Sprouts Farmers Market LLC (SFM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 603,772 | 673,804 | 567,716 | 465,960 | 387,839 |
| Total current liabilities | US$ in thousands | 546,869 | 522,380 | 513,473 | 496,132 | 416,812 |
| Current ratio | 1.10 | 1.29 | 1.11 | 0.94 | 0.93 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $603,772K ÷ $546,869K
= 1.10
The current ratio is a liquidity ratio that indicates a company's ability to meet its short-term obligations with its current assets. In the case of Sprouts Farmers Market Inc, the current ratio has fluctuated over the past five years, ranging from 0.93 to 1.29.
As of December 31, 2023, Sprouts Farmers Market Inc had a current ratio of 1.10, indicating that the company had $1.10 in current assets for every dollar of current liabilities. This suggests that the company's short-term liquidity position weakened compared to the previous year when the current ratio was 1.29.
Although the current ratio has been above 1.0 in recent years, indicating that Sprouts Farmers Market Inc has had more current assets than current liabilities, it is essential to note that a current ratio of 1.0 or higher is generally considered a healthy sign of liquidity. However, a significantly high current ratio may indicate an inefficient use of assets, while a low current ratio may signal potential liquidity issues.
Overall, the trend in Sprouts Farmers Market Inc's current ratio reflects fluctuations in its short-term liquidity position, and further analysis of the company's management of current assets and liabilities is necessary to provide a more comprehensive assessment of its financial health.
Peer comparison
Dec 31, 2023