Sprouts Farmers Market LLC (SFM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 265,159 | 201,794 | 293,233 | 245,287 | 169,697 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 679,968 | 546,869 | 522,380 | 513,473 | 496,132 |
| Quick ratio | 0.39 | 0.37 | 0.56 | 0.48 | 0.34 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($265,159K
+ $—K
+ $—K)
÷ $679,968K
= 0.39
The quick ratio of Sprouts Farmers Market LLC has shown variation over the years as follows:
- In December 31, 2020, the quick ratio was 0.34, indicating that the company had $0.34 in easily liquidable assets to cover each dollar of current liabilities.
- By December 31, 2021, the quick ratio improved to 0.48, suggesting enhanced liquidity and a stronger ability to meet short-term obligations.
- Further improvement was seen by December 31, 2022, with a quick ratio of 0.56, indicating a more robust liquidity position compared to the previous year.
- However, by December 31, 2023, the quick ratio dropped to 0.37, signaling a potential decline in the company's ability to quickly cover its short-term liabilities with its liquid assets.
- By December 31, 2024, the quick ratio slightly improved to 0.39. While still below the ideal ratio of 1, this suggests a moderate ability to meet current obligations with liquid assets.
Overall, the trend in Sprouts Farmers Market LLC's quick ratio indicates some fluctuations in liquidity over the years, with a notable improvement in the midpoint but a slight decrease by the end of the period. It is important for the company to monitor and manage its liquidity position to ensure it can meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024