Sprouts Farmers Market LLC (SFM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,327,430 | 3,290,510 | 3,208,200 | 3,169,390 | 3,070,380 | 3,017,520 | 2,987,320 | 2,997,750 | 2,923,120 | 2,926,420 | 2,878,360 | 2,896,740 | 2,806,400 | 2,782,220 | 2,963,190 | 2,855,200 | 2,722,980 | 2,764,870 | 2,692,490 | 2,616,600 |
| 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 |
| Financial leverage ratio | 2.90 | 2.95 | 2.98 | 3.02 | 2.93 | 2.90 | 2.95 | 2.96 | 3.05 | 3.02 | 3.03 | 3.00 | 3.18 | 3.44 | 3.99 | 4.26 | 4.68 | 4.94 | 5.06 | 4.70 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,327,430K ÷ $1,148,550K
= 2.90
Financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. In the case of Sprouts Farmers Market Inc, the financial leverage ratio has fluctuated slightly over the past eight quarters, ranging from a low of 2.90 in Q4 2022 to a high of 3.02 in Q1 2023.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. Sprouts Farmers Market Inc's ratios consistently above 2 suggest that the company relies more on debt financing compared to equity.
Overall, the trend in Sprouts Farmers Market Inc's financial leverage ratio shows a moderate level of leverage over the period analyzed. Investors and stakeholders may want to monitor the company's leverage ratio to assess its ability to meet debt obligations and manage financial risks effectively.
Peer comparison
Dec 31, 2023