ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sprouts Farmers Market's annualized net income for the quarter that ended in Dec. 2023 was $200 Mil. Sprouts Farmers Market's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,132 Mil. Therefore, Sprouts Farmers Market's annualized ROE % for the quarter that ended in Dec. 2023 was 17.69%.
The historical rank and industry rank for Sprouts Farmers Market's ROE % or its related term are showing as below:
SFM'
s ROE % Range Over the Past 10 Years
Min: 16.62 Med: 24.75 Max: 39.29
Current: 23.81
During the past 13 years, Sprouts Farmers Market's highest ROE % was 39.29%. The lowest was 16.62%. And the median was 24.75%.
SFM's ROE % is ranked better than 82.18% of 303
companies
in the Retail - Defensive industry
Industry Median: 9.67
vs SFM: 23.81
Sprouts Farmers Market ROE % Historical Data
The historical data trend for Sprouts Farmers Market's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Grocery Stores subindustry, Sprouts Farmers Market's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sprouts Farmers Market ROE % Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's ROE % distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's ROE % falls into.
Sprouts Farmers Market ROE % Calculation
Sprouts Farmers Market's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
ROE % is displayed in the 30-year financial page.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Sprouts Farmers Market ROE % Related Terms
Thank you for viewing the detailed overview of Sprouts Farmers Market's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sprouts Farmers Market (Sprouts Farmers Market) Business Description
Sprouts Farmers Market is an American specialty grocer offering an assortment highlighting fresh and naturally derived products. Its offerings are especially focused on produce, which constituted around 20% of sales in fiscal 2022. Founded in 2002, the chain is most heavily concentrated in California, which accounted for over one third of its 386 stores as of the end of fiscal 2022. All of the company's operations are in the United States, with its stores largely located in the southern half of the country. Private-label products accounted for nearly 20% of sales in fiscal 2022.
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