Sprouts Farmers Market LLC (SFM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 350,231 | 342,663 | 345,347 | 340,241 | 358,360 | 347,873 | 343,342 | 340,482 | 334,076 | 375,625 | 368,198 | 377,311 | 391,665 | 345,648 | 306,824 | 265,393 | 217,360 | 199,184 | 212,413 | 222,782 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,148,550 | 1,115,010 | 1,075,150 | 1,050,930 | 1,046,460 | 1,040,830 | 1,013,690 | 1,011,970 | 959,876 | 968,083 | 949,123 | 966,870 | 881,293 | 807,946 | 743,277 | 670,722 | 581,952 | 559,921 | 531,649 | 556,521 |
| Return on total capital | 30.49% | 30.73% | 32.12% | 32.38% | 34.24% | 33.42% | 33.87% | 33.65% | 34.80% | 38.80% | 38.79% | 39.02% | 44.44% | 42.78% | 41.28% | 39.57% | 37.35% | 35.57% | 39.95% | 40.03% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $350,231K ÷ ($—K + $1,148,550K)
= 30.49%
Sprouts Farmers Market Inc has shown consistent improvement in its return on total capital over the past eight quarters, with the ratio steadily increasing from 26.99% in Q1 2022 to 30.35% in Q4 2023. This indicates that the company is effectively generating profits in relation to its total capital employed. The upward trend in return on total capital reflects the company's efficient utilization of both debt and equity to generate returns for its stakeholders. Furthermore, the gradual increase in this ratio suggests that Sprouts Farmers Market Inc is effectively managing its capital structure and investments to drive profitability. Overall, the consistent improvement in return on total capital underscores the company's strong financial performance and strategic decision-making.
Peer comparison
Dec 31, 2023