2.48% in 2024, although it declined to 2.25% in 2025. The overall increasing trend indicates effective management of expenses relative to revenue, translating into greater net profitability over the years.
In summary, Sysco Corporation has experienced a steady improvement in most profitability ratios, especially in operating profit and pretax margins, indicating ongoing efficiency gains and better cost management. The slight decline in margins in 2025 suggests potential margin compression or external pressures, but the company’s profitability remains at higher levels compared to the early part of the period.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.53% | 12.85% | 13.31% | 10.62% | 6.76% |
| Return on assets (ROA) | 6.83% | 7.85% | 7.76% | 6.15% | 2.45% |
| Return on total capital | 0.00% | 170.70% | 140.00% | 171.53% | 94.33% |
| Return on equity (ROE) | 99.89% | 105.11% | 88.12% | 98.32% | 33.76% |
The analysis of Sysco Corporation's profitability ratios over the specified period reveals notable trends and variations. The operating return on assets (Operating ROA) exhibited a positive trajectory from 6.76% on June 30, 2021, to a peak of 13.31% on June 30, 2023. This indicates an improvement in operational efficiency and asset utilization during this timeframe, with a slight decline to 12.85% in June 2024, followed by a further decrease to 11.53% in June 2025, suggesting a moderation in operational profitability.
The return on assets (ROA), which measures overall net income generated per dollar of total assets, increased significantly from 2.45% in 2021 to 7.76% in 2023. This trend underscores an enhancement in the company's ability to generate profit from its asset base. However, a marginal decline to 7.85% in 2024 and further to 6.83% in 2025 indicates some erosion of asset efficiency or profit margins in the later years.
The return on total capital indicates a volatile pattern, starting at 94.33% in 2021, rising sharply to 171.53% in 2022, then decreasing to 140.00% in 2023. The subsequent increase to 170.70% in 2024 suggests fluctuating effectiveness in capital utilization, possibly influenced by changes in leverage or capital structure. Notably, the ratio drops to zero in 2025, which may reflect an accounting anomaly or significant changes in capital structure, such as debt restructuring or equity impairment.
Finally, the return on equity (ROE) demonstrates substantial growth from 33.76% in 2021 to a peak of 98.32% in 2022, indicating an extraordinary increase in shareholders' return, likely driven by enhanced profitability or increased leverage. The ROE remains high in subsequent years at 88.12% (2023), 105.11% (2024), and nearly stable at 99.89% (2025), reflecting strong shareholder returns and efficient use of equity capital.
Overall, Sysco's profitability ratios portray a company that experienced significant improvement in operational and net profitability during 2022 and 2023, with some signs of moderation or structural changes in subsequent years. The high and fluctuating return on equity points to effective utilization of shareholder investments, albeit with potential concerns regarding capital structure adjustments in later years.