Sprouts Farmers Market LLC (SFM)
Payables 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 |
| Payables | US$ in thousands | 179,927 | 190,133 | 168,541 | 187,948 | 172,904 | 166,968 | 173,687 | 165,703 | 145,901 | 171,766 | 161,100 | 160,596 | 139,337 | 163,259 | 168,833 | 200,762 | 122,839 | 184,893 | — | — |
| Payables turnover | 32.96 | 30.60 | 33.79 | 29.82 | 34.95 | 35.76 | 33.95 | 35.16 | 39.52 | 33.95 | 36.67 | 37.47 | 43.62 | 36.05 | 34.27 | 27.89 | 43.84 | 47.16 | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,930,310K ÷ $179,927K
= 32.96
Based on the given data, Sprouts Farmers Market Inc's payables turnover ratio has shown fluctuations over the past eight quarters. The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times during a period the company pays off its average accounts payable balance.
In Q4 2023, the payables turnover ratio was 23.98, indicating that Sprouts Farmers Market Inc paid off its accounts payable nearly 24 times during that quarter. The Q4 2023 ratio was higher than the previous quarter, Q3 2023 (22.31), suggesting the company improved its efficiency in managing its payables.
Looking back further, we see that the payables turnover ratio has been fluctuating between 21.87 and 24.69 over the past eight quarters. Despite these fluctuations, the ratios generally remain within a relatively close range, indicating consistent management of accounts payable.
Overall, the trend in Sprouts Farmers Market Inc's payables turnover ratio suggests that the company has been effectively managing its accounts payable, with occasional variations quarter to quarter. It is important to continue monitoring this ratio to ensure the company's financial health and efficient use of working capital.
Peer comparison
Dec 31, 2023