Analysis of Reportable Segments
Sysco Corp. operates in 3 segments: U.S. Foodservice Operations; International Foodservice Operations; and SYGMA.
Segment Profit Margin
Sysco Corp., profit margin by reportable segment
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 6.64% | 6.68% | 6.54% | 6.88% | 5.45% | 7.73% |
| International Foodservice Operations | 2.58% | 2.31% | 0.87% | -2.78% | -3.84% | 1.09% |
| SYGMA | 0.93% | 0.72% | -0.05% | 0.81% | 0.66% | 0.44% |
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).
- U.S. Foodservice Operations
- The profit margin for U.S. Foodservice Operations shows a notable decline from 7.73% in 2019 to 5.45% in 2020, indicating a challenging period. Subsequently, there is a recovery trend with the margin increasing to 6.88% in 2021. However, from 2021 onward, the margin stabilizes with slight fluctuations, recorded at 6.54% in 2022, 6.68% in 2023, and 6.64% in 2024. Overall, the segment maintains a margin close to 6.6% in the most recent years, reflecting a steady performance after the initial drop.
- International Foodservice Operations
- This segment exhibits significant volatility over the period. Beginning with a low profit margin of 1.09% in 2019, the margin sharply declines into negative territory in 2020 and 2021, reaching -3.84% and -2.78%, respectively. From 2022 onwards, the segment shows a positive turnaround, with margins improving to 0.87% in 2022, 2.31% in 2023, and 2.58% in 2024. The data suggests initial struggles followed by a progressive recovery, though the margins remain modest compared to U.S. operations.
- SYGMA
- The SYGMA segment demonstrates a generally positive and improving trend in profit margin. Starting from a low 0.44% in 2019, the margin rises to 0.66% in 2020 and continues to increase to 0.81% in 2021. There is a noticeable dip to -0.05% in 2022, indicating a brief loss situation. Nevertheless, the margin rebounds strongly afterwards, achieving 0.72% in 2023 and further improving to 0.93% in 2024. The pattern indicates resilience and a tendency toward gradual margin enhancement despite temporary setbacks.
Segment Profit Margin: U.S. Foodservice Operations
Sysco Corp.; U.S. Foodservice Operations; segment profit margin 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) | ||||||
| Operating income (loss) | 3,673) | 3,587) | 3,173) | 2,457) | 2,003) | 3,193) |
| Sales | 55,339) | 53,683) | 48,521) | 35,725) | 36,774) | 41,288) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 6.64% | 6.68% | 6.54% | 6.88% | 5.45% | 7.73% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Sales
= 100 × 3,673 ÷ 55,339 = 6.64%
- Operating Income (Loss)
- The operating income exhibited a decline from 3,193 million USD in 2019 to 2,003 million USD in 2020. This was followed by a recovery and increase over subsequent years, reaching 3,673 million USD in 2024. The initial decrease in 2020 may indicate challenges during that period, while the strong rebound suggests improved operational performance in later years.
- Sales
- Sales declined from 41,288 million USD in 2019 to 36,774 million USD in 2020, and further decreased to 35,725 million USD in 2021. However, a marked recovery began in 2022 with sales rising significantly to 48,521 million USD, continuing upward to 55,339 million USD by 2024. This trend indicates a swift recovery and expansion in revenue following the earlier downturn.
- Segment Profit Margin
- The segment profit margin decreased from 7.73% in 2019 to 5.45% in 2020, reflecting reduced profitability during that time. Thereafter, the margin improved to 6.88% in 2021 but slightly declined to 6.54% in 2022. From 2022 to 2024, the margin stabilized around 6.6%, showing modest fluctuations but maintaining a level below the 2019 peak.
- Summary
- The data exhibits a clear impact on financial performance beginning in 2020, with reductions in operating income, sales, and profit margin. Despite the initial downturn, there has been a consistent recovery in sales and operating income through 2024, reaching new highs beyond pre-2020 levels. Profit margins have partially recovered but remain somewhat below the peak seen in 2019. Overall, the segment shows resilience with strong growth trends following a period of adversity.
Segment Profit Margin: International Foodservice Operations
Sysco Corp.; International Foodservice Operations; segment profit margin 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) | ||||||
| Operating income (loss) | 375) | 313) | 102) | (232) | (371) | 125) |
| Sales | 14,561) | 13,560) | 11,787) | 8,351) | 9,672) | 11,493) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 2.58% | 2.31% | 0.87% | -2.78% | -3.84% | 1.09% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Sales
= 100 × 375 ÷ 14,561 = 2.58%
- Sales Trends
- Sales experienced a notable decline from 11,493 million USD in June 2019 to a low of 8,351 million USD in July 2021. This was followed by a substantial recovery, increasing to 11,787 million USD in July 2022, and continuing upward to reach 14,561 million USD by June 2024. The data indicates a strong rebound and growth phase after a period of contraction.
- Operating Income (Loss) Trends
- Operating income demonstrated significant volatility during the period. Initially, the segment posted a positive operating income of 125 million USD in June 2019. This shifted to operating losses of -371 million USD and -232 million USD in the subsequent two years (June 2020 and July 2021). From July 2022 onwards, there was a return to profitability with operating income rising to 102 million USD, then improving considerably to 375 million USD by June 2024. This pattern reflects a recovery from challenging conditions, culminating in strengthened profitability.
- Segment Profit Margin Trends
- The segment profit margin mirrored the fluctuations observed in operating income. Starting at 1.09% in June 2019, it declined sharply into negative territory, reaching -3.84% in June 2020 and -2.78% in July 2021. Subsequently, it returned to positive values, increasing to 0.87% in July 2022 and further improving to 2.58% by June 2024. This upward trend suggests an improvement in operational efficiency and cost management relative to sales over the latter years.
