Sprouts Farmers Market LLC (SFM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 201,794 | 251,780 | 259,484 | 294,905 | 293,233 | 316,042 | 288,965 | 324,301 | 245,287 | 260,218 | 220,909 | 256,019 | 169,697 | 137,518 | 328,116 | 247,101 | 85,314 | 79,912 | 58,639 | 19,502 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 687 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.37 | 0.46 | 0.48 | 0.57 | 0.56 | 0.60 | 0.56 | 0.62 | 0.48 | 0.51 | 0.46 | 0.52 | 0.34 | 0.27 | 0.57 | 0.45 | 0.20 | 0.17 | 0.13 | 0.05 |
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 shown fluctuations over the past eight quarters. The ratio, which represents the company's ability to cover its short-term liabilities with cash and cash equivalents, ranged from a low of 0.41 in Q4 2023 to a high of 0.69 in Q3 2022.
Generally, a higher cash ratio indicates a stronger ability to cover short-term obligations with available cash. Conversely, a lower ratio may signal potential liquidity challenges. The downward trend observed in the recent quarters could be a cause for concern as it suggests a decrease in the company's ability to meet its short-term obligations solely with cash assets.
It is essential for stakeholders to monitor the cash ratio closely to ensure that Sprouts Farmers Market Inc maintains a healthy liquidity position to fulfill its financial obligations effectively. Additional analysis of the company's cash flow and working capital management practices may provide further insights into its overall financial health and liquidity management strategies.
Peer comparison
Dec 31, 2023