Sprouts Farmers Market LLC (SFM)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 14.10 | 14.21 | 14.03 | 14.00 | 13.35 | 13.10 | 13.00 | 13.39 | 13.06 | 13.30 | 13.57 | 14.44 | 14.66 | 14.55 | 14.48 | 14.86 | 16.09 | 15.44 | 15.44 | 15.26 | |
| DOH | days | 25.88 | 25.68 | 26.02 | 26.08 | 27.34 | 27.86 | 28.07 | 27.26 | 27.95 | 27.45 | 26.90 | 25.27 | 24.90 | 25.08 | 25.21 | 24.57 | 22.69 | 23.64 | 23.64 | 23.92 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.10
= 25.88
The Days of Inventory on Hand (DOH) is a financial ratio that measures how many days, on average, a company holds its inventory before selling it. For Sprouts Farmers Market LLC, the DOH has shown some fluctuations over the past few years.
From March 31, 2020, to December 31, 2020, the DOH decreased from 23.92 days to 22.69 days, indicating an improvement in inventory management efficiency. However, from March 31, 2021, to December 31, 2024, the DOH gradually increased from 24.57 days to 25.88 days, suggesting that the company might be taking longer to turn its inventory into sales.
The trend in the DOH for Sprouts Farmers Market LLC shows some volatility, with fluctuations observed across different quarters. It is essential for the company to closely monitor its inventory levels to optimize the balance between maintaining enough inventory to meet customer demand and avoiding excess holding costs.
Overall, the company should strive to strike a balance in inventory management to ensure efficient operations, maximize profitability, and enhance shareholder value.
Peer comparison
Dec 31, 2024