- Overall Observations
- The overall data reveal a period of difficulty for the segment between 2020 and 2021, characterized by reduced sales, operating losses, and negative profit margins. Following this, there has been a steady and significant recovery in sales volume and profitability through to mid-2024. This suggests effective measures were likely taken to reverse earlier declines, resulting in a stronger financial position and enhanced segment performance.
Segment Profit Margin: SYGMA
Sysco Corp.; SYGMA; segment profit margin 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) | ||||||
| Operating income (loss) | 72) | 57) | (4) | 53) | 37) | 28) |
| Sales | 7,768) | 7,843) | 7,246) | 6,499) | 5,556) | 6,244) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 0.93% | 0.72% | -0.05% | 0.81% | 0.66% | 0.44% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Sales
= 100 × 72 ÷ 7,768 = 0.93%
Over the analyzed periods, sales exhibited a generally increasing trend, starting at 6,244 million US dollars in mid-2019, then dipping to 5,556 million US dollars in mid-2020. From that point onward, sales recovered and grew steadily, reaching a peak of 7,843 million US dollars by mid-2023 before slightly declining to 7,768 million US dollars in mid-2024.
Operating income (loss) demonstrated greater volatility compared to sales. It began at 28 million US dollars in mid-2019, increased to 37 million in mid-2020, and further improved to 53 million by mid-2021. Notably, there was a sharp downturn in mid-2022, with operating income turning negative to a loss of 4 million US dollars. However, the segment rebounded strongly thereafter, achieving 57 million in mid-2023 and further increasing to 72 million US dollars in mid-2024, surpassing previous high points.
The segment profit margin percentage mirrored the patterns of operating income, with values starting low at 0.44% in mid-2019 and increasing to 0.66% in mid-2020 and 0.81% in mid-2021. The margin then contracted substantially into negative territory at -0.05% in mid-2022, indicating an unprofitable period. Subsequently, the margin recovered to 0.72% in mid-2023 and improved further to 0.93% in mid-2024, indicating improving profitability efficiency relative to sales.
- Sales
- Overall growth despite a temporary dip in mid-2020, peak reached in mid-2023, followed by a slight decrease in mid-2024.
- Operating Income
- Increasing trend with a notable loss in mid-2022; strong recovery and improvement through mid-2024 beyond earlier highs.
- Segment Profit Margin
- Fluctuated in line with operating income; dipped into negative in mid-2022 but showed marked improvement thereafter, indicating enhanced profitability.
In summary, the segment experienced a challenging period in mid-2022 marked by operating losses and negative profit margins despite rising sales. Post-2022, the segment demonstrated robust recovery in operational profitability and sustained revenue growth, resulting in improved profit margins and operating income in the most recent periods.
Segment Return on Assets (Segment ROA)
Sysco Corp., ROA by reportable segment
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 29.37% | 31.47% | 33.25% | 32.19% | 30.13% | 44.11% |
| International Foodservice Operations | 4.97% | 4.22% | 1.55% | -3.43% | -5.93% | 2.13% |
| SYGMA | 7.80% | 6.73% | -0.44% | 6.92% | 5.38% | 4.45% |
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).
- U.S. Foodservice Operations ROA
- The return on assets (ROA) for U.S. Foodservice Operations exhibits a generally downward trend over the six-year period. Starting at 44.11% in 2019, it decreased sharply to 30.13% in 2020. Although there was a slight recovery in 2021 and 2022, reaching 33.25%, the ROA diminished again to 31.47% in 2023 and further declined to 29.37% in 2024. This trend indicates consistent pressure on asset efficiency within this segment over the timeframe analyzed.
- International Foodservice Operations ROA
- The International Foodservice Operations segment shows significant volatility over the period. The ROA started at a modest 2.13% in 2019 but dropped to a negative figure of -5.93% in 2020, followed by a slight improvement to -3.43% in 2021. From 2022 onward, the segment demonstrated recovery, with ROA turning positive at 1.55%, rising to 4.22% in 2023 and further to 4.97% in 2024. This reflects an initial period of losses followed by a gradual improvement in asset returns in recent years.
- SYGMA ROA
- The SYGMA segment's ROA consistently improved over the period analyzed, starting at 4.45% in 2019 and increasing to 5.38% in 2020, then to 6.92% in 2021. There was a notable decline in 2022 when the ROA dropped to -0.44%. However, the segment quickly recovered in the subsequent years, with ROA rising to 6.73% in 2023 and reaching 7.8% in 2024. This pattern suggests a temporary setback in 2022 but an overall positive growth trajectory in asset returns for SYGMA.
- Overall Analysis
- Across the three segments, there is a clear divergence in performance dynamics. The U.S. Foodservice Operations segment experienced a steady decline in ROA, indicating challenges in maintaining asset profitability. The International Foodservice Operations segment faced significant initial difficulties but has shown steady improvement since 2022. Meanwhile, the SYGMA segment, despite a temporary downturn in 2022, demonstrated a strong recovery and consistent growth in ROA, suggesting improved operational efficiency or profitability in recent years.
Segment ROA: U.S. Foodservice Operations
Sysco Corp.; U.S. Foodservice Operations; segment ROA 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) | ||||||
| Operating income (loss) | 3,673) | 3,587) | 3,173) | 2,457) | 2,003) | 3,193) |
| Assets | 12,505) | 11,398) | 9,541) | 7,632) | 6,647) | 7,238) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 29.37% | 31.47% | 33.25% | 32.19% | 30.13% | 44.11% |
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
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 3,673 ÷ 12,505 = 29.37%
- Operating Income (Loss)
- The operating income for the segment shows a notable decline from 2019 to 2020, dropping from $3,193 million to $2,003 million. This was followed by a gradual recovery over the subsequent years, with operating income increasing to $2,457 million in 2021 and further to $3,173 million in 2022. The upward trend continued into 2023 and 2024, reaching $3,587 million and $3,673 million respectively, ultimately surpassing the pre-2020 level.
