Analysis of Geographic Areas
Sysco Corp. operates in 5 regions: United States; Canada; United Kingdom; France; and Other.
Area Asset Turnover
Sysco Corp., asset turnover by geographic area
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| United States | 15.35 | 16.77 | 16.89 | 13.53 | 12.81 | 14.36 |
| Canada | 16.46 | 17.41 | 15.10 | 10.98 | 12.40 | 13.94 |
| United Kingdom | 10.19 | 11.20 | 11.48 | 6.20 | 9.73 | 11.58 |
| France | 5.56 | 5.30 | 4.65 | 3.39 | 3.96 | 4.79 |
| Other | 11.85 | 12.11 | 12.56 | 8.86 | 10.26 | 12.08 |
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).
Analysis of geographic asset turnover reveals a consistent systemic pattern across all operating regions between 2019 and 2024. A synchronized decline in asset efficiency is observed from 2019 through 2021, followed by a sharp recovery in 2022. While most regions experienced a slight deceleration in turnover ratios between 2023 and 2024, North American markets continue to demonstrate significantly higher capital efficiency compared to European operations.
- United States
- The United States maintains a high level of asset productivity, with ratios fluctuating between a low of 12.81 in 2020 and a peak of 16.89 in 2022. Following this peak, a gradual moderation is noted, ending at 15.35 in 2024.
- Canada
- Canadian operations exhibited the most significant volatility and growth. After reaching a period low of 10.98 in 2021, the turnover ratio accelerated sharply to peak at 17.41 in 2023, surpassing the United States in efficiency during that period, before settling at 16.46 in 2024.
- United Kingdom
- The United Kingdom experienced a severe contraction in asset turnover, dropping from 11.58 in 2019 to 6.20 in 2021. Although a strong recovery occurred in 2022 (11.48), the ratio has since entered a slow downward trend, closing at 10.19 in 2024.
- France
- France consistently reports the lowest asset turnover ratios of all geographic areas. However, it is the only region to show an uninterrupted upward trajectory from 2021 through 2024, increasing from a low of 3.39 to a period high of 5.56.
- Other Regions
- The remaining geographic areas followed the general global trend, bottoming at 8.86 in 2021 and recovering to 12.56 in 2022. A marginal, steady decline has been observed over the last two fiscal years, ending at 11.85 in 2024.
Comparative analysis indicates a stark divide in operational efficiency between the North American and European segments. The United States and Canada consistently maintain ratios above 10.00, whereas France operates at a significantly lower efficiency threshold. The simultaneous dip across all regions in 2021 suggests a common external pressure, while the subsequent recovery highlights a resilient return to operational capacity, albeit with varying degrees of sustainability across different territories.
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Area Asset Turnover: United States
Sysco Corp.; United States; area asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 63,931) | 62,404) | 56,511) | 42,610) | 42,804) | 48,257) |
| Plant and equipment at cost, less accumulated depreciation | 4,165) | 3,721) | 3,346) | 3,148) | 3,341) | 3,362) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 15.35 | 16.77 | 16.89 | 13.53 | 12.81 | 14.36 |
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 2024 Calculation
Area asset turnover = Sales ÷ Plant and equipment at cost, less accumulated depreciation
= 63,931 ÷ 4,165 = 15.35
The financial performance of the United States operations exhibits a period of initial volatility followed by a robust expansion in revenue and a subsequent increase in capital investment. Sales experienced a notable decline between 2019 and 2021, dropping from 48,257 million to 42,610 million, before entering a strong growth trajectory that peaked at 63,931 million by June 2024.
- Sales Performance
- A significant recovery is observed starting in 2022, where sales increased by approximately 32.6% compared to the previous year. This growth trend continued through 2024, indicating a substantial expansion in market reach or pricing power within the domestic region.
- Fixed Asset Investment
- Net plant and equipment remained relatively stagnant or declined slightly between 2019 and 2021, reaching a low of 3,148 million. From 2022 onward, a consistent upward trend in capital expenditures is evident, with the asset base growing to 4,165 million by June 2024, suggesting strategic investments in infrastructure to support higher sales volumes.
- Area Asset Turnover Analysis
- The asset turnover ratio fluctuated in alignment with sales volatility, decreasing from 14.36 in 2019 to 12.81 in 2020. A peak efficiency was reached in 2022 with a ratio of 16.89, reflecting a period where revenue growth significantly outpaced asset accumulation. However, the ratio declined to 15.35 by June 2024, indicating that the recent acceleration in plant and equipment investment has outpaced the incremental growth in sales.
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Area Asset Turnover: Canada
Sysco Corp.; Canada; area asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 5,993) | 5,828) | 5,094) | 3,907) | 4,105) | 4,660) |
| Plant and equipment at cost, less accumulated depreciation | 364) | 335) | 337) | 356) | 331) | 334) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 16.46 | 17.41 | 15.10 | 10.98 | 12.40 | 13.94 |
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Plant and equipment at cost, less accumulated depreciation
= 5,993 ÷ 364 = 16.46
The financial performance in the Canadian region is characterized by a period of revenue contraction followed by a significant recovery and an overall increase in asset utilization efficiency.
- Sales Performance
- Revenue experienced a downward trend between 2019 and 2021, decreasing from US$ 4,660 million to US$ 3,907 million. This was followed by a period of robust growth, with sales climbing to US$ 5,094 million in 2022 and reaching a peak of US$ 5,993 million by June 29, 2024.
- Fixed Asset Base
- Plant and equipment, net of accumulated depreciation, remained relatively constant over the six-year period. Values fluctuated minimally between a low of US$ 331 million in 2020 and a high of US$ 364 million in 2024, indicating a stable capital investment strategy in the region.
- Area Asset Turnover Analysis
- The asset turnover ratio closely tracked the trajectory of sales. After declining from 13.94 in 2019 to 10.98 in 2021, the ratio surged to 15.10 in 2022 and reached its highest point of 17.41 in 2023, before moderating to 16.46 in 2024. Because the asset base remained stable while sales grew, the increase in the turnover ratio demonstrates a marked improvement in the efficiency of asset usage to generate revenue.
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Area Asset Turnover: United Kingdom
Sysco Corp.; United Kingdom; area asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 3,760) | 3,340) | 2,859) | 1,707) | 2,482) | 3,134) |
| Plant and equipment at cost, less accumulated depreciation | 369) | 298) | 249) | 275) | 255) | 271) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 10.19 | 11.20 | 11.48 | 6.20 | 9.73 | 11.58 |
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 2024 Calculation
Area asset turnover = Sales ÷ Plant and equipment at cost, less accumulated depreciation
= 3,760 ÷ 369 = 10.19
The United Kingdom operations experienced significant volatility in revenue and asset utilization between 2019 and 2024, characterized by a sharp contraction followed by a robust recovery and expansion phase.
- Sales Performance
- Revenue exhibited a marked decline from US$ 3,134 million in 2019 to a trough of US$ 1,707 million in 2021. Following this period, a strong recovery trend emerged, with sales increasing consistently over the subsequent three years to reach US$ 3,760 million by June 2024, representing a significant increase over pre-2020 levels.
- Fixed Asset Investment
- Net plant and equipment remained relatively stable between 2019 and 2022, fluctuating between US$ 249 million and US$ 275 million. A notable acceleration in capital investment occurred in the final two years of the period, with assets rising to US$ 298 million in 2023 and further increasing to US$ 369 million by June 2024.
- Area Asset Turnover Efficiency
- The asset turnover ratio closely mirrored the trajectory of sales, falling from 11.58 in 2019 to a minimum of 6.20 in 2021. While the ratio rebounded sharply to 11.48 in 2022, a gradual downward trend is observed in the most recent periods, concluding at 10.19 in 2024. This recent compression indicates that the growth in the fixed asset base has outpaced the growth in sales revenue during the 2023-2024 period.
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Area Asset Turnover: France
Sysco Corp.; France; area asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 1,712) | 1,591) | 1,413) | 1,098) | 1,223) | 1,582) |
| Plant and equipment at cost, less accumulated depreciation | 308) | 300) | 304) | 323) | 309) | 330) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 5.56 | 5.30 | 4.65 | 3.39 | 3.96 | 4.79 |
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 2024 Calculation
Area asset turnover = Sales ÷ Plant and equipment at cost, less accumulated depreciation
= 1,712 ÷ 308 = 5.56
The financial performance in France is characterized by a significant recovery in sales and a corresponding improvement in asset utilization efficiency. Between 2019 and 2024, the region experienced a period of contraction followed by a sustained growth phase, while the capital investment in plant and equipment remained relatively constant.
- Revenue Trends
- Sales experienced a sharp decline from US$ 1,582 million in 2019 to a low of US$ 1,098 million in 2021. This downward trend reversed in 2022, with revenues climbing steadily to reach US$ 1,712 million by June 29, 2024, marking a substantial recovery and an increase over the 2019 baseline.
- Fixed Asset Stability
- Net plant and equipment values remained stable throughout the analyzed period, fluctuating within a narrow range between US$ 300 million and US$ 330 million. The lack of significant volatility in the asset base indicates that operational capacity was maintained without major capital expenditures or divestments despite the fluctuations in revenue.
- Area Asset Turnover Efficiency
- The asset turnover ratio closely mirrored the trajectory of sales due to the stability of the fixed asset base. Efficiency declined from 4.79 in 2019 to a minimum of 3.39 in 2021, reflecting a period of underutilization. However, the ratio rebounded strongly, reaching a peak of 5.56 by 2024. This indicates a marked increase in the ability to generate sales from existing fixed assets, resulting in higher operational efficiency compared to the initial 2019 levels.
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Area Asset Turnover: Other
Sysco Corp.; Other; area asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 3,448) | 3,162) | 2,759) | 1,976) | 2,280) | 2,481) |
| Plant and equipment at cost, less accumulated depreciation | 291) | 261) | 220) | 223) | 222) | 205) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 11.85 | 12.11 | 12.56 | 8.86 | 10.26 | 12.08 |
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 2024 Calculation
Area asset turnover = Sales ÷ Plant and equipment at cost, less accumulated depreciation
= 3,448 ÷ 291 = 11.85
The financial performance of the "Other" geographic area is characterized by a period of volatility followed by a sustained recovery and growth phase. Between 2019 and 2021, there was a notable contraction in revenue and asset efficiency, which reversed sharply starting in 2022, leading to a period of expansion in both sales volume and capital investment.
- Sales Performance
- A V-shaped trajectory is observed in revenue, with sales declining from 2,481 million USD in 2019 to a trough of 1,976 million USD in 2021. This downward trend was followed by a robust recovery, with sales increasing consistently to reach 3,448 million USD by June 29, 2024. The growth from the 2021 low to the 2024 peak represents an increase of approximately 74%.
- Asset Base Evolution
- Net plant and equipment remained relatively stable between 2019 and 2022, fluctuating within a narrow range between 205 million USD and 223 million USD. However, a significant acceleration in capital investment occurred in the final two years of the period, with assets rising to 261 million USD in 2023 and further increasing to 291 million USD in 2024. This suggests a strategic expansion of infrastructure to support the increasing sales demand.
- Area Asset Turnover Efficiency
- The asset turnover ratio closely mirrors the volatility of sales. The ratio declined from 12.08 in 2019 to a low of 8.86 in 2021, indicating reduced efficiency and underutilization of fixed assets during the revenue slump. A sharp rebound occurred in 2022, with the ratio peaking at 12.56. Since 2022, the ratio has experienced a slight downward correction to 11.85 by 2024, reflecting the fact that the growth in the asset base has marginally outpaced the growth in sales during the most recent two-year window.
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Sales
Sysco Corp., sales by geographic area
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| United States | 63,931) | 62,404) | 56,511) | 42,610) | 42,804) | 48,257) |
| Canada | 5,993) | 5,828) | 5,094) | 3,907) | 4,105) | 4,660) |
| United Kingdom | 3,760) | 3,340) | 2,859) | 1,707) | 2,482) | 3,134) |
| France | 1,712) | 1,591) | 1,413) | 1,098) | 1,223) | 1,582) |
| Other | 3,448) | 3,162) | 2,759) | 1,976) | 2,280) | 2,481) |
| Total | 78,844) | 76,325) | 68,636) | 51,298) | 52,893) | 60,114) |
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).
Total revenue exhibited a V-shaped trajectory over the analyzed six-year period. A contraction occurred between June 2019 and July 2021, with total sales decreasing from 60.1 billion USD to a period low of 51.3 billion USD. This decline was followed by a sharp acceleration in growth, with revenue rising significantly to 68.6 billion USD in 2022 and continuing an upward trend to reach 78.8 billion USD by June 2024.
- United States Market Performance
- The United States remains the primary revenue driver, closely mirroring the overall corporate trend. Sales fell from 48.3 billion USD in 2019 to 42.6 billion USD in 2021. A substantial recovery began in 2022, with revenue climbing to 63.9 billion USD by 2024, representing a significant increase over pre-2020 levels.
- Canadian and European Market Dynamics
- International markets experienced similar volatility. Canada saw sales dip to 3.9 billion USD in 2021 before recovering to 6.0 billion USD by 2024. France experienced a decline to 1.1 billion USD in 2021 and returned to growth, ending at 1.7 billion USD. The United Kingdom showed the most acute contraction, with revenue falling from 3.1 billion USD in 2019 to 1.7 billion USD in 2021—a decrease of approximately 45%—before rebounding strongly to 3.8 billion USD by 2024.
- Other Geographic Regions
- Revenue from other areas followed the general pattern of a moderate decline through 2021, reaching 2.0 billion USD, followed by a steady expansion phase that resulted in 3.4 billion USD in sales by June 2024.
- Comparative Growth Analysis
- By the end of the period in 2024, every geographic segment reported sales figures exceeding their 2019 levels. The recovery phase from 2022 to 2024 was characterized by aggressive growth across all regions, suggesting a broad-based expansion of market share or pricing adjustments following the period of contraction.
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Plant and equipment at cost, less accumulated depreciation
Sysco Corp., plant and equipment at cost, less accumulated depreciation by geographic area
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| United States | 4,165) | 3,721) | 3,346) | 3,148) | 3,341) | 3,362) |
| Canada | 364) | 335) | 337) | 356) | 331) | 334) |
| United Kingdom | 369) | 298) | 249) | 275) | 255) | 271) |
| France | 308) | 300) | 304) | 323) | 309) | 330) |
| Other | 291) | 261) | 220) | 223) | 222) | 205) |
| Total | 5,497) | 4,915) | 4,456) | 4,326) | 4,459) | 4,502) |
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).
Net plant and equipment across all geographic segments exhibited an overall upward trajectory between June 2019 and June 2024, despite a period of contraction between 2019 and 2021. Total net assets rose from 4,502 million US dollars to 5,497 million US dollars, representing a total increase of approximately 22.1% over the period.
- United States Asset Base
- The United States represents the primary concentration of capital investment. After a decline from 3,362 million US dollars in 2019 to a low of 3,148 million US dollars in 2021, a period of aggressive expansion occurred. Assets increased consistently over the subsequent three years, reaching 4,165 million US dollars by June 2024, indicating a strategic ramp-up in domestic infrastructure.
- International Market Trends
- The United Kingdom demonstrated the most significant relative growth among international segments in the latter half of the period, increasing from 249 million US dollars in 2022 to 369 million US dollars in 2024. Canada remained relatively stable, fluctuating slightly to end the period at 364 million US dollars. France showed a general downward trend for much of the period, declining from 330 million US dollars in 2019 to 300 million US dollars in 2023, before a marginal recovery to 308 million US dollars in 2024.
- Other Geographic Areas
- Assets categorized under other regions showed a steady and consistent increase, growing from 205 million US dollars in 2019 to 291 million US dollars in 2024. This suggests a gradual expansion of the asset footprint in smaller or emerging markets.
The distribution of net plant and equipment indicates a heavy reliance on US-based infrastructure, which accounts for approximately 75.7% of total net assets as of June 2024. The acceleration of asset growth across the US and UK markets since 2022 suggests a synchronized investment cycle focused on these specific regions.
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