Sprouts Financial Analysis

5164 words 21 pages
Financial Statement Analysis Project
Sprouts Farmer Markets vs Whole Foods

Financial Accounting and Reporting
ACTG 4610

August 10, 2015

Table of Contents

1. Background of Sprouts Farmers Market 3
1.1 Description of the company and its business 3
1.2 Business Environment 3
2. Income Statement 4
2.1 Major Sources of Operating Revenues and Revenue Recognition Method 4
2.2 Major Types of Operating Expenses 5
2.3 Significant changes in operating revenues and expenses 5
2.4 Other items on the income statement 6
3. Balance Sheet 7
3.1 Current and long-term assets 7
3.2 Current and long-term liabilities 9
3.3 Major Components of Stockholders’ Equity
…show more content…
Political Climate & Significant Risks (p.14-15, 17-34 10-K)
Sprouts definitely has not chosen the easiest market to operate in. First of all, there is a lot of competition but secondly and maybe even more important, Sprouts is subject to regulation by various government agencies, including the FDA, the USDA, etc., as well as various state and local agencies. Basically, Sprouts has to comply with numerous laws and regulations and this may increase their costs, limit or eliminate their ability to sell certain products, raise regulatory enforcement risks not present in the past, or otherwise adversely affect their business, reputation, results of operations and financial condition. But of course, that is not the only risk Sprouts is faced with. These risks include but are not limited to the following: * Their continued growth depends largely on new stores, and failure to open new stores could impact their business and stock price in a negative way. * Competition in their industry is intense, and failure to compete successfully may adversely affect our revenues and profitability. * If they are unable to successfully identify market trends and react to changing consumer preferences in a timely manner, their sales may decrease * Their management has limited experience managing a public company, and their current resources may not be sufficient to fulfill our public company obligations. * The current geographic

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