Sprouts Farmers Market LLC (SFM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,640,700 | 3,327,430 | 3,070,380 | 2,923,120 | 2,806,400 |
| Total stockholders’ equity | US$ in thousands | 1,321,890 | 1,148,550 | 1,046,460 | 959,876 | 881,293 |
| Financial leverage ratio | 2.75 | 2.90 | 2.93 | 3.05 | 3.18 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,640,700K ÷ $1,321,890K
= 2.75
The financial leverage ratio of Sprouts Farmers Market LLC has shown a decreasing trend over the past five years, declining from 3.18 in 2020 to 2.75 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a stronger financial position and less risk of financial distress, as the company is using less debt relative to its equity. Sprouts Farmers Market LLC's decreasing financial leverage ratio reflects a prudent approach to managing its capital structure and may be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2024