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

Company name
Symbol
Return on total capital
Sprouts Farmers Market LLC
SFM
38.76%
Grocery Outlet Holding Corp
GO
4.31%
Kroger Company
KR
48.69%