- Assets
- The segment's asset base demonstrated a steady increase throughout the period. Starting at $7,238 million in 2019, assets declined slightly in 2020 to $6,647 million, likely reflecting challenges during that year. From 2021 onward, assets expanded significantly each year, rising to $7,632 million in 2021, $9,541 million in 2022, $11,398 million in 2023, and peaking at $12,505 million in 2024, indicating continued investment or acquisition activities within the segment.
- Segment Return on Assets (ROA)
- The segment ROA decreased from 44.11% in 2019 to 30.13% in 2020, indicating a sharp decline in asset profitability, consistent with the drop in operating income and slight asset reduction. Although there was some recovery as ROA improved to 32.19% in 2021 and further to 33.25% in 2022, the ratio trended downward again in the last two periods, reaching 31.47% in 2023 and further declining to 29.37% in 2024. This downward trend suggests that despite growth in operating income and asset base, asset efficiency in generating income has diminished over recent years.
Segment ROA: International Foodservice Operations
Sysco Corp.; International Foodservice Operations; segment ROA calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 375) | 313) | 102) | (232) | (371) | 125) |
| Assets | 7,545) | 7,433) | 6,596) | 6,784) | 6,258) | 5,888) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 4.97% | 4.22% | 1.55% | -3.43% | -5.93% | 2.13% |
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
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 375 ÷ 7,545 = 4.97%
- Operating Income (Loss)
- The operating income exhibited significant volatility over the periods analyzed. Beginning with a positive figure of 125 million USD in mid-2019, there was a sharp decline to a loss of 371 million USD in mid-2020, followed by a reduced loss of 232 million USD in mid-2021. From mid-2022 onwards, the segment returned to profitability, recording positive operating incomes of 102 million, 313 million, and 375 million USD respectively. This indicates a recovery trend in operating income after the challenging period during 2020 and 2021.
- Assets
- Total assets in the segment show a generally increasing trend over the period. Assets grew steadily from 5,888 million USD in mid-2019 to 7,545 million USD by mid-2024. There was a slight decrease noted in mid-2022 compared to the previous year, but the overall trajectory remains upward, reflecting expansion or increased investment in the segment.
- Segment Return on Assets (ROA)
- The Segment ROA mirrored the fluctuations seen in operating income. It began at 2.13% in mid-2019 and dropped sharply into negative territory with -5.93% in mid-2020, improving somewhat to -3.43% in mid-2021. From mid-2022 forward, the ROA turned positive, improving progressively from 1.55% to 4.22% and then to 4.97% by mid-2024. This progression indicates an enhancement in the efficiency and profitability of the segment relative to its asset base following a period of negative returns.
- Overall Insights
- The data reflects a period of operational challenge in 2020 and 2021, likely connected to broader external factors impacting profitability. Despite these setbacks, the segment demonstrates a consistent recovery in profitability and asset utilization from 2022 to 2024. The growth in assets coupled with improved operating income and ROA suggests effective management responses and a strengthening business position in the latter years of the reporting period.
Segment ROA: SYGMA
Sysco Corp.; SYGMA; segment ROA 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) | ||||||
| Operating income (loss) | 72) | 57) | (4) | 53) | 37) | 28) |
| Assets | 923) | 840) | 835) | 760) | 685) | 625) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 7.80% | 6.73% | -0.44% | 6.92% | 5.38% | 4.45% |
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
Segment ROA = 100 × Operating income (loss) ÷ Assets
= 100 × 72 ÷ 923 = 7.80%
The data reflects the financial performance of the SYGMA reportable segment over a six-year period.
- Operating Income (Loss)
- The operating income displayed an overall upward trend from 2019 to 2024, starting at $28 million and increasing to $72 million by 2024. A notable decline occurred in 2022, with operating income turning negative at -$4 million, indicating a temporary loss. However, the segment recovered in subsequent years, achieving the highest values in 2023 and 2024 at $57 million and $72 million respectively.
- Assets
- Assets steadily increased year-over-year throughout the observed timeframe. Beginning at $625 million in 2019, assets grew consistently, reaching $923 million in 2024. This growth suggests ongoing investment or asset accumulation within the segment.
- Segment Return on Assets (ROA)
- ROA followed a pattern similar to operating income, with general improvement over the six years. It rose from 4.45% in 2019 to 7.80% in 2024, peaking in 2024. In 2022, ROA experienced a decline to -0.44%, corresponding to the period of operating loss, which indicates reduced efficiency or profitability of asset use during that year. After 2022, ROA rebounded strongly, nearing pre-decline levels and continuing to improve.
In summary, the segment exhibited resilience, recovering from a significant downturn in 2022 to demonstrate improved profitability and asset utilization by 2024. Both operating income and ROA indicate an overall positive growth trajectory, supported by steady asset expansion over the period.
Segment Asset Turnover
Sysco Corp., asset turnover by reportable segment
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 4.43 | 4.71 | 5.09 | 4.68 | 5.53 | 5.70 |
| International Foodservice Operations | 1.93 | 1.82 | 1.79 | 1.23 | 1.55 | 1.95 |
| SYGMA | 8.42 | 9.34 | 8.67 | 8.55 | 8.11 | 10.00 |
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).
- U.S. Foodservice Operations Asset Turnover
- The asset turnover ratio for U.S. Foodservice Operations has shown a general downward trend over the six-year period. Starting at 5.7 in 2019, the ratio slightly decreased to 5.53 in 2020, followed by a more pronounced drop to 4.68 in 2021. There was a modest recovery to 5.09 in 2022, but the ratio declined again to 4.71 in 2023, and further decreased to 4.43 in 2024. This indicates a gradual decline in asset efficiency within this segment, suggesting the company may be generating fewer sales per unit of asset over time in the U.S. Foodservice operations.
