Sprouts Farmers Market LLC (SFM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,777,800 | 4,315,540 | 4,055,660 | 3,890,660 | 4,089,470 |
| Inventory | US$ in thousands | 343,329 | 323,198 | 310,545 | 265,387 | 254,224 |
| Inventory turnover | 13.92 | 13.35 | 13.06 | 14.66 | 16.09 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,777,800K ÷ $343,329K
= 13.92
Sprouts Farmers Market LLC's inventory turnover has been steadily decreasing over the past five years, from 16.09 in December 2020 to 13.92 in December 2024. This trend indicates that the company is taking longer to sell its inventory, which may lead to potential issues such as holding excess inventory or slow-moving products. A declining inventory turnover ratio can signify inefficiencies in managing inventory levels or challenges in accurately forecasting customer demand. It is essential for Sprouts Farmers Market LLC to closely monitor its inventory turnover and implement strategies to improve it, such as optimizing inventory levels, streamlining supply chain processes, and enhancing demand forecasting techniques to ensure effective inventory management and maximize profitability.
Peer comparison
Dec 31, 2024