Sprouts Farmers Market LLC (SFM)

Short-term

Turnover ratios

The activity ratios of Sprouts Farmers Market LLC provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times during a period the company sold and replaced its inventory. Sprouts Farmers Market LLC's inventory turnover ranged from 13.00 to 16.09 over the observed periods. The decreasing trend indicates a slower turnover of inventory in recent quarters, which could imply potential issues with inventory management or slowing sales.

2. Receivables Turnover: The receivables turnover ratio, which was not available for Sprouts Farmers Market LLC, indicates how efficiently the company collects payments from its customers. The absence of data suggests that the company may not have significant accounts receivable balances or operates on a cash basis.

3. Payables Turnover: The payables turnover ratio, not provided for Sprouts Farmers Market LLC, measures how quickly the company pays its suppliers. Lack of information on this ratio limits the ability to assess the company's payment practices and relationships with suppliers.

4. Working Capital Turnover: The working capital turnover ratio reflects how efficiently a company utilizes its working capital to generate sales revenue. Sprouts Farmers Market LLC's working capital turnover varied widely, from 42.29 to 392.98, indicating fluctuations in the utilization of working capital. The significant changes in this ratio suggest varying levels of operational efficiency and capital management by the company.

Overall, by analyzing these activity ratios, it appears that Sprouts Farmers Market LLC may need to focus on improving inventory turnover and working capital utilization to enhance operational efficiency and profitability.

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Average number of days

The data provided for Sprouts Farmers Market LLC includes information on the Activity Ratios such as Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables over various periods from March 31, 2020, to December 31, 2024.

The Days of Inventory on Hand (DOH) ratio indicates the average number of days the company holds inventory before selling it. The trend for Sprouts Farmers Market shows a slight increase in DOH from 23.92 days on March 31, 2020, to 25.88 days on December 31, 2024. This suggests that the company took slightly longer to sell its inventory over the period.

The Days of Sales Outstanding (DSO) ratio, which measures how long it takes the company to collect revenue after a sale is made, was not provided in the data. Without this information, it's difficult to assess the efficiency of Sprouts Farmers Market in collecting its accounts receivable.

The Number of Days of Payables ratio was not provided in the data as well, making it challenging to analyze how long the company takes to pay its obligations to suppliers and creditors.

In conclusion, based on the available information, it appears that Sprouts Farmers Market's inventory turnover has slowed down slightly over the period, but further analysis of the Days of Sales Outstanding and Number of Days of Payables ratios would provide a more comprehensive view of the company's overall activity and efficiency in managing working capital.

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Long-term

The long-term activity ratios of Sprouts Farmers Market LLC provide insights into how efficiently the company is utilizing its assets to generate sales.

1. Fixed Asset Turnover: This ratio measures the efficiency of the company in generating sales from its fixed assets. The trend for Sprouts Farmers Market shows a consistent increase in fixed asset turnover from March 31, 2020, to December 31, 2022, indicating an improvement in utilizing fixed assets to generate revenue. However, there was a slight decrease in the ratio in the following quarters, but overall, it remained at a relatively high level, indicating efficient utilization of fixed assets.

2. Total Asset Turnover: This ratio measures the efficiency of the company in generating sales from all its assets. The total asset turnover ratio for Sprouts Farmers Market fluctuated slightly but generally remained stable over the period analyzed. The company maintained an average ratio around 2.1, suggesting that it efficiently utilized its total assets to generate sales revenue.

Overall, the long-term activity ratios of Sprouts Farmers Market indicate that the company effectively manages its assets to generate revenue, with consistent or improving levels of efficiency over the years.