The chart above reveals that UNIF’s return on investment has been consistent over the last years but UNFI’s has fallen by half and we can see that the stock responded accordingly. Thus even though SYSCO is a larger company by revenue, assets and net income, it has not been able to deliver the return shareholders expected.
Now we will do the ratio analysis between the two firms. Our results show that UNFI has a much higher profit margin and return on invested capital than SYSCO. UNFI’s profit margin is 1% higher than SYSCO’s. Sysco’s gross profit to sales is actually higher than UNFI’s. This is evidence that UNFI better manages its operations and has kept operating expenses low. UNFI has a higher equity to assets ratio, which is another positive,
Now we will do the ratio analysis between the two firms. Our results show that UNFI has a much higher profit margin and return on invested capital than SYSCO. UNFI’s profit margin is 1% higher than SYSCO’s. Sysco’s gross profit to sales is actually higher than UNFI’s. This is evidence that UNFI better manages its operations and has kept operating expenses low. UNFI has a higher equity to assets ratio, which is another positive,