Name: Return on Capital Employed (ROCE)

Definition: ROCE looks at how effectively the company uses all long-term capital — both debt and equity — to generate profits. It’s a good way to compare companies with different financing structures. Higher ROCE means the company makes good returns on every dollar invested in its business operations.

Interpretation:
• In '2021', SYY's return on capital employed was 10.4%, indicating returns achieved on invested capital. Industry average for Food Distributors in '2021' stood at 14.2%.
• In '2022', SYY's return on capital employed was 17.8%, indicating returns achieved on invested capital. The increase since '2021' reflects strengthening financial performance. Industry average for Food Distributors in '2022' stood at 14.2%. Industry average declined by 0.0% from previous year.
• In '2023', SYY's return on capital employed was 19.7%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Food Distributors in '2023' stood at 18.4%. Industry average increased by 4.1% compared to previous year.
• In '2024', SYY's return on capital employed was 20.2%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Food Distributors in '2024' stood at 69.7%. Industry average increased by 51.3% compared to previous year.
Overall, SYY's return on capital employed has been volatile but showed an upward trend over the past 4 years.

Formula: ROCE = EBIT / (Total Assets - Current Liabilities)

Good Range: Often 8%-20%.