Sprouts Farmers Market LLC (SFM)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 581,952 | 559,921 | 531,649 | 556,521 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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
Sprouts Farmers Market Inc's debt-to-capital ratio has been gradually increasing over the past eight quarters, indicating a rising proportion of debt relative to the company's total capital. The trend shows a consistent increase, starting at 0.10 in Q4 2022 and reaching 0.18 in Q1 2023. This suggests that the company has been relying more on debt financing to fund its operations and growth initiatives.
A rising debt-to-capital ratio can indicate increasing financial leverage, which may pose risks if the company struggles to generate sufficient cash flow to meet its debt obligations. It is important to closely monitor this trend to ensure the company's financial health and ability to manage its debt levels effectively.
Overall, Sprouts Farmers Market Inc's increasing debt-to-capital ratio over the past eight quarters warrants further investigation into the company's financial strategy and management of its debt levels to assess the potential impact on its long-term sustainability and profitability.
Peer comparison
Dec 31, 2023