Sprouts Farmers Market LLC (SFM)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 512,361 | 473,131 | 436,690 | 403,346 | 386,835 | 383,993 | 386,506 | 376,007 | 363,289 | 358,182 | 352,374 | 349,140 | 341,294 | 407,682 | 400,358 | 409,794 | 423,755 | 342,079 | 306,719 | 266,405 |
| Interest expense (ttm) | US$ in thousands | 5,199 | 7,352 | 9,648 | 9,957 | 9,779 | 8,639 | 8,214 | 8,539 | 9,135 | 10,580 | 10,895 | 11,227 | 11,261 | 11,523 | 11,729 | 12,669 | 14,505 | 16,594 | 19,175 | 20,735 |
| Interest coverage | 98.55 | 64.35 | 45.26 | 40.51 | 39.56 | 44.45 | 47.05 | 44.03 | 39.77 | 33.85 | 32.34 | 31.10 | 30.31 | 35.38 | 34.13 | 32.35 | 29.21 | 20.61 | 16.00 | 12.85 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $512,361K ÷ $5,199K
= 98.55
The interest coverage ratio for Sprouts Farmers Market LLC has shown consistent improvement over the years, indicating the company's ability to meet its interest obligations comfortably. Starting at 12.85 in March 2020, the ratio increased steadily to 98.55 by December 2024. This upward trend reflects the company's strengthening financial position and efficient management of its debt servicing requirements. The ratio exceeding 1 indicates that Sprouts Farmers Market LLC generates more than enough operating income to cover its interest expense, reassuring investors and creditors about the company's financial health and stability.
Peer comparison
Dec 31, 2024