Sysco Corporation (SYY)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 3,175,000 | 2,812,000 | 2,371,000 | 1,464,860 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,830,000 | 1,860,000 | 2,008,620 | 1,382,260 | 1,552,900 |
| Return on total capital | 0.00% | 170.70% | 140.00% | 171.53% | 94.33% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,830,000K)
= 0.00%
The analysis of Sysco Corporation's return on total capital (ROTC) over the specified periods reveals significant fluctuations. As of June 30, 2021, the ROTC was 94.33%, indicating a relatively high level of efficiency in generating profits from total capital employed. This metric experienced a substantial increase by June 30, 2022, reaching 171.53%, which suggests a notable improvement in the company's ability to leverage its total capital to generate earnings.
However, a decline is observed in the subsequent year, with the ROTC decreasing to 140.00% as of June 30, 2023. Despite this reduction, the ratio remained considerably strong, implying continued effective utilization of total capital, albeit at a somewhat diminished level compared to the previous year.
In the following year, the ROTC increased again to 170.70% by June 30, 2024, marking a resurgence in performance and indicating renewed efficiency in capital utilization.
The data for June 30, 2025, shows a ROTC of 0.00%, which could potentially reflect an anomaly, a data error, or a significant structural change in the company's capital structure or reporting methodology. Such a sharp decline warrants further investigation to understand underlying causes, such as asset impairments, extraordinary losses, or accounting adjustments.
Overall, the trend from 2021 to 2024 demonstrates considerable variability, with high levels of efficiency in generating returns from total capital. The abrupt drop in 2025 underscores the importance of examining the company's operational and financial changes during that period to fully comprehend the reasons behind this drastic shift.
Peer comparison
Jun 30, 2025