Sprouts Farmers Market LLC (SFM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 511,704 | 350,231 | 360,381 | 334,076 | 391,665 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,321,890 | 1,148,550 | 1,046,460 | 959,876 | 881,293 |
| Return on total capital | 38.71% | 30.49% | 34.44% | 34.80% | 44.44% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $511,704K ÷ ($—K + $1,321,890K)
= 38.71%
The return on total capital for Sprouts Farmers Market LLC has displayed fluctuations over the past five years. Starting at 44.44% as of December 31, 2020, the ratio decreased to 34.80% by December 31, 2021. It continued to decline slightly to 34.44% by December 31, 2022, and further dropped to 30.49% by the end of December 31, 2023. However, by the end of December 31, 2024, there was an improvement in the return on total capital to 38.71%.
Overall, the trend indicates some volatility in the company's efficiency in generating returns from its total capital over the period, with a significant initial decline followed by a slight recovery in the most recent year. This suggests a need for further analysis to understand the factors influencing these fluctuations and to potentially implement strategies to enhance the company's return on total capital in the future.
Peer comparison
Dec 31, 2024