Return on Equity (ROE)
since 2005
Calculation
Sysco Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jun 29, 2024 | 105.11% | = | 100 | × | 1,955) | ÷ | 1,860) |
| Jul 1, 2023 | 88.13% | = | 100 | × | 1,770) | ÷ | 2,009) |
| Jul 2, 2022 | 98.30% | = | 100 | × | 1,359) | ÷ | 1,382) |
| Jul 3, 2021 | 33.76% | = | 100 | × | 524) | ÷ | 1,553) |
| Jun 27, 2020 | 18.60% | = | 100 | × | 215) | ÷ | 1,159) |
| Jun 29, 2019 | 66.90% | = | 100 | × | 1,674) | ÷ | 2,503) |
| Jun 30, 2018 | 57.07% | = | 100 | × | 1,431) | ÷ | 2,507) |
| Jul 1, 2017 | 47.97% | = | 100 | × | 1,143) | ÷ | 2,382) |
| Jul 2, 2016 | 27.29% | = | 100 | × | 950) | ÷ | 3,480) |
| Jun 27, 2015 | 13.06% | = | 100 | × | 687) | ÷ | 5,260) |
| Jun 28, 2014 | 17.69% | = | 100 | × | 932) | ÷ | 5,267) |
| Jun 29, 2013 | 19.12% | = | 100 | × | 992) | ÷ | 5,192) |
| Jun 30, 2012 | 23.94% | = | 100 | × | 1,122) | ÷ | 4,685) |
| Jul 2, 2011 | 24.48% | = | 100 | × | 1,152) | ÷ | 4,705) |
| Jul 3, 2010 | 30.83% | = | 100 | × | 1,180) | ÷ | 3,828) |
| Jun 27, 2009 | 30.61% | = | 100 | × | 1,056) | ÷ | 3,450) |
| Jun 28, 2008 | 32.45% | = | 100 | × | 1,106) | ÷ | 3,409) |
| Jun 30, 2007 | 30.54% | = | 100 | × | 1,001) | ÷ | 3,278) |
| Jul 1, 2006 | 28.02% | = | 100 | × | 855) | ÷ | 3,052) |
| Jul 2, 2005 | 34.85% | = | 100 | × | 961) | ÷ | 2,759) |
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
The financial trajectory from 2005 to 2024 is characterized by a significant transformation in the company's capital structure and profitability metrics. While net earnings remained relatively stable for the first decade, the subsequent period saw a dramatic divergence between earning capacity and the equity base, leading to an exponential increase in the return on equity.
- Net Earnings Trends
- Between 2005 and 2014, net earnings exhibited stability, generally fluctuating between 932 million and 1.18 billion USD. A period of growth followed from 2016 to 2019, with earnings peaking at 1.674 billion USD. A severe contraction occurred in 2020, where earnings plummeted to 215 million USD, representing the lowest point in the analyzed period. However, a robust recovery ensued, with earnings climbing steadily to reach a historical peak of 1.955 billion USD by June 2024.
- Shareholders' Equity Dynamics
- The equity base experienced a steady expansion from 2005 through 2014, growing from 2.759 billion USD to a peak of 5.267 billion USD. Starting in 2015, a sharp and consistent reduction in shareholders' equity is observed, falling to 1.159 billion USD by 2020. This suggests a strategic shift toward capital redistribution or aggressive share buybacks. From 2021 to 2024, equity stabilized and recovered slightly, ending the period at 1.860 billion USD, which remains significantly lower than the 2014 levels.
- Return on Equity (ROE) Interpretation
- ROE remained consistent between 24% and 35% from 2005 to 2011, followed by a decline to a low of 13.06% in 2015. From 2016 onward, ROE shifted aggressively upward, reaching 66.90% in 2019. This surge was driven by the simultaneous increase in net earnings and the substantial reduction in shareholders' equity. Despite a temporary drop to 18.60% in 2020 due to the collapse in net earnings, ROE accelerated rapidly in the final years, culminating in 105.11% in 2024. This indicates a highly leveraged capital structure where the company generates earnings exceeding its total book value of equity.
The overall analysis indicates a transition from a conservative equity-funded model to a highly efficient, low-equity model. The extreme elevation of ROE in the latter part of the period is a direct result of maintaining high earnings while keeping the equity base lean, thereby magnifying the return for shareholders.
