Sprouts Farmers Market LLC (SFM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,521,840 | 2,348,560 | 2,209,210 | 2,379,290 | 1,894,820 |
| Revenue | US$ in thousands | 6,830,890 | 6,395,180 | 6,088,180 | 6,453,970 | 5,613,640 |
| Gross profit margin | 36.92% | 36.72% | 36.29% | 36.87% | 33.75% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,521,840K ÷ $6,830,890K
= 36.92%
The gross profit margin of Sprouts Farmers Market Inc has shown consistency and improvement over the past five years. The margin has displayed a stable upward trend, increasing from 33.63% in December 2019 to 36.88% in December 2023. This indicates that the company has been effectively managing its cost of goods sold and generating a higher percentage of revenue as gross profit. The consistent improvement in the gross profit margin signifies stronger operational efficiency and pricing strategies, which may have positively impacted the company's overall profitability. The ability to maintain and increase the gross profit margin reflects positively on Sprouts Farmers Market Inc's ability to generate profits from its core business activities.
Peer comparison
Dec 31, 2023