Sprouts Farmers Market LLC (SFM)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 512,361 | 473,131 | 436,690 | 403,346 | 386,835 | 383,993 | 386,506 | 376,007 | 363,289 | 358,182 | 352,374 | 349,140 | 341,294 | 407,682 | 400,358 | 409,794 | 423,755 | 342,079 | 306,719 | 266,405 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,321,890 | 1,343,490 | 1,269,280 | 1,211,030 | 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 |
| Return on total capital | 38.76% | 35.22% | 34.40% | 33.31% | 33.68% | 34.44% | 35.95% | 35.78% | 34.72% | 34.41% | 34.76% | 34.50% | 35.56% | 42.11% | 42.18% | 42.38% | 48.08% | 42.34% | 41.27% | 39.72% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $512,361K ÷ ($—K + $1,321,890K)
= 38.76%
Sprouts Farmers Market LLC has shown fluctuating trends in its return on total capital over the analyzed periods. The ratio peaked at 48.08% on December 31, 2020, indicating that the company generated a significant return in relation to the total capital invested. Subsequently, the ratio experienced a slight decline before stabilizing around the 35-42% range from March 31, 2021, to September 30, 2024. This suggests that the company's profitability in relation to the total capital remained relatively stable during this period.
It is essential to monitor the return on total capital as it reflects the company's efficiency in generating profits from the total capital employed, including both debt and equity. Consistent or increasing ratios indicate that the company is effectively utilizing its resources to drive returns for investors. However, declining ratios may raise concerns about the company's ability to maintain profitability relative to its capital base.
Overall, Sprouts Farmers Market LLC's return on total capital demonstrates periods of strength and stability, showcasing the company's ability to generate returns for its investors while efficiently managing its capital resources.
Peer comparison
Dec 31, 2024