Sprouts Farmers Market LLC (SFM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,833,110 | 6,710,160 | 6,587,660 | 6,490,370 | 6,395,180 | 6,309,970 | 6,227,610 | 6,153,850 | 6,088,190 | 6,196,970 | 6,264,730 | 6,384,720 | 6,453,970 | 6,220,230 | 6,080,410 | 5,851,660 | 5,618,830 | 5,523,180 | 5,410,210 | 5,315,060 |
| Receivables | US$ in thousands | 30,313 | 16,203 | 13,616 | 12,404 | 16,108 | 11,455 | 13,260 | 13,675 | 21,574 | 19,475 | 13,035 | 14,488 | 14,815 | 24,258 | 14,742 | 12,411 | 15,713 | 14,212 | 13,170 | 25,190 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,833,110K ÷ $30,313K
= 225.42
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher turnover ratio indicates a faster collection of receivables, which is generally seen as a positive indicator of liquidity and operational efficiency.
Analyzing Sprouts Farmers Market Inc's receivables turnover over the past eight quarters, we observe significant fluctuations. The ratio ranged from a low of 126.92 in Q4 2023 to a high of 551.77 in Q3 2022. The company experienced a substantial increase in receivables turnover in Q3 and Q2 2022, indicating more efficient collections during those periods.
The sharp contrasts in the turnover ratios suggest potential changes in the company's credit policies, customer payment behaviors, or sales volume fluctuations. It is important to further investigate the reasons behind these fluctuations to assess the company's overall financial health and operational effectiveness.
Overall, while the receivables turnover ratios for Sprouts Farmers Market Inc demonstrate variability, a downward trend in the ratio may warrant closer attention to ensure that the company is managing its receivables effectively.
Peer comparison
Dec 31, 2023