Sprouts Farmers Market LLC (SFM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 350,231 | 358,360 | 334,076 | 391,665 | 217,360 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,148,550 | 1,046,460 | 959,876 | 881,293 | 581,952 |
| Return on total capital | 30.49% | 34.24% | 34.80% | 44.44% | 37.35% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $350,231K ÷ ($—K + $1,148,550K)
= 30.49%
Sprouts Farmers Market Inc has exhibited a consistent performance in terms of return on total capital over the past five years. The return on total capital has ranged from 19.84% to 34.24%, indicating the company's ability to generate earnings in relation to its total capital employed.
The highest return on total capital was recorded on Jan 3, 2021, at 34.24%, suggesting efficient utilization of both equity and debt to generate profits. However, despite a slight decrease in the most recent year, ending on Dec 31, 2023, with a return of 30.35%, the company continues to demonstrate a strong ability to generate returns on the total capital invested.
Overall, Sprouts Farmers Market Inc's consistent performance in generating returns on total capital reflects effective capital allocation and operational efficiency, indicating a stable financial position and potential for sustainable growth in the future.
Peer comparison
Dec 31, 2023