Sprouts Farmers Market LLC (SFM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,327,430 | 3,070,380 | 2,923,120 | 2,806,400 | 2,722,980 |
| Total stockholders’ equity | US$ in thousands | 1,148,550 | 1,046,460 | 959,876 | 881,293 | 581,952 |
| Financial leverage ratio | 2.90 | 2.93 | 3.05 | 3.18 | 4.68 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,327,430K ÷ $1,148,550K
= 2.90
The financial leverage ratio for Sprouts Farmers Market Inc has shown a declining trend over the past five years, decreasing from 4.68 in 2019 to 2.90 in 2023. This indicates that the company has reduced its dependence on debt to finance its operations and growth. A lower financial leverage ratio suggests that the company has a stronger equity base relative to its debt, which can be viewed positively by investors as it indicates lower financial risk. However, it is important to note that a very low financial leverage ratio could also indicate underutilization of debt financing, potentially missing out on leveraging opportunities for growth. Overall, the decreasing trend in Sprouts Farmers Market Inc's financial leverage ratio signals improved financial stability and a healthier financial position over the years.
Peer comparison
Dec 31, 2023