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Sprouts Farmers Market (STU:1FA) Financial Strength : 7 (As of Dec. 2024)


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What is Sprouts Farmers Market Financial Strength?

Sprouts Farmers Market has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Sprouts Farmers Market's Interest Coverage for the quarter that ended in Dec. 2024 was 285.70. Sprouts Farmers Market's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.21. As of today, Sprouts Farmers Market's Altman Z-Score is 6.56.


Competitive Comparison of Sprouts Farmers Market's Financial Strength

For the Grocery Stores subindustry, Sprouts Farmers Market's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sprouts Farmers Market's Financial Strength falls into.



Sprouts Farmers Market Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Sprouts Farmers Market's Interest Expense for the months ended in Dec. 2024 was €-0 Mil. Its Operating Income for the months ended in Dec. 2024 was €105 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was €1,459 Mil.

Sprouts Farmers Market's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*105.423/-0.369
=285.70

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Sprouts Farmers Market's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(144.894 + 1458.782) / 7625.592
=0.21

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Sprouts Farmers Market has a Z-score of 6.56, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.56 is strong.

* 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.


Sprouts Farmers Market  (STU:1FA) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Sprouts Farmers Market has the Financial Strength Rank of 7.


Sprouts Farmers Market Financial Strength Related Terms

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Sprouts Farmers Market Business Description

Traded in Other Exchanges
Address
5455 East High Street, Suite 111, Phoenix, AZ, USA, 85054
Sprouts Farmers Market Inc offers a unique specialty grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspire wellness naturally with a?carefully curated?assortment of better-for-you products paired with purpose-driven people. The company continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based, and gluten-free. It approximately has 407 stores in 23 states. It is one of the largest and fastest-growing specialty retailers of fresh, natural and organic food in the United States.

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