- International Foodservice Operations Asset Turnover
- The International Foodservice Operations segment experienced a dip from 1.95 in 2019 to a low of 1.23 in 2021, reflecting a significant decrease in asset turnover efficiency. However, there was a notable improvement thereafter, with the ratio increasing to 1.79 in 2022, slightly rising to 1.82 in 2023, and reaching 1.93 in 2024. This recovery trend suggests a strengthening in the segment’s ability to generate revenue from its assets, nearing the level seen at the beginning of the period.
- SYGMA Asset Turnover
- SYGMA displayed a fluctuating but generally high asset turnover relative to other segments. The ratio dropped from 10 in 2019 to 8.11 in 2020 but then showed a gradual improvement to 8.55 in 2021 and 8.67 in 2022. A peak was observed in 2023 at 9.34, followed by a decline to 8.42 in 2024. Despite the fluctuations, SYGMA maintains the highest asset turnover among the segments throughout the period, indicating superior efficiency in generating sales from assets compared to the other segments.
- Overall Observations
- The data reveal distinct patterns across the segments. The U.S. Foodservice Operations segment experiences a consistent decline in efficiency, whereas the International Foodservice Operations segment shows initial weakness but recovers toward previous levels. The SYGMA segment remains the most effective in asset utilization, despite some variability. The trends suggest that while some segments face challenges in maintaining asset productivity, others improve or sustain high efficiency, highlighting areas that may warrant strategic focus for optimization.
Segment Asset Turnover: U.S. Foodservice Operations
Sysco Corp.; U.S. Foodservice Operations; segment 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 | 55,339) | 53,683) | 48,521) | 35,725) | 36,774) | 41,288) |
| Assets | 12,505) | 11,398) | 9,541) | 7,632) | 6,647) | 7,238) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 4.43 | 4.71 | 5.09 | 4.68 | 5.53 | 5.70 |
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
Segment asset turnover = Sales ÷ Assets
= 55,339 ÷ 12,505 = 4.43
The sales figures in the U.S. Foodservice Operations segment exhibit notable fluctuations over the analyzed periods. Initially, there is a decline from $41,288 million in 2019 to $35,725 million in 2021, followed by a significant recovery and growth through to 2024, reaching $55,339 million. This pattern suggests an initial contraction possibly affected by external factors, succeeded by a robust expansion phase.
Regarding assets, the values demonstrate a consistent upward trajectory throughout the entire period. Starting from $7,238 million in 2019, assets increase steadily year-over-year, reaching $12,505 million by 2024. This continuous growth in assets reflects ongoing investments or acquisitions contributing to the segment's capacity and operational scale.
The segment asset turnover ratio indicates how effectively the assets are being utilized to generate sales. This ratio decreases from 5.7 in 2019 to 4.43 in 2024, evidencing a decline in efficiency. Despite the overall increase in sales and asset base, the diminished ratio suggests that sales growth has not kept pace proportionally with asset growth, resulting in reduced asset productivity over time.
- Sales Trend
- Declined from 2019 to 2021; strong recovery and growth from 2022 to 2024.
- Assets Trend
- Consistent growth with substantial increases each year from 2019 through 2024.
- Segment Asset Turnover Ratio
- Gradual decline, indicating reduced efficiency in generating sales from assets.
In summary, the segment shows a pattern of initial sales contraction followed by significant growth, supported by increasing asset investment. However, the declining asset turnover ratio points to a potential reduction in operational efficiency, warranting further analysis into the causes of diminished asset utilization relative to sales performance.
Segment Asset Turnover: International Foodservice Operations
Sysco Corp.; International Foodservice Operations; segment asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 14,561) | 13,560) | 11,787) | 8,351) | 9,672) | 11,493) |
| Assets | 7,545) | 7,433) | 6,596) | 6,784) | 6,258) | 5,888) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.93 | 1.82 | 1.79 | 1.23 | 1.55 | 1.95 |
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
Segment asset turnover = Sales ÷ Assets
= 14,561 ÷ 7,545 = 1.93
- Sales Trends
- Sales in the International Foodservice Operations segment demonstrated significant fluctuations over the observed periods. Initially, there was a decline from $11,493 million in mid-2019 to a low of $8,351 million by mid-2021. Following this trough, sales experienced a strong recovery, increasing to $11,787 million in 2022 and continuing upward to reach $14,561 million by mid-2024. This reflects a rebound exceeding the pre-decline levels and marks a positive growth trajectory in recent years.
- Assets Trends
- Segment assets showed a generally upward trend throughout the period. Starting at $5,888 million in mid-2019, assets rose steadily, with minor fluctuations, reaching $7,545 million by mid-2024. This growth suggests ongoing investments and asset accumulation supporting the segment's operations, though the increase was more gradual relative to the volatility observed in sales figures.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures sales generated per dollar of assets, declined sharply from 1.95 in 2019 to a low of 1.23 in 2021. This decrease coincides with the decline in sales and rise in assets, indicating lower efficiency in asset utilization during this period. Subsequently, asset turnover improved steadily, reaching 1.93 by mid-2024, nearly restoring the initial efficiency levels. This recovery aligns with the improvements seen in sales volumes.
- Overall Insights
- The segment experienced a significant downturn in sales and operational efficiency from 2019 through 2021, likely reflecting challenging market conditions or external disruptions. From 2022 onwards, there is clear evidence of recovery with both sales and asset turnover ratios trending upward, while assets continue to increase steadily. The improvement in asset turnover indicates enhanced effectiveness in using assets to generate revenue, suggesting management's successful response to prior challenges. The recent period's performance reveals robust growth and strengthening operational efficiency within the segment.
