Sprouts Farmers Market LLC (SFM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.90 | 2.93 | 3.05 | 3.18 | 4.68 |
The solvency ratios of Sprouts Farmers Market Inc indicate a favorable financial position over the past five years. The debt-to-assets ratio has been consistently low, decreasing from 0.20 in 2019 to 0.04 in 2023, indicating that only a small portion of the company's assets are financed by debt.
Similarly, the debt-to-capital ratio has also shown a decreasing trend, from 0.49 in 2019 to 0.10 in 2023. This signifies that the majority of the company's capital is derived from equity rather than debt.
The debt-to-equity ratio has decreased from 0.95 in 2019 to 0.12 in 2023, further emphasizing the company's reliance on equity financing over debt financing.
Additionally, the financial leverage ratio has been decreasing over the years, indicating that the company has been reducing its reliance on debt to finance its operations. The decreasing trend in all these solvency ratios reflects a healthier financial position and reduced financial risk for Sprouts Farmers Market Inc.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 27.73 | 39.61 | 28.59 | 26.49 | 10.26 |
The interest coverage ratio for Sprouts Farmers Market Inc has shown a consistent and positive trend over the past five years. The ratio has steadily increased from 10.60 in 2019 to 60.01 in 2023. This indicates that the company's ability to cover its interest expenses with its earnings has significantly improved over the years. A higher interest coverage ratio suggests that the company is in a better position to meet its debt obligations and is less risky for creditors. Overall, the increasing trend in the interest coverage ratio reflects positively on the financial health and stability of Sprouts Farmers Market Inc.