Sprouts Farmers Market LLC (SFM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| 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 |
| Debt-to-equity 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 |
| 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 |
Sprouts Farmers Market Inc's solvency ratios demonstrate a favorable trend over the past eight quarters. The debt-to-assets ratio has decreased steadily from 0.08 in Q4 2022 to 0.04 in Q4 2023, indicating that the company's level of debt relative to its total assets has improved.
Similarly, the debt-to-capital ratio has shown a declining trend, decreasing from 0.20 in Q4 2022 to 0.10 in Q4 2023. This suggests that the company has been successful in reducing its reliance on borrowed capital in funding its operations.
The debt-to-equity ratio has also exhibited a decreasing pattern over the same period, dropping from 0.25 in Q4 2022 to 0.12 in Q4 2023. This indicates that Sprouts Farmers Market Inc has been able to decrease its level of debt in relation to its equity, which is a positive sign for investors and creditors.
Moreover, the financial leverage ratio has generally remained stable around the 2.90 to 3.02 range, indicating that the company has been able to effectively manage its financial leverage and maintain a healthy balance between debt and equity financing.
Overall, based on the solvency ratios observed, Sprouts Farmers Market Inc appears to have a strong financial position with improving debt metrics, which may signify greater financial stability and reduced risk in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 35.81 | 39.66 | 42.04 | 39.85 | 39.23 | 32.88 | 31.51 | 30.33 | 29.67 | 32.60 | 31.39 | 29.78 | 27.00 | 20.83 | 16.00 | 12.80 | 10.40 | 8.61 | 8.50 | 8.49 |
Sprouts Farmers Market Inc's interest coverage ratio has shown a positive trend over the past eight quarters, indicating an improving ability to meet its interest obligations. The company's interest coverage ratio has consistently increased from 29.28 in Q1 2022 to 60.01 in Q4 2023, reflecting a strengthening financial position.
A higher interest coverage ratio suggests that Sprouts Farmers Market Inc is generating sufficient earnings to cover its interest expenses, which is a positive indicator of financial health. This trend may signal improved profitability, efficiency, or cost management within the company.
Overall, the steady improvement in Sprouts Farmers Market Inc's interest coverage ratio over the analyzed period is a favorable sign of its ability to manage debt and interest costs effectively. Investors and stakeholders may view this trend positively as it indicates a lower risk of defaulting on debt obligations. However, ongoing monitoring of the interest coverage ratio is advisable to assess the company's financial stability and sustainability.