Segment Asset Turnover: SYGMA
Sysco Corp.; SYGMA; segment asset turnover calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | 7,768) | 7,843) | 7,246) | 6,499) | 5,556) | 6,244) |
| Assets | 923) | 840) | 835) | 760) | 685) | 625) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 8.42 | 9.34 | 8.67 | 8.55 | 8.11 | 10.00 |
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
Segment asset turnover = Sales ÷ Assets
= 7,768 ÷ 923 = 8.42
- Sales Trend
- Sales exhibited a decline from 6,244 million US dollars in June 2019 to 5,556 million in June 2020. Following this dip, sales demonstrated a steady upward trajectory, increasing to 6,499 million in July 2021 and further rising to a peak of 7,843 million in July 2023. However, the most recent period ending June 2024 showed a slight decrease to 7,768 million, indicating a minor downturn after several years of growth.
- Assets Trend
- Total assets showed consistent growth throughout the entire period. Starting at 625 million US dollars in June 2019, assets increased steadily each year, reaching 923 million by June 2024. This continuous asset growth reflects ongoing investment or accumulation of resources in the segment.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures efficiency in using assets to generate sales, declined from 10.00 in June 2019 to a low of 8.11 in June 2020. It then slightly recovered in subsequent years to 8.55 in 2021 and 8.67 in 2022, followed by a more significant increase to 9.34 in 2023. Despite this recovery, the ratio fell again to 8.42 in June 2024, suggesting some variability in asset utilization efficiency over time.
- Overall Insights
- The data indicates that despite a sales setback in 2020 likely influenced by external factors, there was a resilience and strong recovery in sales performance through 2023. Asset growth has been steady, supporting expanded operations or investments. However, the asset turnover ratio's fluctuations imply that the segment's efficiency in leveraging assets to generate sales has experienced challenges and has not consistently improved in line with asset growth. The minor sales decline in the latest year, combined with a decreased asset turnover, could signify emerging operational or market pressures requiring further analysis.
Segment Capital Expenditures to Depreciation
Sysco Corp., capital expenditures to depreciation by reportable segment
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 0.73 | 0.89 | 0.64 | 0.45 | 0.71 | 0.96 |
| International Foodservice Operations | 1.17 | 0.88 | 0.65 | 0.64 | 0.78 | 1.00 |
| SYGMA | 0.64 | 0.98 | 1.13 | 1.01 | 0.68 | 1.03 |
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 analysis of the annual reportable segment capital expenditures to depreciation ratios reveals varying trends across the three segments over the six-year period.
- U.S. Foodservice Operations
- This segment exhibits a fluctuating trend with a general decline in the ratio from 0.96 in 2019 to a low of 0.45 in 2021. Post-2021, there is a recovery to 0.89 in 2023, followed by a slight decrease to 0.73 in 2024. The pattern indicates periods of reduced capital expenditure relative to depreciation, particularly noticeable in 2020 and 2021, with efforts toward increased investment relative to depreciation in the subsequent years, though not consistently maintained.
- International Foodservice Operations
- The ratio started at 1.00 in 2019 and declined to 0.64 in 2021, suggesting a reduction in capital spending relative to depreciation during this period. From 2021 onwards, the segment shows a consistent upward trend, reaching a peak ratio of 1.17 in 2024. This upward movement implies renewed or increasing investment in capital assets relative to the depreciation expense, possibly reflecting growth initiatives or asset replacement strategies in international markets.
- SYGMA
- The SYGMA segment shows a more volatile pattern with the ratio decreasing from 1.03 in 2019 to 0.68 in 2020, rebounding sharply to 1.01 in 2021 and increasing further to 1.13 in 2022. However, there is a notable decline in the following years, with ratios dropping to 0.98 in 2023 and 0.64 in 2024. This trend suggests fluctuating investment activity relative to depreciation, with a period of heightened capital expenditure around 2021-2022 followed by a significant reduction in the latest years.
Overall, the data reflect segment-specific investment dynamics, with the International Foodservice Operations showcasing strong growth in capital investment relative to depreciation in recent years, while the U.S. Foodservice Operations and SYGMA segments display more variability and a tendency toward reduced ratios in the latest period. These trends could be indicative of strategic shifts, market conditions, or operational priorities affecting capital allocation decisions across the segments.
Segment Capital Expenditures to Depreciation: U.S. Foodservice Operations
Sysco Corp.; U.S. Foodservice Operations; segment capital expenditures to depreciation 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) | ||||||
| Capital expenditures | 366) | 389) | 262) | 163) | 264) | 327) |
| Depreciation and amortization | 499) | 437) | 407) | 367) | 374) | 342) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.73 | 0.89 | 0.64 | 0.45 | 0.71 | 0.96 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 366 ÷ 499 = 0.73
- Capital expenditures
- The capital expenditures displayed notable fluctuations across the reported periods. Initially, there was a decline from $327 million in June 2019 to a low of $163 million in July 2021. This was followed by a substantial increase to $389 million in July 2023. In the most recent period ending June 2024, capital expenditures slightly decreased to $366 million but remained significantly higher than the levels observed in the intervening years.
- Depreciation and amortization
- Depreciation and amortization expenses showed a consistent upward trend throughout the examined periods. Starting at $342 million in June 2019, the expense increased steadily, reaching $499 million by June 2024. This pattern suggests ongoing investments in assets and a growing base of depreciable asset values.
- Segment capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation exhibited variability in line with the fluctuations in capital spending. The ratio began at 0.96 in June 2019, indicating capital expenditures were almost equivalent to depreciation. It then decreased markedly to 0.45 in July 2021, reflecting reduced capital investments relative to asset depreciation. The ratio rebounded to 0.89 by July 2023 before declining again to 0.73 in June 2024, showing continued but less aggressive capital spending relative to depreciation levels.
