Sprouts Farmers Market LLC (SFM)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 225.42 414.13 483.82 523.25 397.02 550.85 469.65 450.01 282.20 318.20 480.61 440.69 435.64 256.42 412.45 471.49 357.59 388.63 410.80 211.00
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 — —
Working capital turnover 120.08 84.93 69.26 46.09 42.23 42.67 48.18 52.59 112.24 77.71 92.35 73.43 — — 151.62 — — — — —

The activity ratios of Sprouts Farmers Market Inc provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory.
- Sprouts Farmers Market Inc has consistently maintained a high inventory turnover rate, indicating that the company is effectively managing its inventory levels and quickly converting inventory into sales.

2. Receivables Turnover:
- The receivables turnover ratio indicates how well the company is collecting on its credit sales.
- There is variation in the receivables turnover ratio across the quarters, with a significant increase in Q3 2023, suggesting that the company improved its efficiency in collecting receivables during that period.

3. Payables Turnover:
- The payables turnover ratio reflects how quickly the company is paying its suppliers for goods or services purchased on credit.
- Sprouts Farmers Market Inc has maintained relatively stable payables turnover ratios, indicating consistent payment practices with suppliers over the quarters.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales.
- The working capital turnover has shown variability across quarters, with a significant increase in Q4 2023, indicating improved efficiency in generating sales relative to working capital employed.

Overall, an analysis of Sprouts Farmers Market Inc's activity ratios suggests that the company is effectively managing its inventory, receivables, payables, and working capital to support its operations and drive sales growth.

Average number of days

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
Days of inventory on hand (DOH) days 19.89 20.30 20.51 19.99 18.76 18.44 18.13 17.05 16.80 16.97 16.94 16.44 15.27 15.95 16.11 16.50 18.71 11.96 13.35 12.95
Days of sales outstanding (DSO) days 1.62 0.88 0.75 0.70 0.92 0.66 0.78 0.81 1.29 1.15 0.76 0.83 0.84 1.42 0.88 0.77 1.02 0.94 0.89 1.73
Number of days of payables days 11.07 11.93 10.80 12.24 10.44 10.21 10.75 10.38 9.24 10.75 9.95 9.74 8.37 10.12 10.65 13.09 8.33 7.74 — —

Sprouts Farmers Market Inc experienced a slight increase in Days of Inventory on Hand (DOH) from Q1 2023 to Q4 2023, with the DOH ranging between 27.26 days to 28.07 days over the past year. This indicates that, on average, the company held inventory for around 27 to 28 days before selling it.

In terms of Days of Sales Outstanding (DSO), there was variability in the collection period for receivables, with DSO fluctuating between 0.70 days to 2.88 days. DSO was relatively low, reflecting efficient management of accounts receivable and quick collection of sales proceeds.

The Number of Days of Payables ranged from 14.79 days to 16.69 days over the past year, showing the average time it took for the company to pay its suppliers. The data suggests a consistent payment cycle, with minor fluctuations.

Overall, Sprouts Farmers Market Inc appears to have efficient inventory management and collection processes, coupled with a stable payment system to suppliers, reflecting good control over operating activities.

Long-term

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
Fixed asset turnover 8.56 8.68 8.92 9.07 8.85 9.09 9.02 8.78 8.50 8.74 8.90 9.03 8.88 8.46 8.22 7.97 7.58 7.44 7.43 7.66
Total asset turnover 2.05 2.04 2.05 2.05 2.08 2.09 2.08 2.05 2.08 2.12 2.18 2.20 2.30 2.24 2.05 2.05 2.06 2.00 2.01 2.03

The fixed asset turnover ratio for Sprouts Farmers Market Inc has been relatively stable, ranging from 8.56 to 9.11 over the past eight quarters. This indicates that the company is generating approximately $8.56 to $9.11 in sales for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has also shown consistency, fluctuating between 2.04 and 2.09 during the same period. This suggests that Sprouts Farmers Market Inc is efficiently using its total assets to generate sales, with each dollar of assets generating approximately $2.04 to $2.09 in revenue.

Overall, both ratios indicate that the company is effectively utilizing its assets to generate sales, with a higher fixed asset turnover reflecting the efficiency of its fixed asset utilization, while the total asset turnover ratio highlights the overall efficiency of asset management in driving revenue.