Sprouts Farmers Market LLC (SFM)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 30,313 | 16,203 | 13,616 | 12,404 | 16,108 | 11,455 | 13,260 | 13,675 | 21,574 | 19,475 | 13,035 | 14,488 | 14,815 | 24,258 | 14,742 | 12,411 | 15,713 | 14,212 | 13,170 | 25,190 |
| 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 |
| Quick ratio | 0.42 | 0.49 | 0.51 | 0.60 | 0.59 | 0.62 | 0.59 | 0.65 | 0.52 | 0.55 | 0.48 | 0.55 | 0.37 | 0.32 | 0.60 | 0.47 | 0.24 | 0.20 | 0.16 | 0.12 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($201,794K
+ $—K
+ $30,313K)
÷ $546,869K
= 0.42
The quick ratio of Sprouts Farmers Market Inc has shown a declining trend over the past eight quarters, indicating a weakening liquidity position. The quick ratio decreased from 0.70 in Q1 2022 to 0.51 in Q4 2023. This decline suggests that the company may have a decreased ability to meet its short-term obligations with its most liquid assets.
A quick ratio below 1 implies that the company may struggle to cover its current liabilities with its quick assets, such as cash, marketable securities, and accounts receivable. The trend of decreasing quick ratio raises concerns about the company's ability to manage its short-term financial obligations efficiently without relying on additional funding sources.
It is important for investors and stakeholders to closely monitor the quick ratio of Sprouts Farmers Market Inc to assess its liquidity risk and financial health accurately. Management may need to implement strategies to improve liquidity, such as managing inventory levels, optimizing receivables collection, or securing additional funding sources to enhance short-term liquidity.
Peer comparison
Dec 31, 2023