- Overall analysis
- The data indicates a strategic period of reduced capital investments during 2020 and 2021, possibly reflecting caution or shifting priorities. This was followed by a significant ramp-up in capital expenditures in 2022 and 2023, correlating with the increasing depreciation expenses that suggest asset base growth. Despite the recent slight reduction in capital expenditures in 2024, the company maintained investments above the average levels observed in the middle years. The evolving ratio of capital expenditures to depreciation points to ongoing asset renewal and growth, though the pace of investment has moderated somewhat in the most recent period.
Segment Capital Expenditures to Depreciation: International Foodservice Operations
Sysco Corp.; International Foodservice Operations; segment capital expenditures to depreciation calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 289) | 193) | 155) | 152) | 218) | 250) |
| Depreciation and amortization | 247) | 218) | 240) | 238) | 279) | 249) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.17 | 0.88 | 0.65 | 0.64 | 0.78 | 1.00 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 289 ÷ 247 = 1.17
- Capital Expenditures
- Capital expenditures demonstrate a fluctuating pattern over the observed period. Starting at $250 million in June 2019, expenditures decreased consistently to a low of $152 million by July 2021. This decline was followed by a slight recovery in July 2022 to $155 million and then a further increase to $193 million in July 2023. The most recent data point in June 2024 shows a significant rise to $289 million, the highest value in the timeframe.
- Depreciation and Amortization
- The depreciation and amortization expense remained relatively stable with minor fluctuations. Beginning at $249 million in June 2019, the amount increased to $279 million in June 2020, followed by a decline to $238 million in July 2021. It maintained a stable level around $240 million in July 2022 and decreased to $218 million in July 2023. A moderate increase to $247 million is noted in June 2024, indicating some recovery in this measure.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation reveals consistent variation aligned with the underlying financial figures. Starting at a ratio of 1 in June 2019, it declined steadily over the next two years reaching a low of 0.64 in July 2021. This period corresponds with declining capital expenditures and relatively stable depreciation. The ratio then rose modestly to 0.65 in July 2022 and further increased to 0.88 in July 2023. The most notable change appears in June 2024 with a sharp rise to 1.17, reflecting a significant increase in capital expenditures compared to depreciation.
- Insights and Trends
- Overall, the capital expenditures show cyclical variations with a recent surge in 2024, suggesting increased investment or asset acquisition activity. Depreciation remains comparatively steady, implying consistent asset aging or amortization patterns. The capital expenditures to depreciation ratio highlights shifting investment intensity relative to asset depreciation, with a trend toward increased investment in the latest period. This dynamic could indicate strategic expansion or modernization efforts within this segment.
Segment Capital Expenditures to Depreciation: SYGMA
Sysco Corp.; SYGMA; segment capital expenditures to depreciation calculation
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 21) | 31) | 35) | 33) | 24) | 36) |
| Depreciation and amortization | 33) | 32) | 31) | 33) | 35) | 35) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.64 | 0.98 | 1.13 | 1.01 | 0.68 | 1.03 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 21 ÷ 33 = 0.64
The analysis of the capital expenditures and depreciation data for the SYGMA segment over the six-year period reveals notable trends in investment and asset utilization efficiency.
- Capital Expenditures
- Capital expenditures exhibited variability throughout the years, with a peak in 2019 at $36 million, followed by a decline in 2020 to $24 million. There was a partial recovery in 2021 and 2022, reaching $33 million and $35 million respectively, before trending downward again in 2023 and 2024 to $31 million and $21 million. This suggests a fluctuating investment pattern, with a notable reduction in the latest year under review.
- Depreciation and Amortization
- Depreciation and amortization expenses remained relatively stable, ranging narrowly between $31 million and $35 million throughout the period. A slight decrease is observed from 2019 to 2022, followed by a minor uptick in 2023 and 2024. This stability indicates consistent asset base aging and amortization scheduling without significant changes in asset composition or useful life estimations.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation mirrors the investment and expense trends. It started slightly above parity at 1.03 in 2019, dropped considerably to 0.68 in 2020, then improved to above 1.0 in 2021 and 2022, indicating capital expenditure levels comparable to or exceeding depreciation. However, in 2023 and 2024, this ratio again declined to below 1.0, reaching the lowest point at 0.64 in 2024. This suggests that recent capital investments are not keeping pace with asset depreciation, potentially indicating a reduction in asset renewal or growth investments.
In summary, the SYGMA segment shows a pattern of fluctuating capital investment, with a recent downward trend that may affect future asset capacity or modernization. Depreciation levels remain stable, reflecting a steady amortization of existing assets. The declining ratio between capital expenditures and depreciation in recent years signals a possible phase of reduced reinvestment, which could impact the segment's operational capabilities if the trend continues.
Sales
Sysco Corp., sales by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 55,339) | 53,683) | 48,521) | 35,725) | 36,774) | 41,288) |
| International Foodservice Operations | 14,561) | 13,560) | 11,787) | 8,351) | 9,672) | 11,493) |
| SYGMA | 7,768) | 7,843) | 7,246) | 6,499) | 5,556) | 6,244) |
| Other | 1,176) | 1,239) | 1,082) | 724) | 891) | 1,088) |
| 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).
The analysis of segment sales data over the six-year period reveals several notable trends and shifts in the performance of various business segments.
- U.S. Foodservice Operations
- This segment experienced a decline in sales from 2019 through 2021, decreasing from $41,288 million to $35,725 million. However, starting in 2022, there was a significant rebound, with sales rising sharply to $48,521 million, followed by continued growth through 2024, reaching $55,339 million. This pattern suggests a recovery period after initial challenges, possibly influenced by external economic conditions, followed by a robust expansion phase.
