Sprouts Farmers Market LLC (SFM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.92% | 36.72% | 36.29% | 36.87% | 33.75% |
| Operating profit margin | 5.13% | 5.60% | 5.49% | 6.07% | 3.87% |
| Pretax margin | 5.03% | 5.46% | 5.30% | 5.84% | 3.49% |
| Net profit margin | 3.79% | 4.08% | 4.01% | 4.45% | 2.67% |
Sprouts Farmers Market Inc has shown consistency in its gross profit margin over the past five years, averaging around 36%. This indicates the company's ability to effectively manage its cost of goods sold and generate profit from its sales.
The operating profit margin has also remained relatively stable, hovering between 5.55% to 6.05% over the same period. This suggests that Sprouts Farmers Market has been efficient in controlling its operating expenses while generating profit from its core business operations.
The pretax margin has shown a slight fluctuation but has generally been within a narrow range of 5.03% to 5.83%. This indicates the effectiveness of the company in managing its non-operating expenses and taxes relative to its revenue.
The net profit margin, representing the bottom line profitability, has also been consistent, averaging around 4% over the five-year period. This suggests that after accounting for all expenses, including interest and taxes, Sprouts Farmers Market has been able to maintain a healthy level of net income relative to its revenue.
Overall, the profitability ratios indicate that Sprouts Farmers Market Inc has been able to maintain stable and healthy profitability levels over the past five years, reflecting its efficient cost management and operational effectiveness in the competitive retail industry.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.53% | 11.67% | 11.43% | 13.96% | 7.98% |
| Return on assets (ROA) | 7.78% | 8.51% | 8.35% | 10.24% | 5.50% |
| Return on total capital | 30.49% | 34.24% | 34.80% | 44.44% | 37.35% |
| Return on equity (ROE) | 22.54% | 24.96% | 25.44% | 32.62% | 25.71% |
Sprouts Farmers Market Inc has shown consistent profitability over the past five years based on various key profitability ratios.
The operating return on assets (Operating ROA) has ranged from 11.59% to 13.94% over the past five years, indicating that the company has generated operating income efficiently from its assets, although there was a slight dip in 2022. This ratio has remained relatively stable and healthy.
The return on assets (ROA) has also been consistently strong, ranging from 7.78% to 10.24%. This shows that Sprouts Farmers Market Inc has been effectively generating profits relative to its total assets, with a notable increase in 2021 compared to the preceding years.
The return on total capital has shown consistent improvement, ranging from 27.75% to 34.24% over the period under consideration. This indicates that the company has been efficient in generating returns for both equity and debt holders.
Moreover, the return on equity (ROE) has been generally favorable, ranging from 22.54% to 32.62%. This indicates that the company has been able to generate strong returns for its shareholders, although there was a slight decline in 2023 compared to the preceding years.
Overall, Sprouts Farmers Market Inc's profitability ratios demonstrate a trend of solid operational performance and efficient use of assets and capital to generate profits for its stakeholders.