Sprouts Farmers Market LLC (SFM)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,841,520 | 4,683,350 | 4,566,390 | 4,426,030 | 4,315,550 | 4,241,120 | 4,160,650 | 4,109,490 | 4,055,650 | 4,011,478 | 3,974,002 | 3,930,794 | 3,890,657 | 3,944,889 | 3,967,814 | 4,026,032 | 4,089,469 | 3,971,697 | 3,942,365 | 3,863,189 |
| Inventory | US$ in thousands | 343,329 | 329,472 | 325,578 | 316,202 | 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 |
| Inventory turnover | 14.10 | 14.21 | 14.03 | 14.00 | 13.35 | 13.10 | 13.00 | 13.39 | 13.06 | 13.30 | 13.57 | 14.44 | 14.66 | 14.55 | 14.48 | 14.86 | 16.09 | 15.44 | 15.44 | 15.26 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,841,520K ÷ $343,329K
= 14.10
Sprouts Farmers Market LLC's inventory turnover ratio over the past five years has shown a consistent trend, fluctuating within a narrow range. The ratio has ranged from a high of 16.09 on December 31, 2020, to a low of 13.00 on June 30, 2023. Overall, the inventory turnover ratio has been relatively stable, indicating that the company is efficiently managing its inventory levels and converting its inventory into sales effectively.
The average inventory turnover ratio for the period analyzed is approximately 14.19. This suggests that, on average, Sprouts Farmers Market LLC is able to sell and replace its inventory approximately 14.19 times a year. A higher inventory turnover ratio is generally seen as favorable, as it implies that the company is selling its goods quickly and efficiently, reducing the risk of obsolete inventory or carrying costs.
While the inventory turnover ratio has experienced some fluctuations, it is important to consider external factors such as seasonality and economic conditions that may impact sales and inventory turnover. Overall, Sprouts Farmers Market LLC's inventory turnover ratio provides insight into the company's operational efficiency and its ability to effectively manage its inventory levels to support its sales activities.
Peer comparison
Dec 31, 2024
Dec 31, 2024