- International Foodservice Operations
- Sales in this segment show a downward trend from 2019 ($11,493 million) to 2021 ($8,351 million). From 2022 onward, there is a clear recovery and growth trend, with sales increasing to $11,787 million in 2022, $13,560 million in 2023, and further to $14,561 million in 2024. The restoration and escalation of sales indicate improved performance and possibly an expanding market presence internationally.
- SYGMA
- The SYGMA segment sales fluctuate moderately over the period. Starting at $6,244 million in 2019, sales decreased in 2020 to $5,556 million but then grew to $6,499 million in 2021. Continuous growth followed in 2022 and 2023, peaking at $7,843 million, before slightly declining to $7,768 million in 2024. The segment demonstrates relative stability with overall positive growth, although the minor drop in 2024 may require monitoring.
- Other
- Sales in the Other category exhibit a decline from 2019 ($1,088 million) to 2021 ($724 million). Recovery is evident from 2022 ($1,082 million), with increases through 2023 ($1,239 million). There is a slight decrease in 2024 ($1,176 million). This segment shows some volatility but generally mirrors the recovery pattern seen in other segments.
- Total Sales
- Total sales experienced a marked decline from 2019 ($60,114 million) to 2021 ($51,298 million), reflecting the downward trends in most segments during this period. A significant recovery occurred starting in 2022, with total sales surging to $68,636 million and continuing growth through 2023 ($76,325 million) and 2024 ($78,844 million). The overall trajectory highlights a strong rebound and growth phase following initial declines.
In summary, the data reflects an initial downturn in sales across all segments from 2019 to 2021, followed by a pronounced recovery and growth trend from 2022 to 2024. The U.S. Foodservice Operations and International Foodservice Operations segments show the most significant rebound, while SYGMA and Other categories demonstrate moderate recovery with some fluctuations. Total sales align with these segment trends, emphasizing a return to growth after a period of contraction.
Operating income (loss)
Sysco Corp., operating income (loss) by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 3,673) | 3,587) | 3,173) | 2,457) | 2,003) | 3,193) |
| International Foodservice Operations | 375) | 313) | 102) | (232) | (371) | 125) |
| SYGMA | 72) | 57) | (4) | 53) | 37) | 28) |
| Other | 40) | 57) | 17) | —) | (21) | 36) |
| Total | 4,160) | 4,013) | 3,289) | 2,276) | 1,647) | 3,382) |
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).
- U.S. Foodservice Operations
- The operating income in U.S. Foodservice Operations exhibits considerable fluctuation over the reported periods. It declined significantly from $3,193 million in mid-2019 to $2,003 million in mid-2020, likely reflecting challenging conditions during that period. Following this decline, there was a recovery and steady growth, with income rising to $2,457 million in 2021 and continuing upward to reach $3,173 million in 2022. The positive trend persisted with further increases to $3,587 million in 2023 and $3,673 million in 2024, surpassing the pre-2020 levels.
- International Foodservice Operations
- International Foodservice Operations showed a volatile pattern with a deficit occurring during 2020 and 2021. Operating income fell from $125 million in 2019 to negative $371 million in 2020 and negative $232 million in 2021, indicating significant operational challenges. However, after 2021 the segment experienced a strong turnaround, returning to profitability with $102 million in 2022, and then displaying substantial growth to $313 million in 2023 and further to $375 million in 2024.
- SYGMA
- The SYGMA segment generally shows a positive trend in operating income, increasing from $28 million in 2019 to $37 million in 2020 and further to $53 million in 2021. A notable exception occurred in 2022 when the segment recorded a small loss of $4 million. Subsequently, the segment bounced back strongly, with operating income rising to $57 million in 2023 and $72 million in 2024, reaching its highest reported value.
- Other
- The Other segment experienced variability with an operating income of $36 million in 2019 followed by a loss of $21 million in 2020. The segment nearly broke even in 2021 with a minor negative amount and improved to $17 million in 2022. Further gains were achieved in 2023 with $57 million; however, a slight decline to $40 million was noted in 2024.
- Total Operating Income
- Total operating income reflects the combined effects of the segments, showing an initial sharp decline from $3,382 million in 2019 to $1,647 million in 2020. This reduction aligns with the downturn seen across most segments during 2020. Afterward, total income steadily increased each year: $2,276 million in 2021, $3,289 million in 2022, $4,013 million in 2023, and peaking at $4,160 million in 2024. This consistent recovery and growth trend indicates overall improvement in operating performance across the company.
Depreciation and amortization
Sysco Corp., depreciation and amortization by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 499) | 437) | 407) | 367) | 374) | 342) |
| International Foodservice Operations | 247) | 218) | 240) | 238) | 279) | 249) |
| SYGMA | 33) | 32) | 31) | 33) | 35) | 35) |
| Other | 10) | 9) | 9) | 10) | 12) | 11) |
| Total | 789) | 695) | 687) | 648) | 700) | 638) |
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 depreciation and amortization expenses across the various reportable segments demonstrate distinct patterns over the analyzed periods.
- U.S. Foodservice Operations
- The expenses exhibit a consistent upward trend, increasing steadily from 342 million US$ in mid-2019 to 499 million US$ by mid-2024. This reflects an overall growth of approximately 46% over the six-year span, indicating increased asset base or accelerated depreciation and amortization in this segment.
- International Foodservice Operations
- The figures show more fluctuation with a peak of 279 million US$ in mid-2020, followed by a decline to 218 million US$ in mid-2023, before rising again to 247 million US$ in mid-2024. This pattern suggests some variability in asset utilization or changes in underlying operations within international markets.
