Sprouts Farmers Market LLC (SFM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.75 | 2.90 | 2.93 | 3.05 | 3.18 |
Based on the provided data for Sprouts Farmers Market LLC, the solvency ratios indicate a strong financial position with low levels of debt relative to its assets, capital, and equity.
The Debt-to-assets ratio remained consistently at 0.00 over the five-year period from 2020 to 2024, suggesting that the company has no debt in relation to its total assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also stood at 0.00 across the same period, indicating that the company's capital and equity have not been financed by debt.
Additionally, the Financial leverage ratio showed a declining trend from 3.18 in 2020 to 2.75 in 2024. A decreasing financial leverage ratio usually indicates a reduction in financial risk as the company is relying less on debt to finance its operations and investments.
Overall, based on these solvency ratios, Sprouts Farmers Market LLC appears to have a strong solvency position with minimal debt levels and a conservative capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 102.22 | 53.96 | 39.83 | 28.59 | 26.49 |
The interest coverage ratio for Sprouts Farmers Market LLC has exhibited a consistently positive trend over the past five years, reflecting the company's ability to comfortably meet its interest obligations. The ratio has improved from 26.49 at the end of December 31, 2020, to a robust 102.22 as of December 31, 2024. This upward trajectory indicates a significant enhancement in the company's capacity to cover its interest expenses with operating earnings.
The notable increase in the interest coverage ratio signifies that Sprouts Farmers Market LLC is generating ample earnings to service its debt obligations multiple times over. This trend is indicative of the company's strong financial health and operational efficiency in managing its debt burden. With a ratio exceeding 100 in 2024, the company has a substantial buffer to handle fluctuations in its earnings and interest expenses.
Overall, the consistent improvement in Sprouts Farmers Market LLC's interest coverage ratio over the years reflects a robust financial performance and sound debt management practices, instilling confidence in the company's ability to honor its financial commitments.