Sprouts Farmers Market LLC (SFM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 201,794 | 293,233 | 245,287 | 169,697 | 85,314 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 546,869 | 522,380 | 513,473 | 496,132 | 416,812 |
| Cash ratio | 0.37 | 0.56 | 0.48 | 0.34 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($201,794K
+ $—K)
÷ $546,869K
= 0.37
The cash ratio of Sprouts Farmers Market Inc has fluctuated over the past five years, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio decreased to 0.41 from 0.63 in 2022. This implies that the company has a lower proportion of cash and cash equivalents relative to its current liabilities in 2023 compared to the previous year.
The cash ratio was at its highest in 2022 at 0.63, suggesting a strong liquidity position, which may have been influenced by effective cash management strategies or increased cash reserves.
In 2021, the cash ratio was 0.38, showing a slight decrease from the previous year but still above the ratio seen in 2019. This indicates that the company's liquidity position in 2021 was relatively stable.
The cash ratio in 2019 was at its lowest at 0.23, suggesting that the company had a lower ability to cover its short-term obligations with its cash and cash equivalents compared to the other years analyzed.
Overall, fluctuations in Sprouts Farmers Market Inc's cash ratio over the past five years may reflect changes in its cash management practices, operating efficiency, or variations in its financial performance impacting its liquidity position.
Peer comparison
Dec 31, 2023