- SYGMA
- Depreciation and amortization expenses are relatively stable, with minor decreases from 35 million US$ in earlier years to 31 million US$ in mid-2022, followed by a slight recovery to 33 million US$ by mid-2024. This stability might reflect a mature asset base with minimal significant investment fluctuations.
- Other
- Amounts in this category remain low and fairly constant, ranging between 9 and 12 million US$. No substantial trend or volatility is observed in this segment over the periods.
- Total
- The aggregate depreciation and amortization expenses generally mirror the growth seen in the U.S. Foodservice Operations segment, rising from 638 million US$ in mid-2019 to 789 million US$ in mid-2024. The total shows an overall upward trajectory with some moderate dips, particularly in mid-2021, corresponding to declines in the International Foodservice Operations and SYGMA segments during that period.
Capital expenditures
Sysco Corp., capital expenditures by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 366) | 389) | 262) | 163) | 264) | 327) |
| International Foodservice Operations | 289) | 193) | 155) | 152) | 218) | 250) |
| SYGMA | 21) | 31) | 35) | 33) | 24) | 36) |
| Other | 35) | 23) | 4) | 17) | 21) | 25) |
| Total | 711) | 636) | 457) | 365) | 526) | 638) |
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).
- U.S. Foodservice Operations
- Capital expenditures in this segment showed a decline from 327 million USD in 2019 to 163 million USD in 2021. A notable recovery occurred in 2022, reaching 262 million USD, followed by an increase to 389 million USD in 2023. In 2024, expenditures slightly decreased to 366 million USD, remaining elevated compared to the earlier years.
- International Foodservice Operations
- This segment experienced a downward trend from 250 million USD in 2019 to 152 million USD in 2021. Expenditures stabilized somewhat in 2022 at 155 million USD and began to increase thereafter, reaching 193 million USD in 2023 and rising sharply to 289 million USD in 2024, indicating renewed investment emphasis in international markets.
- SYGMA
- Capital expenditures fluctuated within a relatively narrow range. Starting at 36 million USD in 2019, the amount decreased to 24 million USD in 2020, then increased to 33 million USD in 2021 and 35 million USD in 2022. A decline followed in 2023 and 2024, dropping to 31 million USD and 21 million USD respectively, suggesting a reduction in investment focus on this segment in recent years.
- Other
- The “Other” category showed relatively low and inconsistent capital expenditures, starting at 25 million USD in 2019 and decreasing to 4 million USD in 2022. This was followed by a significant rise to 23 million USD in 2023, further increasing to 35 million USD in 2024, indicating an enhanced allocation of capital to miscellaneous or emerging areas.
- Total Capital Expenditures
- Total annual capital expenditures decreased from 638 million USD in 2019 to a low of 365 million USD in 2021. A steady recovery ensued, with totals climbing to 457 million USD in 2022, then sharply increasing to 636 million USD in 2023 and reaching the highest recorded level of 711 million USD in 2024. This pattern reflects an overall cautious approach during the earlier periods followed by aggressive capital investment in recent years.
Assets
Sysco Corp., assets by reportable segment
US$ in millions
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | |
|---|---|---|---|---|---|---|
| U.S. Foodservice Operations | 12,505) | 11,398) | 9,541) | 7,632) | 6,647) | 7,238) |
| International Foodservice Operations | 7,545) | 7,433) | 6,596) | 6,784) | 6,258) | 5,888) |
| SYGMA | 923) | 840) | 835) | 760) | 685) | 625) |
| Other | 616) | 644) | 555) | 455) | 458) | 477) |
| Total | 21,589) | 20,315) | 17,527) | 15,632) | 14,049) | 14,228) |
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 analysis of the annual reportable segment assets data reveals distinct trends over the six-year period from 2019 to 2024 across different segments.
- U.S. Foodservice Operations
-
This segment exhibits a steady growth trend overall. Starting at 7,238 million US dollars in 2019, there was a slight decrease in 2020 to 6,647 million, likely influenced by external factors during that period. However, from 2021 onward, a continuous and significant increase is observed, reaching 12,505 million by 2024, marking a substantial rise of approximately 73% from the 2019 base.
- International Foodservice Operations
-
International operations show a generally positive but more moderate growth pattern. Beginning at 5,888 million in 2019, assets increased steadily to 6,784 million in 2021 before experiencing a slight decline to 6,596 million in 2022. The segment then resumed growth, reaching 7,545 million in 2024. Overall, this segment grew by approximately 28% over the six years.
- SYGMA
-
The SYGMA segment demonstrates consistent growth throughout the analyzed period. From 625 million in 2019, the assets grew each year, reaching 923 million in 2024. This reflects roughly a 48% increase over the six years, indicating steady expansion and potentially effective asset management or increasing operational scale.
- Other
-
The Other segment presents a more fluctuating but generally upward trajectory. Starting with 477 million in 2019, it experienced a slight decrease in 2020 and 2021, followed by a notable surge in 2022 to 555 million, further climbing to 644 million in 2023 before slightly declining to 616 million in 2024. Despite minor volatility, the segment still shows net growth of nearly 29% across the period.
- Total Assets
-
Total assets across all segments increased substantially over the period. Beginning with 14,228 million in 2019, a slight decline was noted in 2020 to 14,049 million, after which assets rose steadily each year, achieving a significant level of 21,589 million by 2024. This overall gain of roughly 52% highlights an expansion in the company's asset base and possible scaling of operations or capital investment.
In summary, all segments except for minor downturns at specific points show growth in assets over the six-year range. The U.S. Foodservice Operations segment contributes most significantly to total asset growth in both absolute and relative terms. The International segment evidences more modest and somewhat variable growth, while SYGMA maintains consistent upward momentum. The Other segment, despite fluctuations, trends upward overall. The total reportable segment assets indicate a strong and sustained increase, reflecting expanded capacity and possibly improved business performance or strategic investments.