Sysco Corp. (NYSE:SYY)

Gross Profit Margin

The gross profit margin shows a gradual decline from 18.98% in 2019 to 17.95% in 2022, indicating a slight reduction in the company's efficiency in managing production or service costs relative to revenue over this period. However, there is a modest recovery in 2023 and 2024, reaching 18.53%, suggesting some improvement in cost control or pricing power.

Operating Profit Margin

The operating profit margin exhibits a significant decrease from 3.88% in 2019 to a low of 1.42% in 2020, which implies considerable pressure on operational profitability possibly due to increased expenses or reduced operating income. From 2020 onwards, there is a consistent increase, reaching 4.06% in 2024, surpassing the 2019 level and reflecting enhanced operational efficiency or better cost management during these years.

Net Profit Margin

The net profit margin drops sharply from 2.79% in 2019 to 0.41% in 2020, indicating a steep decrease in overall profitability after accounting for all expenses, taxes, and other costs. Thereafter, it gradually improves year over year, reaching 2.48% in 2024, approaching the margin observed in 2019. This trend points to a recovery in net profitability, likely driven by improved operations and possibly lower non-operating expenses.

Return on Equity (ROE)

The return on equity fluctuates markedly, with an initial decline from 66.9% in 2019 to 18.6% in 2020, showing a sharp reduction in shareholder returns. A rebound is visible in 2021 and surging increases in 2022 to 98.3%, continuing to rise to 105.11% in 2024. This volatility suggests significant changes in net income or equity levels, with a strong recovery and an exceptionally high level of efficiency in generating returns on equity in the latter years.

Return on Assets (ROA)

Return on assets declines steeply from 9.32% in 2019 to 0.95% in 2020, reflecting a considerable drop in the company’s ability to generate profit from its assets. A steady improvement follows, reaching 7.85% by 2024. This improvement highlights better utilization of assets to generate earnings, contributing to overall profitability recovery.

Gross Profit

The gross profit exhibited a declining trend from 2019 to 2021, decreasing from approximately $11.4 billion to $9.4 billion. However, a notable recovery occurred in 2022, followed by continued increases through 2023 and 2024, reaching about $14.6 billion. This rebound and growth phase suggests an improvement in cost management or pricing strategies after a period of contraction.

Sales

Sales revenue showed a consistent downward trend from 2019 to 2021, dropping from about $60.1 billion to $51.3 billion. Subsequently, there was a significant increase in 2022 and continued growth through 2023 and 2024, with sales reaching nearly $78.8 billion. The resurgence in sales aligns with the recovery seen in gross profit, indicating a return to growth in market demand or operational expansion.

Gross Profit Margin

The gross profit margin gradually declined from approximately 18.98% in 2019 to a low of 17.95% in 2022. Starting in 2023, the margin began to improve again, reaching 18.53% by 2024. Despite fluctuations, the margin remained relatively stable within a narrow range, indicating consistent profitability relative to sales with some pressure during the middle years likely due to increased costs or pricing pressures.

Operating Income

Operating income experienced a significant decline from 2,330 million USD in mid-2019 to 750 million USD in mid-2020, reflecting a challenging period. Subsequently, it showed a recovery trend, increasing to 1,437 million USD in mid-2021 and then rising more sharply to 2,339 million USD in mid-2022. This upward momentum continued with operating income reaching 3,039 million USD in mid-2023 and further increasing to 3,202 million USD in mid-2024, marking a strong recovery and growth over the most recent years.

Sales

Sales exhibited a declining pattern from 60,114 million USD in mid-2019 to 52,893 million USD in mid-2020, followed by a further decline to 51,298 million USD in mid-2021. After this period, sales demonstrated a notable rebound, rising substantially to 68,636 million USD in mid-2022. This positive trend persisted with sales increasing to 76,325 million USD in mid-2023 and reaching 78,844 million USD in mid-2024, indicating a strong recovery and progressive growth after the initial decrease.

Operating Profit Margin

The operating profit margin mirrored the trends observed in operating income, starting at 3.88% in mid-2019 and dropping sharply to 1.42% in mid-2020. It then improved to 2.8% in mid-2021 and continued to increase steadily to 3.41% in mid-2022. The margin further increased to 3.98% in mid-2023 and slightly rose to 4.06% in mid-2024. This progression indicates improving profitability efficiency relative to sales, especially after the challenging mid-2020 period.

Analysis of the annual financial data reveals notable fluctuations and overall growth across key performance indicators over the examined periods.

