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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Sysco Corp., economic profit calculation

US$ in millions

12 months ended:	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020	Jun 29, 2019
Net operating profit after taxes (NOPAT)¹	2,500)	2,164)	1,757)	861)	665)	1,850)
Cost of capital²	11.81%	11.95%	12.15%	11.64%	10.33%	12.22%
Invested capital³	16,003)	14,268)	14,109)	14,339)	18,092)	12,842)

Economic profit⁴	610)	460)	43)	(808)	(1,204)	281)

Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,500 – 11.81% × 16,003 = 610

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Sysco Corp. economic profit increased from 2022 to 2023 and from 2023 to 2024.

Sysco Corp., NOPAT calculation

US$ in millions

12 months ended:	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020	Jun 29, 2019
Net earnings	1,955)	1,770)	1,359)	524)	215)	1,674)
Deferred income tax expense (benefit)¹	26)	(16)	(64)	(158)	(191)	(127)
Increase (decrease) in allowance for credit losses²	8)	(25)	(47)	(217)	307)	2)
Increase (decrease) in equity equivalents³	34)	(42)	(111)	(375)	115)	(124)
Interest expense	607)	527)	624)	880)	408)	360)
Interest expense, operating lease liability⁴	40)	25)	21)	21)	15)	19)
Adjusted interest expense	647)	552)	645)	901)	423)	380)
Tax benefit of interest expense⁵	(136)	(116)	(135)	(189)	(89)	(80)
Adjusted interest expense, after taxes⁶	511)	436)	509)	712)	334)	300)
Net operating profit after taxes (NOPAT)	2,500)	2,164)	1,757)	861)	665)	1,850)

Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for credit losses.

³ Addition of increase (decrease) in equity equivalents to net earnings.

⁴ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 963 × 4.19% = 40

⁵ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 647 × 21.00% = 136

⁶ Addition of after taxes interest expense to net earnings.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Sysco Corp. NOPAT increased from 2022 to 2023 and from 2023 to 2024.

Sysco Corp., cash operating taxes calculation

US$ in millions

12 months ended:	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020	Jun 29, 2019
Income tax provision	610)	515)	388)	61)	78)	332)
Less: Deferred income tax expense (benefit)	26)	(16)	(64)	(158)	(191)	(127)
Add: Tax savings from interest expense	136)	116)	135)	189)	89)	80)
Cash operating taxes	720)	648)	588)	408)	358)	538)

Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Sysco Corp. cash operating taxes increased from 2022 to 2023 and from 2023 to 2024.

Sysco Corp., invested capital calculation (financing approach)

US$ in millions

	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020	Jun 29, 2019
Current maturities of long-term debt	469)	63)	581)	495)	1,544)	41)
Long-term debt, excluding current maturities	11,513)	10,348)	10,067)	10,588)	12,902)	8,122)
Operating lease liability¹	963)	755)	742)	737)	631)	541)
Total reported debt & leases	12,945)	11,166)	11,390)	11,820)	15,078)	8,704)
Shareholders’ equity	1,860)	2,009)	1,382)	1,553)	1,159)	2,503)
Net deferred tax (assets) liabilities²	(100)	(118)	(127)	(205)	(108)	91)
Allowance for credit losses³	54)	46)	71)	118)	335)	28)
Equity equivalents⁴	(46)	(72)	(57)	(88)	227)	120)
Accumulated other comprehensive (income) loss, net of tax⁵	1,339)	1,253)	1,482)	1,149)	1,711)	1,600)
Noncontrolling interest	31)	33)	32)	35)	34)	35)
Adjusted shareholders’ equity	3,184)	3,222)	2,840)	2,648)	3,131)	4,257)
Marketable securities⁶	(126)	(121)	(120)	(130)	(116)	(120)
Invested capital	16,003)	14,268)	14,109)	14,339)	18,092)	12,842)

Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of equity equivalents to shareholders’ equity.

⁵ Removal of accumulated other comprehensive income.

⁶ Subtraction of marketable securities.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Sysco Corp. invested capital increased from 2022 to 2023 and from 2023 to 2024.

