Operating Profit Margin
since 2005
Calculation
Sysco Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Jun 29, 2024 | 4.06% | = | 100 | × | 3,202) | ÷ | 78,844) |
| Jul 1, 2023 | 3.98% | = | 100 | × | 3,039) | ÷ | 76,325) |
| Jul 2, 2022 | 3.41% | = | 100 | × | 2,339) | ÷ | 68,636) |
| Jul 3, 2021 | 2.80% | = | 100 | × | 1,437) | ÷ | 51,298) |
| Jun 27, 2020 | 1.42% | = | 100 | × | 750) | ÷ | 52,893) |
| Jun 29, 2019 | 3.88% | = | 100 | × | 2,330) | ÷ | 60,114) |
| Jun 30, 2018 | 3.97% | = | 100 | × | 2,329) | ÷ | 58,727) |
| Jul 1, 2017 | 3.71% | = | 100 | × | 2,053) | ÷ | 55,371) |
| Jul 2, 2016 | 3.67% | = | 100 | × | 1,851) | ÷ | 50,367) |
| Jun 27, 2015 | 2.53% | = | 100 | × | 1,229) | ÷ | 48,681) |
| Jun 28, 2014 | 3.41% | = | 100 | × | 1,587) | ÷ | 46,517) |
| Jun 29, 2013 | 3.73% | = | 100 | × | 1,658) | ÷ | 44,411) |
| Jun 30, 2012 | 4.46% | = | 100 | × | 1,891) | ÷ | 42,381) |
| Jul 2, 2011 | 4.91% | = | 100 | × | 1,932) | ÷ | 39,323) |
| Jul 3, 2010 | 5.31% | = | 100 | × | 1,976) | ÷ | 37,243) |
| Jun 27, 2009 | 5.08% | = | 100 | × | 1,872) | ÷ | 36,853) |
| Jun 28, 2008 | 5.01% | = | 100 | × | 1,880) | ÷ | 37,522) |
| Jun 30, 2007 | 4.88% | = | 100 | × | 1,708) | ÷ | 35,042) |
| Jul 1, 2006 | 4.58% | = | 100 | × | 1,495) | ÷ | 32,628) |
| Jul 2, 2005 | 0.00% | = | 100 | × | —) | ÷ | 30,282) |
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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27), 10-K (reporting date: 2014-06-28), 10-K (reporting date: 2013-06-29), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-07-02), 10-K (reporting date: 2010-07-03), 10-K (reporting date: 2009-06-27), 10-K (reporting date: 2008-06-28), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-07-01), 10-K (reporting date: 2005-07-02).
1 US$ in millions
Operating profit margins exhibit a cyclical trajectory characterized by an initial period of expansion, a prolonged phase of compression, a severe external shock, and a subsequent steady recovery. While total sales grew substantially from approximately 30.3 billion USD in 2005 to 78.8 billion USD by 2024, the efficiency of converting revenue into operating income has experienced significant volatility over the two-decade period.
- Initial Margin Expansion (2006–2009)
- A period of margin growth is observed from 2006 to 2009, with the operating profit margin increasing from 4.58% to a peak of 5.31%. During this timeframe, operating income grew from 1.49 billion USD to 1.87 billion USD, indicating a period of improved operational efficiency relative to sales growth.
- Prolonged Margin Compression (2010–2015)
- A sustained downward trend occurred between 2010 and 2015, during which margins declined from 4.91% to a low of 2.53%. This contraction happened despite a consistent increase in sales, which rose from 37.2 billion USD to 48.7 billion USD, suggesting that operating costs scaled more rapidly than revenue during this interval.
- Stability and Volatility (2016–2020)
- After a rebound to 3.67% in 2016, margins remained relatively stable between 3.7% and 4.0% through 2019. However, a sharp contraction is evident in 2020, where the operating profit margin fell to 1.42%. This decline coincided with a significant drop in both sales, which decreased to 52.9 billion USD, and operating income, which fell to 750 million USD.
- Recovery and Expansion Phase (2021–2024)
- A consistent recovery trend is observed from 2021 to 2024. The operating profit margin climbed steadily from 2.80% to 4.06%. This improvement was supported by aggressive sales growth, reaching 78.8 billion USD by June 2024, and a corresponding increase in operating income to a peak of 3.2 billion USD.
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Comparison to Competitors
Sysco Corp., operating profit margin, long-term trends, comparison to competitors
| Sysco Corp. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Jun 29, 2024 | 4.06% | 3.72% | 5.31% | 4.20% |
| Jul 1, 2023 | 3.98% | 3.41% | 3.53% | 3.37% |
| Jul 2, 2022 | 3.41% | 3.50% | 8.44% | 4.57% |
| Jul 3, 2021 | 2.80% | 3.49% | 6.99% | 4.06% |
| Jun 27, 2020 | 1.42% | 3.33% | 5.96% | 3.96% |
| Jun 29, 2019 | 3.88% | 3.17% | 5.45% | 4.30% |
| Jun 30, 2018 | 3.97% | 3.24% | 6.00% | 4.12% |
| Jul 1, 2017 | 3.71% | 3.26% | 7.15% | 4.73% |
| Jul 2, 2016 | 3.67% | 3.16% | 7.49% | 5.04% |
| Jun 27, 2015 | 2.53% | 3.19% | 6.25% | 5.63% |
| Jun 28, 2014 | 3.41% | 2.92% | 5.83% | 5.68% |
| Jun 29, 2013 | 3.73% | 2.97% | 7.33% | 5.96% |
| Jun 30, 2012 | 4.46% | 2.84% | 7.62% | 5.98% |
| Jul 2, 2011 | 4.91% | 2.80% | 7.79% | 6.10% |
| Jul 3, 2010 | 5.31% | 2.72% | 7.15% | 5.91% |
| Jun 27, 2009 | 5.08% | 2.54% | 6.78% | 5.68% |
| Jun 28, 2008 | 5.01% | 2.77% | 8.32% | 5.87% |
| Jun 30, 2007 | 4.88% | 2.55% | 8.52% | 5.94% |
| Jul 1, 2006 | 4.58% | 2.76% | 8.22% | 5.93% |
| Jul 2, 2005 | 0.00% | 2.84% | 7.69% | 5.99% |
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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27), 10-K (reporting date: 2014-06-28), 10-K (reporting date: 2013-06-29), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-07-02), 10-K (reporting date: 2010-07-03), 10-K (reporting date: 2009-06-27), 10-K (reporting date: 2008-06-28), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-07-01), 10-K (reporting date: 2005-07-02).