Sprouts Farmers Market LLC (SFM)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,148,550 | 1,046,460 | 959,876 | 881,293 | 581,952 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,148,550K)
= 0.00
The debt-to-capital ratio of Sprouts Farmers Market Inc has shown a consistent downward trend over the past five years, indicating an improvement in the company's leverage position. The ratio decreased from 0.49 in December 2019 to 0.10 in December 2023. This suggests that the company has reduced its reliance on debt financing in relation to its total capital structure.
The decreasing trend in the debt-to-capital ratio can be seen as a positive sign as it indicates a lower risk of financial distress and greater financial stability. A lower debt-to-capital ratio implies that the company has a higher proportion of equity in its capital structure, which can provide a cushion against economic downturns or unexpected challenges.
Overall, the decreasing trend in Sprouts Farmers Market Inc's debt-to-capital ratio reflects a prudent financial management strategy focused on reducing debt levels and enhancing the company's financial health.
Peer comparison
Dec 31, 2023