Stock Analysis on Net
Stock Analysis on Net

Sysco Corp. (NYSE:SYY)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Sysco Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jun 29, 2024 105.11% = 7.85% × 13.40
Jul 1, 2023 88.13% = 7.76% × 11.36
Jul 2, 2022 98.30% = 6.15% × 15.98
Jul 3, 2021 33.76% = 2.45% × 13.79
Jun 27, 2020 18.60% = 0.95% × 19.53
Jun 29, 2019 66.90% = 9.32% × 7.18

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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Sysco Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 29, 2024 105.11% = 2.48% × 3.16 × 13.40
Jul 1, 2023 88.13% = 2.32% × 3.34 × 11.36
Jul 2, 2022 98.30% = 1.98% × 3.11 × 15.98
Jul 3, 2021 33.76% = 1.02% × 2.40 × 13.79
Jun 27, 2020 18.60% = 0.41% × 2.34 × 19.53
Jun 29, 2019 66.90% = 2.79% × 3.35 × 7.18

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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Sysco Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 29, 2024 105.11% = 0.76 × 0.81 × 4.02% × 3.16 × 13.40
Jul 1, 2023 88.13% = 0.77 × 0.81 × 3.68% × 3.34 × 11.36
Jul 2, 2022 98.30% = 0.78 × 0.74 × 3.45% × 3.11 × 15.98
Jul 3, 2021 33.76% = 0.90 × 0.40 × 2.86% × 2.40 × 13.79
Jun 27, 2020 18.60% = 0.73 × 0.42 × 1.33% × 2.34 × 19.53
Jun 29, 2019 66.90% = 0.83 × 0.85 × 3.94% × 3.35 × 7.18

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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Sysco Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jun 29, 2024 7.85% = 2.48% × 3.16
Jul 1, 2023 7.76% = 2.32% × 3.34
Jul 2, 2022 6.15% = 1.98% × 3.11
Jul 3, 2021 2.45% = 1.02% × 2.40
Jun 27, 2020 0.95% = 0.41% × 2.34
Jun 29, 2019 9.32% = 2.79% × 3.35

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).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Sysco Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 29, 2024 7.85% = 0.76 × 0.81 × 4.02% × 3.16
Jul 1, 2023 7.76% = 0.77 × 0.81 × 3.68% × 3.34
Jul 2, 2022 6.15% = 0.78 × 0.74 × 3.45% × 3.11
Jul 3, 2021 2.45% = 0.90 × 0.40 × 2.86% × 2.40
Jun 27, 2020 0.95% = 0.73 × 0.42 × 1.33% × 2.34
Jun 29, 2019 9.32% = 0.83 × 0.85 × 3.94% × 3.35

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).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Sysco Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 29, 2024 2.48% = 0.76 × 0.81 × 4.02%
Jul 1, 2023 2.32% = 0.77 × 0.81 × 3.68%
Jul 2, 2022 1.98% = 0.78 × 0.74 × 3.45%
Jul 3, 2021 1.02% = 0.90 × 0.40 × 2.86%
Jun 27, 2020 0.41% = 0.73 × 0.42 × 1.33%
Jun 29, 2019 2.79% = 0.83 × 0.85 × 3.94%

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).

The primary reason for the increase in net profit margin ratio over 2024 year is the increase in operating profitability measured by EBIT margin ratio.