Sprouts Farmers Market LLC (SFM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,830,890 | 6,395,180 | 6,088,180 | 6,453,970 | 5,613,640 |
| Property, plant and equipment | US$ in thousands | 798,707 | 722,241 | 716,029 | 726,500 | 741,508 |
| Fixed asset turnover | 8.55 | 8.85 | 8.50 | 8.88 | 7.57 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,830,890K ÷ $798,707K
= 8.55
Sprouts Farmers Market Inc's fixed asset turnover ratio has exhibited a stable trend over the past five years, ranging between 7.60 and 8.90. The ratio indicates that for each dollar invested in fixed assets, the company generates between $7.60 and $8.90 in revenue.
The slight fluctuations in the ratio suggest that the company has been efficient in utilizing its fixed assets to generate sales. However, the decreasing trend from 8.90 in 2021 to 8.56 in 2023 may indicate a slight decrease in the company's ability to generate revenue from its fixed assets during this period.
Overall, the company has maintained a relatively high fixed asset turnover ratio, indicating efficiency in its asset utilization and revenue generation. Further analysis of the company's operational and strategic initiatives may provide insights into the fluctuations observed in the fixed asset turnover ratio over the years.
Peer comparison
Dec 31, 2023