Sprouts Farmers Market LLC (SFM)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 225.42 | 414.13 | 483.82 | 523.25 | 397.02 | 550.85 | 469.65 | 450.01 | 282.20 | 318.20 | 480.61 | 440.69 | 435.64 | 256.42 | 412.45 | 471.49 | 357.59 | 388.63 | 410.80 | 211.00 | |
| DSO | days | 1.62 | 0.88 | 0.75 | 0.70 | 0.92 | 0.66 | 0.78 | 0.81 | 1.29 | 1.15 | 0.76 | 0.83 | 0.84 | 1.42 | 0.88 | 0.77 | 1.02 | 0.94 | 0.89 | 1.73 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 225.42
= 1.62
Sprouts Farmers Market Inc's Days of Sales Outstanding (DSO) has shown a decreasing trend over the past eight quarters, indicating an improvement in the company's ability to collect revenue from sales. The DSO decreased from 1.95 days in Q4 2022 to 0.70 days in Q1 2023, reaching the lowest point of 0.75 days in Q2 2023. This suggests that the company has become more efficient in converting its accounts receivable into cash.
The significant decrease in DSO indicates that Sprouts Farmers Market Inc has been successful in managing its credit and collection policies effectively. A lower DSO implies that the company is collecting payments from customers more quickly, which can improve cash flow and liquidity. The consistent decline in DSO over the quarters reflects positively on the company's financial management and operational efficiency.
Overall, the decreasing trend in Days of Sales Outstanding for Sprouts Farmers Market Inc is a positive indicator of the company's ability to efficiently manage its accounts receivable and convert sales into cash promptly. This trend suggests improved liquidity and financial health for the company.
Peer comparison
Dec 31, 2023