Finance essay for Final

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Need some assistance with a essay for a Final. The work is a combination of past assignments put together but directions are needed to be followed. No Plagiarism. & Must be in APA Format. Video layout creation needed.

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Running head: CORPORATE PERFORMANCE REPORT

Corporate Performance Report

Student’s name:
Course name and number:
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CORPORATE PERFORMANCE REPORT

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Corporate Performance Report
Executive Summary
Sysco Corporation is one of the reputable companies in the groceries stores industry. It
has witnessed rapid and consistent growth over the past four years and has a bright future for
greater market possession. The company has a positive trend in sales revenues, an indicator that
it has a good grasp of the market. The current ratio, which is increasing and stable over the past
three years also indicates that the company is stable and a viable company for investment. The
company also has a high profit margin of 2%, which indicates that the company is profitable. A
comparison of the company with the industry average indicates that the company has high
dividend yields, low P/E, competitive inventory turnover, and competitive profit margin in
comparison with the industry, an indication that the company is doing favorably in the industry.
The high rate of Return on Equity (ROE) – 57.16% is also on indicator that the company is
stable and able to deliver high profits for every invested coin. The company is highly valued and
recommended for stock investment.

CORPORATE PERFORMANCE REPORT

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1. Introduction to and Background on the Company
❖ Background information
Sysco Corporation is a multinational food service company dedicated in the sourcing,
marketing and distribution of food related products. The main targeted customers include hotels,
inns, healthcare sector, restaurants, governments, industrial caterers, hospitality businesses,
motels, nursing homes, and educational facilities (Sysco, 2017). It is currently the largest food
service corporation in the US and is headquartered in Houston, Texas. Their vision is to become
their customers’ most valued and trusted business partner. Sysco’s mission statement is to market
and deliver great products to their customers with exceptional levels of service.
The name Sysco is an acronym and spans from the larger name Systems and Services
Corporation. John F. Baugh, Herbert Irving, and Harry Rosenthal are the founders of the
company and they formed it in 1969 (Sysco, 2017). The company operates in more than 90
countries worldwide including U.S., Canada, Venezuela, Luxembourg, United Kingdom, Costa
Rica, Mexico, Panama, Belgium, France, Bahamas, Spain, Ireland, Sweden, and many other
countries worldwide (Sysco, 2017). The company operates under three major segments including
the SYGMA, International Foodservice operations, and U.S. Foodservice Operations. According
to the 2017 financial reports, the company had 66,500 employees throughout their distribution
points.
The company mainly specializes in fresh foods and vegetables. It also sells fruits, canned
and dry foods, fresh seafood and meats, frozen foods, meats and seafood, dairy products,
imported specialties, fresh produce and beverage products (Sysco, 2017). Apart from these
products, the company also specializes in other non-food products including pans, pots, utensils,
cups, plates, cookware, kitchen equipment, cleaning supplies, silverware, napkins, paper

CORPORATE PERFORMANCE REPORT

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products, and many other products. The company has many assets including 13,400 delivery
vehicles, where it owns about 87% of the vehicles. These vehicles help in the timely delivery of
products to the various customers (Sysco, 2017).
The company is particularly interesting because it has shown positive improvement and
development in their operations, growth, and finances (Sysco, 2017). The company is on an
upward trend, mainly growing and expanding through acquisitions and mergers. The latest
attempt of acquisition was to acquire U.S. Foods Company. A federal judge, who cited that it
would turn Sysco Corporation into a monopoly, dominating about 75% of the US foods sector,
stopped the quest (Sysco, 2017). In the past, it has acquired SERCA Foodservices a Canadian
owned company, Asian Foods, which was based in North America, Pallas foods in Ireland,
Crossgar Foods and many other corporations. As such, Sysco Corporation is a large corporation
that is growing at an alarming rate (Sysco, 2017).
The company is also appealing because it is a potential partner for investors. The
financial records of the company indicate that an investment of $100 in 2012 would grow to
$119 in 2013, $150 in 2014, $164 in 2015, $168 in 2016, and $198 in 2017 (Sysco, 2017). As
such, the corporation is on an upward trend in terms of profitability and is a potential profitable
partner for investors.
❖ Financial information
Their financial statements and information indicates that Sysco is on an upward trend in
their finances including revenues, income, profits, and all financial elements (Sysco, 2017). A
snapshot of the trend of the company financially is shown below.

CORPORATE PERFORMANCE REPORT

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Table 1: Showing financial trend of Sysco Corporation
2013

2014

2015

2016

2017

Sales in $ (USD)

44,411,233 46,516,712 48,680,752

50,366,919

55,371,139

Net earnings $ (USD)

992,427

931,533

686,773

949,622

1,142,503

Operating income $ (USD)

1,658,474

1,587,122

1,229,362

1,850,500

2,053,171

In the latest financial statement for 2017, Sysco increased their sales revenues by 9.9%....


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