Sprouts Farmers Market LLC (SFM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 675,520 | 603,772 | 673,804 | 567,716 | 465,960 |
| Total current liabilities | US$ in thousands | 679,968 | 546,869 | 522,380 | 513,473 | 496,132 |
| Current ratio | 0.99 | 1.10 | 1.29 | 1.11 | 0.94 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $675,520K ÷ $679,968K
= 0.99
Based on the data provided, the current ratio of Sprouts Farmers Market LLC has displayed some fluctuations over the years. The current ratio is a measure of a company's ability to meet its short-term obligations with its current assets.
In December 31, 2020, the current ratio was 0.94, indicating that the company had slightly less current assets than current liabilities, which may raise concerns about its liquidity position. However, over the following years, there was an improvement in the current ratio, reaching 1.11 in December 31, 2021, 1.29 in December 31, 2022, and 1.10 in December 31, 2023.
This upward trend indicates that the company has been able to better cover its short-term obligations with its current assets. However, by December 31, 2024, the current ratio decreased to 0.99, which suggests a slight deterioration in the company's ability to meet its short-term liabilities.
Overall, the current ratio trend of Sprouts Farmers Market LLC shows improvements in liquidity up to 2023, but a slight decline in 2024. It is important for the company to continuously monitor its liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024