Sysco Corp., cost of capital calculations

Jun 29, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	37,685)	37,685)	÷	50,048)	=	0.75	0.75	×	14.50%	=	10.92%
Debt³	11,400)	11,400)	÷	50,048)	=	0.23	0.23	×	4.62% × (1 – 21.00%)	=	0.83%
Operating lease liability⁴	963)	963)	÷	50,048)	=	0.02	0.02	×	4.19% × (1 – 21.00%)	=	0.06%
Total:	50,048)					1.00					11.81%

Based on: 10-K (reporting date: 2024-06-29).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jul 1, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	35,224)	35,224)	÷	45,779)	=	0.77	0.77	×	14.50%	=	11.15%
Debt³	9,800)	9,800)	÷	45,779)	=	0.21	0.21	×	4.44% × (1 – 21.00%)	=	0.75%
Operating lease liability⁴	755)	755)	÷	45,779)	=	0.02	0.02	×	3.31% × (1 – 21.00%)	=	0.04%
Total:	45,779)					1.00					11.95%

Based on: 10-K (reporting date: 2023-07-01).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jul 2, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	42,326)	42,326)	÷	53,568)	=	0.79	0.79	×	14.50%	=	11.45%
Debt³	10,500)	10,500)	÷	53,568)	=	0.20	0.20	×	4.26% × (1 – 21.00%)	=	0.66%
Operating lease liability⁴	742)	742)	÷	53,568)	=	0.01	0.01	×	2.85% × (1 – 21.00%)	=	0.03%
Total:	53,568)					1.00					12.15%

Based on: 10-K (reporting date: 2022-07-02).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jul 3, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	40,449)	40,449)	÷	54,486)	=	0.74	0.74	×	14.50%	=	10.76%
Debt³	13,300)	13,300)	÷	54,486)	=	0.24	0.24	×	4.40% × (1 – 21.00%)	=	0.85%
Operating lease liability⁴	737)	737)	÷	54,486)	=	0.01	0.01	×	2.84% × (1 – 21.00%)	=	0.03%
Total:	54,486)					1.00					11.64%

Based on: 10-K (reporting date: 2021-07-03).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 27, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	29,241)	29,241)	÷	46,171)	=	0.63	0.63	×	14.50%	=	9.18%
Debt³	16,300)	16,300)	÷	46,171)	=	0.35	0.35	×	4.03% × (1 – 21.00%)	=	1.12%
Operating lease liability⁴	631)	631)	÷	46,171)	=	0.01	0.01	×	2.37% × (1 – 21.00%)	=	0.03%
Total:	46,171)					1.00					10.33%

Based on: 10-K (reporting date: 2020-06-27).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 29, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	37,642)	37,642)	÷	46,782)	=	0.80	0.80	×	14.50%	=	11.66%
Debt³	8,600)	8,600)	÷	46,782)	=	0.18	0.18	×	3.58% × (1 – 21.00%)	=	0.52%
Operating lease liability⁴	541)	541)	÷	46,782)	=	0.01	0.01	×	3.58% × (1 – 21.00%)	=	0.03%
Total:	46,782)					1.00					12.22%

Based on: 10-K (reporting date: 2019-06-29).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Sysco Corp., economic spread ratio calculation, comparison to benchmarks

	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020	Jun 29, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	610)	460)	43)	(808)	(1,204)	281)
Invested capital²	16,003)	14,268)	14,109)	14,339)	18,092)	12,842)
Performance Ratio
Economic spread ratio³	3.81%	3.22%	0.31%	-5.64%	-6.65%	2.19%
Benchmarks
Economic Spread Ratio, Competitors⁴
Costco Wholesale Corp.	9.67%	4.82%	8.87%	7.25%	3.45%	5.34%
Dollar General Corp.	2.80%	8.11%	7.53%	8.01%	4.38%	4.27%
Target Corp.	2.03%	0.25%	13.18%	3.65%	2.21%	2.40%
Walmart Inc.	3.94%	1.45%	1.99%	3.36%	3.39%	-1.88%

Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 610 ÷ 16,003 = 3.81%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Sysco Corp. economic spread ratio improved from 2022 to 2023 and from 2023 to 2024.

Sysco Corp., economic profit margin calculation, comparison to benchmarks

	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020	Jun 29, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	610)	460)	43)	(808)	(1,204)	281)
Sales	78,844)	76,325)	68,636)	51,298)	52,893)	60,114)
Performance Ratio
Economic profit margin²	0.77%	0.60%	0.06%	-1.58%	-2.28%	0.47%
Benchmarks
Economic Profit Margin, Competitors³
Costco Wholesale Corp.	1.28%	0.71%	1.26%	1.08%	0.61%	0.86%
Dollar General Corp.	1.91%	5.30%	4.73%	4.96%	3.02%	3.02%
Target Corp.	0.66%	0.07%	3.80%	1.21%	0.78%	0.84%
Walmart Inc.	0.95%	0.36%	0.55%	0.99%	1.09%	-0.59%

Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Sales
= 100 × 610 ÷ 78,844 = 0.77%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Sysco Corp. economic profit margin improved from 2022 to 2023 and from 2023 to 2024.

Sysco Corp. (NYSE:SYY)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin