Sprouts Farmers Market LLC (SFM)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,930,310 | 5,818,690 | 5,694,760 | 5,605,040 | 6,042,930 | 5,971,440 | 5,896,620 | 5,826,900 | 5,765,920 | 5,831,550 | 5,906,800 | 6,017,600 | 6,077,470 | 5,886,000 | 5,785,600 | 5,599,680 | 5,384,720 | 8,720,090 | 7,369,303 | 7,265,633 |
| Inventory | US$ in thousands | 323,198 | 323,662 | 320,006 | 306,940 | 310,545 | 301,667 | 292,862 | 272,178 | 265,387 | 271,084 | 274,097 | 270,958 | 254,224 | 257,255 | 255,352 | 253,191 | 275,979 | 285,715 | 269,463 | 257,866 |
| Inventory turnover | 18.35 | 17.98 | 17.80 | 18.26 | 19.46 | 19.79 | 20.13 | 21.41 | 21.73 | 21.51 | 21.55 | 22.21 | 23.91 | 22.88 | 22.66 | 22.12 | 19.51 | 30.52 | 27.35 | 28.18 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,930,310K ÷ $323,198K
= 18.35
Sprouts Farmers Market Inc's inventory turnover ratio has been relatively stable over the past eight quarters, ranging from 13.00 to 14.44. This indicates that the company is efficiently managing its inventory levels and converting them into sales.
The highest inventory turnover ratio was seen in Q1 2022 at 14.44, suggesting that during this period, Sprouts Farmers Market Inc was selling through its inventory at a faster rate compared to other quarters. Conversely, the lowest ratio was observed in Q2 2023 at 13.00, indicating a slightly slower turnover of inventory during that period.
Overall, the consistency of inventory turnover ratios above 13 demonstrates that Sprouts Farmers Market Inc has a good balance between maintaining optimal inventory levels and swiftly selling its products. This efficiency indicates effective inventory management practices and contributes to the company's financial health and performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023