Sprouts Farmers Market LLC (SFM)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,830,890 | 6,395,180 | 6,088,180 | 6,453,970 | 5,613,640 |
| Total current assets | US$ in thousands | 603,772 | 673,804 | 567,716 | 465,960 | 387,839 |
| Total current liabilities | US$ in thousands | 546,869 | 522,380 | 513,473 | 496,132 | 416,812 |
| Working capital turnover | 120.04 | 42.23 | 112.24 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,830,890K ÷ ($603,772K – $546,869K)
= 120.04
The working capital turnover ratio for Sprouts Farmers Market Inc has shown significant fluctuations over the past five years. In 2023, the ratio stood at 120.16, indicating that the company generated $120.16 in revenue for every $1 of working capital invested during the year. This represents a substantial increase from the previous year, where the ratio was at 42.29.
The sharp increase in the working capital turnover ratio from 2022 to 2023 suggests that Sprouts Farmers Market Inc has become more efficient in utilizing its working capital to generate revenue. This could be a result of improved inventory management, faster cash conversion cycles, or better receivables collection practices.
It is worth noting that the working capital turnover ratio was notably high in 2022 as well, at 112.45, indicating strong operational efficiency in that year. However, there is missing data for the ratio in 2021 and prior years, which limits the ability to track the company's performance over a longer period.
Overall, the increasing trend in the working capital turnover ratio for Sprouts Farmers Market Inc in recent years reflects positive operational efficiency and effective management of resources to drive revenue generation. Further analysis and comparison with industry benchmarks would provide deeper insights into the company's financial health and performance.
Peer comparison
Dec 31, 2023