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Comparison to Competitors
Sysco Corp., ROE, long-term trends, comparison to competitors
| Sysco Corp. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Jun 29, 2024 | 105.11% | 31.19% | 30.81% | 18.50% |
| Jul 1, 2023 | 88.13% | 25.11% | 24.75% | 15.23% |
| Jul 2, 2022 | 98.30% | 28.31% | 54.15% | 16.42% |
| Jul 3, 2021 | 33.76% | 28.51% | 30.25% | 16.69% |
| Jun 27, 2020 | 18.60% | 21.89% | 27.73% | 19.93% |
| Jun 29, 2019 | 66.90% | 24.00% | 26.00% | 9.20% |
| Jun 30, 2018 | 57.07% | 24.49% | 25.06% | 12.66% |
| Jul 1, 2017 | 47.97% | 24.86% | 24.99% | 17.54% |
| Jul 2, 2016 | 27.29% | 19.46% | 25.96% | 18.24% |
| Jun 27, 2015 | 13.06% | 22.39% | -11.69% | 20.10% |
| Jun 28, 2014 | 17.69% | 16.73% | 12.14% | 21.01% |
| Jun 29, 2013 | 19.12% | 18.82% | 18.11% | 22.27% |
| Jun 30, 2012 | 23.94% | 13.83% | 18.51% | 22.01% |
| Jul 2, 2011 | 24.48% | 12.18% | 18.85% | 23.91% |
| Jul 3, 2010 | 30.83% | 12.03% | 16.21% | 20.26% |
| Jun 27, 2009 | 30.61% | 10.83% | 16.15% | 20.53% |
| Jun 28, 2008 | 32.45% | 13.95% | 18.61% | 19.70% |
| Jun 30, 2007 | 30.54% | 12.56% | 17.83% | 18.33% |
| Jul 1, 2006 | 28.02% | 12.07% | 16.95% | 21.12% |
| Jul 2, 2005 | 34.85% | 11.97% | 24.55% | 20.79% |
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), 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).
Comparison to Sector (Consumer Staples Distribution & Retail)
Sysco Corp., ROE, long-term trends, comparison to sector (consumer staples distribution & retail)
| Sysco Corp. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Jun 29, 2024 | 105.11% | 22.34% |
| Jul 1, 2023 | 88.13% | 18.37% |
| Jul 2, 2022 | 98.30% | 22.67% |
| Jul 3, 2021 | 33.76% | 20.26% |
| Jun 27, 2020 | 18.60% | 21.15% |
| Jun 29, 2019 | 66.90% | 13.40% |
| Jun 30, 2018 | 57.07% | 15.56% |
| Jul 1, 2017 | 47.97% | 19.15% |
| Jul 2, 2016 | 27.29% | 19.33% |
| Jun 27, 2015 | 13.06% | 16.13% |
| Jun 28, 2014 | 17.69% | 19.13% |
| Jun 29, 2013 | 19.12% | 21.24% |
| Jun 30, 2012 | 23.94% | 20.44% |
| Jul 2, 2011 | 24.48% | 21.63% |
| Jul 3, 2010 | 30.83% | 18.70% |
| Jun 27, 2009 | 30.61% | 18.76% |
| Jun 28, 2008 | 32.45% | 18.92% |
| Jun 30, 2007 | 30.54% | 17.66% |
| Jul 1, 2006 | 28.02% | 19.27% |
| Jul 2, 2005 | 34.85% | 20.37% |
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).
Comparison to Industry (Consumer Staples)
Sysco Corp., ROE, long-term trends, comparison to industry (consumer staples)
| Sysco Corp. | Consumer Staples | |
|---|---|---|
| Jun 29, 2024 | 105.11% | 32.18% |
| Jul 1, 2023 | 88.13% | 30.71% |
| Jul 2, 2022 | 98.30% | 32.10% |
| Jul 3, 2021 | 33.76% | 31.40% |
| Jun 27, 2020 | 18.60% | 30.98% |
| Jun 29, 2019 | 66.90% | 22.71% |
| Jun 30, 2018 | 57.07% | 28.05% |
| Jul 1, 2017 | 47.97% | 25.14% |
| Jul 2, 2016 | 27.29% | 25.00% |
| Jun 27, 2015 | 13.06% | 23.15% |
| Jun 28, 2014 | 17.69% | 23.21% |
| Jun 29, 2013 | 19.12% | 24.09% |
| Jun 30, 2012 | 23.94% | 23.55% |
| Jul 2, 2011 | 24.48% | 23.75% |
| Jul 3, 2010 | 30.83% | 24.19% |
| Jun 27, 2009 | 30.61% | 23.20% |
| Jun 28, 2008 | 32.45% | 22.49% |
| Jun 30, 2007 | 30.54% | 18.15% |
| Jul 1, 2006 | 28.02% | 18.58% |
| Jul 2, 2005 | 34.85% | 22.40% |
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).