Sprouts Farmers Market LLC (SFM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 265,159 | 201,794 | 293,233 | 245,287 | 169,697 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 679,968 | 546,869 | 522,380 | 513,473 | 496,132 |
| Cash ratio | 0.39 | 0.37 | 0.56 | 0.48 | 0.34 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($265,159K
+ $—K)
÷ $679,968K
= 0.39
From the data provided, Sprouts Farmers Market LLC has shown an increasing trend in its cash ratio over the past five years. The cash ratio measures the company's ability to cover its short-term obligations with its available cash and cash equivalents.
In December 31, 2020, the cash ratio was 0.34, indicating that for every dollar of current liabilities, the company had $0.34 in cash. By December 31, 2024, the cash ratio had increased to 0.39, suggesting that the company improved its liquidity position over this period.
The overall trend implies that Sprouts Farmers Market LLC has been managing its cash resources effectively and has a sufficient level of liquidity to meet its short-term obligations. However, it is important to note that the cash ratio is just one measure of liquidity, and a comprehensive analysis of the company's financial health would require considering other liquidity ratios and factors as well.
Peer comparison
Dec 31, 2024