Sprouts Farmers Market LLC (SFM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,478,370 | 6,042,940 | 5,765,920 | 6,077,460 | 5,414,320 |
| Inventory | US$ in thousands | 323,198 | 310,545 | 265,387 | 254,224 | 275,979 |
| Inventory turnover | 20.04 | 19.46 | 21.73 | 23.91 | 19.62 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,478,370K ÷ $323,198K
= 20.04
Sprouts Farmers Market Inc has demonstrated a consistent trend of inventory turnover ratios over the past five years. The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a certain period.
The trend shows a slight fluctuation in the inventory turnover ratio, ranging from 13.06 to 16.09. The highest turnover ratio was observed in Jan 3, 2021, indicating that Sprouts Farmers Market Inc managed its inventory efficiently and turned over its inventory 16.09 times during that year.
However, the ratio decreased slightly in the following years, reaching 13.35 on Dec 31, 2023, which may suggest a longer holding period for inventory or challenges in managing inventory levels effectively. Overall, the inventory turnover ratios for Sprouts Farmers Market Inc reflect a reasonably healthy turnover of inventory, although there may be opportunities for improvement in inventory management efficiency.
Peer comparison
Dec 31, 2023