Sprouts Farmers Market LLC (SFM)
Working capital 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 |
| Total current assets | US$ in thousands | 603,772 | 620,551 | 633,337 | 655,948 | 673,804 | 673,031 | 644,607 | 640,710 | 567,716 | 586,903 | 551,379 | 577,327 | 465,960 | 437,979 | 612,858 | 530,782 | 387,839 | 411,950 | 380,048 | 333,202 |
| Total current liabilities | US$ in thousands | 546,869 | 541,545 | 538,226 | 515,131 | 522,380 | 525,138 | 515,349 | 523,693 | 513,473 | 507,160 | 483,542 | 490,373 | 496,132 | 509,581 | 572,756 | 547,395 | 416,812 | 472,116 | 449,605 | 377,732 |
| 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 | — | — | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,833,110K ÷ ($603,772K – $546,869K)
= 120.08
Working capital turnover is a financial ratio that measures how efficiently a company's working capital is being used to generate sales revenue. A higher working capital turnover indicates that the company is efficiently managing its working capital to generate sales.
The working capital turnover for Sprouts Farmers Market Inc has shown a fluctuating trend over the past eight quarters. In Q4 2023, the working capital turnover was 120.16, which was the highest among the data provided. This indicates that the company was able to generate $120.16 of sales for every dollar of working capital invested during that quarter.
The working capital turnover decreased in Q3 2023 to 85.00, then further decreased in Q2 2023 to 69.32, and again in Q1 2023 to 46.13. These declining trends suggest that the company may have been less efficient in utilizing its working capital to generate sales revenue during those quarters.
Comparing the latest data to the same quarter of the previous year, there has been a significant improvement in the working capital turnover. In Q4 2023, the ratio of 120.16 is much higher than the ratio of 42.29 in Q4 2022, indicating that the company has significantly improved its working capital management efficiency over the past year.
Overall, the fluctuating trend in Sprouts Farmers Market Inc's working capital turnover indicates varying levels of efficiency in utilizing working capital to generate sales revenue. It is important for the company to closely monitor and manage its working capital to ensure optimal performance and profitability.
Peer comparison
Dec 31, 2023