Sprouts Farmers Market LLC (SFM)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 25.88 | 25.68 | 26.02 | 26.08 | 27.34 | 27.86 | 28.07 | 27.26 | 27.95 | 27.45 | 26.90 | 25.27 | 24.90 | 25.08 | 25.21 | 24.57 | 22.69 | 23.64 | 23.64 | 23.92 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 25.88 | 25.68 | 26.02 | 26.08 | 27.34 | 27.86 | 28.07 | 27.26 | 27.95 | 27.45 | 26.90 | 25.27 | 24.90 | 25.08 | 25.21 | 24.57 | 22.69 | 23.64 | 23.64 | 23.92 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.88 + — – —
= 25.88
The cash conversion cycle of Sprouts Farmers Market LLC has been relatively stable over the provided periods, ranging from a low of 22.69 days to a high of 28.07 days. It measures the time it takes for the company to convert its investment in inventory and other inputs into cash flows from sales.
The trend shows a slight increase in the cash conversion cycle over time, indicating a potential delay in the company's ability to convert its investments into cash. This may suggest inefficiencies in managing inventory, collection of receivables, or payment of payables.
Overall, monitoring and potentially improving the cash conversion cycle is crucial for Sprouts Farmers Market LLC to optimize working capital management and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2024