Sysco Corporation (SYY)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 18.40% | 18.35% | 18.43% | 18.42% | 18.49% | 18.49% | 18.38% | 18.37% | 18.28% | 18.15% | 18.07% | 18.00% | 17.95% | 17.92% | 17.95% | 18.06% | 18.24% | 18.19% | 18.40% | 18.59% |
| Operating profit margin | 3.80% | 3.93% | 3.99% | 4.02% | 4.06% | 4.10% | 4.09% | 4.05% | 3.99% | 3.76% | 3.59% | 3.43% | 3.41% | 3.25% | 3.10% | 2.95% | 2.80% | 0.76% | 0.35% | 1.01% |
| Pretax margin | 2.97% | 3.10% | 3.14% | 3.19% | 3.25% | 3.49% | 3.51% | 3.06% | 2.99% | 2.61% | 2.45% | 2.57% | 2.54% | 1.89% | 1.59% | 1.49% | 1.14% | -0.67% | -0.93% | -0.06% |
| Net profit margin | 2.25% | 2.36% | 2.40% | 2.44% | 2.48% | 2.66% | 2.69% | 2.35% | 2.32% | 2.05% | 1.93% | 2.03% | 1.98% | 1.52% | 1.29% | 1.22% | 1.02% | -0.56% | -0.74% | -0.04% |
The profitability ratios of Sysco Corporation over the observed period reflect a generally stable and modest improvement in profitability margins, indicating consistent operational performance.
Gross profit margin has shown a gradual upward trend from 18.59% as of September 30, 2020, to approximately 18.40% by December 31, 2024, with a slight peak at 18.49% in March and June 2024. This indicates that the company has maintained its ability to retain a relatively steady percentage of revenue after cost of goods sold, reflective of stable gross margin management amidst fluctuating operational conditions.
The operating profit margin has exhibited a steady increase over time, rising from a mere 1.01% in September 2020 to approximately 4.10% as of March 2024 before demonstrating a slight plateau around 3.80% to 4.02% in subsequent periods. This consistent improvement suggests that Sysco has been effective in controlling operating expenses relative to revenue, enhancing its core profitability.
Pretax margin shows a transition from negative margins in 2020, with values around -0.06% to -0.93%, gradually shifting into positive territory in 2021. From March 2021 onwards, pretax margins stabilized around 1.14% to 3.51%, with a gradual upward trend, indicating improved efficiency in generating profit before taxes. Despite some minor fluctuations, the pretax margin reflects ongoing operational gains and better cost management.
Net profit margin has followed a similar pattern, moving from negative values of -0.04% in September 2020 to positive margins around 2.69% by December 2023. The net margin demonstrates a modest but consistent increase, peaking at approximately 2.69%, then stabilizing around 2.25% to 2.36% through mid-2025. This stability underscores effective management of overall expenses, including taxes and interest, contributing to sustained profitability.
Overall, Sysco Corporation exhibits a trend of incremental improvements across its profitability ratios, particularly from 2020 to 2024. The steady increase in gross, operating, pretax, and net profit margins indicates successful operational strategies aimed at enhancing profitability margins, with the company maintaining its ability to generate consistent profit relative to revenue over the analyzed period.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.54% | 12.06% | 12.71% | 12.39% | 12.85% | 12.93% | 12.81% | 13.36% | 13.33% | 12.51% | 11.95% | 11.00% | 10.59% | 9.60% | 8.78% | 7.46% | 6.71% | 1.52% | 0.71% | 2.20% |
| Return on assets (ROA) | 6.83% | 7.24% | 7.63% | 7.50% | 7.85% | 8.40% | 8.42% | 7.77% | 7.76% | 6.81% | 6.43% | 6.51% | 6.15% | 4.48% | 3.67% | 3.10% | 2.45% | -1.11% | -1.50% | -0.09% |
| Return on total capital | 118.42% | 163.14% | 157.69% | 143.74% | 170.12% | 156.56% | 135.75% | 135.74% | 139.95% | 157.94% | 160.85% | 220.11% | 171.48% | 165.21% | 157.33% | 101.11% | 94.31% | 21.09% | 7.15% | 32.99% |
| Return on equity (ROE) | 99.89% | 99.31% | 95.95% | 87.97% | 105.11% | 98.86% | 86.60% | 85.05% | 88.13% | 98.16% | 98.85% | 129.68% | 98.30% | 75.67% | 64.33% | 40.96% | 33.76% | -17.58% | -23.66% | -1.65% |
Based on the provided data on Sysco Corporation’s profitability ratios, several trends and notable observations can be identified.
Operating Return on Assets (Operating ROA):
The Operating ROA exhibits a consistent upward trend from the beginning of the analyzed period, starting at 2.20% as of September 30, 2020, and progressively increasing to a peak of approximately 13.36% by September 30, 2023. This indicates improved operational efficiency and effective utilization of assets to generate operating income over this period. The slight decline to 12.81% at the end of 2023, followed by stabilization around 12.85% in mid-2024, suggests a period of plateauing but sustained operational performance within this timeframe. The ratios further show a modest decline toward mid-2025, reaching about 11.54%, possibly reflecting normalization or competitive pressures.
Return on Assets (ROA):
The ROA trend reflects a recovery from negative values observed in 2020 (-0.09%) and early 2021, with a notable rebound to positive figures starting June 30, 2021, at 2.45%, and reaching up to 8.42% by the end of 2023. This indicates an overall improvement in the company's ability to generate net income from its assets, aligning with enhanced operational efficiency. The decline from around 8.4% to approximately 7% by mid-2025 suggests some reduction in net profitability relative to total assets in recent periods.
Return on Total Capital:
The ratio shows significant variability, with a remarkable peak in September 2022 at over 220%, indicating highly effective capital utilization during that period, possibly driven by leveraging or extraordinary income. The fluctuations thereafter, moving downward to approximately 118% by June 2025, denote a normalization of returns, suggesting that the surge in profitability was likely temporary or driven by specific operational factors.
Return on Equity (ROE):
The ROE data highlights a tumultuous pattern. Negative figures in 2020 and early 2021 reflect periods of underperformance or losses, with the bottom at -23.66% in December 2020. Subsequently, the ROE experiences a sharp recovery from early 2021 onward, reaching a high of around 129.68% in September 2022, attributable to substantial net income relative to shareholders’ equity, possibly aided by leveraging. Afterward, the ROE stabilizes around mid-2024 at approximately 87.97%, remaining high but showing signs of moderation. The upward trajectory into 2025, nearing 100%, indicates sustained shareholder return levels.
Overall Summary:
The profitability ratios collectively depict a trajectory of recovery and growth following initial challenges observed in 2020. The consistent increase in Operating ROA and ROA through 2021 and 2022 underscores improved operational and net profitability efficiencies. The volatility in Return on Total Capital suggests periods of exceptional performance likely influenced by leverage or extraordinary gains. The ROE trajectory reveals a pattern of initial loss, subsequent rapid recovery, and stabilization at high levels, reflecting strong shareholder returns driven by operational improvements and leverage use. Overall, Sysco's profitability ratios demonstrate positive momentum with some periods of fluctuation, suggesting ongoing operational strength but also potential normalization in profitability levels in recent periods.