Net Earnings

Net earnings display a significant decline from 2019 to 2020, dropping steeply from 1,674 million US dollars to 215 million US dollars. This decrease is followed by a moderate recovery in 2021, with net earnings reaching 524 million US dollars. A pronounced upward trend then occurs in the subsequent years, with net earnings increasing to 1,359 million in 2022, 1,770 million in 2023, and peaking at 1,955 million in 2024. This pattern suggests a strong rebound and overall improvement in profitability after the initial downward shock.

Sales

Sales figures illustrate an initial decline from 60,114 million US dollars in 2019 to 52,893 million in 2020, followed by a further decrease to 51,298 million in 2021. However, from 2021 onwards, sales exhibit a robust growth trajectory, rising to 68,636 million in 2022, 76,325 million in 2023, and reaching 78,844 million in 2024. The upward resurgence in sales after 2021 indicates effective recovery strategies or favorable market conditions contributing to increased revenue.

Net Profit Margin

The net profit margin closely mirrors the trends seen in net earnings and sales. It declines sharply from 2.79% in 2019 to a low of 0.41% in 2020, reflecting reduced profitability possibly due to operational challenges. After this dip, the margin gradually recovers to 1.02% in 2021, then continues to improve to 1.98% in 2022, 2.32% in 2023, and 2.48% in 2024. The consistent rise in net profit margin over these years signals enhanced efficiency or cost management alongside revenue growth.

In summary, the data portrays a business experiencing a substantial downturn in 2020, followed by sustained recovery and growth in both earnings and sales. The improving net profit margin underscores increasing profitability and operational strength, especially evident in the last three years of the period analyzed.

Net earnings

Net earnings exhibit significant fluctuations over the analyzed periods. The value sharply declined from 1674 million USD in mid-2019 to 215 million USD in mid-2020, reflecting a substantial drop. Following this low point, there is a recovery trend with net earnings increasing to 524 million USD in 2021 and then rising further to 1359 million USD in 2022. This upward momentum continues with net earnings reaching 1770 million USD in 2023 and further increasing to 1955 million USD by 2024. Overall, the trend after 2020 is clearly positive, showing strong growth and recovery.

Shareholders’ equity

Shareholders’ equity shows considerable volatility across the periods. It declines notably from 2503 million USD in 2019 to 1159 million USD in 2020, indicating a significant contraction. The equity then increases to 1553 million USD in 2021 but falls again to 1382 million USD in 2022. In the subsequent periods, it grows to 2009 million USD in 2023 before dropping to 1860 million USD in 2024. This pattern suggests fluctuating capital base strength with some recovery phases and reductions, indicating potential challenges in maintaining consistent equity growth.

Return on Equity (ROE)

ROE percentage demonstrates noteworthy variability over time. Beginning at a high of 66.9% in 2019, it plummets to 18.6% in 2020. Thereafter, it increases steadily to 33.76% in 2021 and then surges dramatically to 98.3% in 2022. This strong performance is sustained with ROE at 88.13% in 2023 and further climbing to 105.11% in 2024. The elevated ROE values in the later years, especially exceeding 100% in 2024, suggest exceptional profitability relative to equity, possibly influenced by the fluctuations in shareholders' equity.

The financial data reveals several important trends and patterns over the analyzed periods. Net earnings experienced significant volatility, with a notable decline from 1,674 million US dollars in June 2019 to a low of 215 million in June 2020. This was followed by partial recovery in 2021 and continued improvement, reaching the highest value of 1,955 million US dollars by June 2024. This progression suggests a period of challenge around 2020, possibly linked to external factors, followed by strong recovery and growth.

Total assets showed an overall upward trajectory across the years. Starting at 17,967 million US dollars in June 2019, assets increased sharply in 2020 to 22,628 million, declined slightly in 2021, but resumed growth thereafter, reaching 24,917 million in June 2024. The increase in total assets over the horizon indicates expansion or acquisition activities and the accumulation of resources to support operations or growth initiatives.

Return on assets (ROA) mirrored the pattern observed in net earnings with a significant dip in 2020 to 0.95% from 9.32% in 2019. Thereafter, ROA steadily recovered, reaching 7.85% by June 2024. Although ROA did not return fully to the 2019 peak, the steady improvement over successive years reflects enhanced profitability relative to the asset base and improved operational efficiency.

Net Earnings

Fluctuated notably, with a major decline in 2020 followed by a strong upward trend, culminating in the highest reported value in 2024.

Total Assets

Consistently increased over the period, indicating asset growth despite a slight dip in 2021.

Return on Assets (ROA)

Declined sharply in 2020 but showed consistent recovery, indicating gradual improvement in asset profitability.