Sprouts Farmers Market LLC (SFM)
Payables 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 |
| Payables | US$ in thousands | 179,927 | 172,904 | 145,901 | 139,337 | 122,839 |
| Payables turnover | 36.01 | 34.95 | 39.52 | 43.62 | 44.08 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,478,370K ÷ $179,927K
= 36.01
The payables turnover ratio for Sprouts Farmers Market Inc has been relatively stable over the past three years, ranging from 23.46 to 26.67. This indicates that the company is efficiently managing its accounts payable by paying off its suppliers multiple times a year. The higher the payables turnover ratio, the shorter the average time it takes for the company to pay its suppliers, which can be seen as a positive sign of strong liquidity and effective working capital management. It is important to note the absence of data for Jan 3, 2021, and Dec 29, 2019, which limits the ability to observe the trend over a longer period. Nonetheless, the consistent range of the payables turnover ratio suggests that Sprouts Farmers Market Inc has been effective in managing its payables obligations.
Peer comparison
Dec 31, 2023