Sprouts Farmers Market Was Named One Of The Top Ten Fastest

1901 WordsMar 6, 20178 Pages
Sprouts Farmers Market was named one of the top ten fastest growing retailers by Supermarket News in 2015 (Webber, 2015). Sprouts’ passion is healthy living and healthy eating and hoping to “inspire, educate, and empower” people to lead a better healthier life (About Sprouts, 2017). The passion for a better healthier life, how does that translate to financial success? The following will explore this question by presenting data on different financial ratio that will show how Sprouts is performing. Additionally, horizontal and vertical analysis was conducted and the findings are also examined. Lastly, a deliberation on the overall financial results calculated and the financial health of Sprouts. Ratio Analysis When examining Sprouts’…show more content…
These percentages and/or net sales would be linked to new store openings and moving into other markets thus increasing sales, which is part of Sprouts initiatives for expansion. Additionally, the current ratio, the debt ratio, and the debt equity were also computed. The current ratio lets investors know Sprouts ability to pay short-term debt (Gibson, 2013). The ratio results for 2015 was 1.50 times, 2014 was 1.51 times and 2013 was 1.32 times. While the current strived for current ratio is 2.0 times many do meet this standard and Sprouts stability could be attributed to their ability to control the receivables and/or inventory (Gibson, 2013). Meanwhile, the debt ratio tells investors Sprouts ability to pay long-term debt and takes into account the total liabilities and the total assets (Gibson, 2013). In addition it tells creditors, in this case, how well they are or not protected in the event Sprouts is becomes insolvent, thus a lower percentage is desired. The debt ratio for 2015 was 42.30%, 2014 was 49.94%, and 2013 was 56.18%. While not bad percentages, one also needs to be reminded here that in 2013, Sprouts just went public and just

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