Kroger Company (KR)

Short-term

Turnover ratios

Based on the provided data for Kroger Company's activity ratios:

1. Inventory Turnover:
- The company's inventory turnover has shown a general increasing trend over the years, from 15.59 in January 28, 2023, to 16.16 in January 31, 2025.
- This indicates that Kroger is selling its inventory more efficiently as the ratio measures how many times the company sells its inventory during a period.

2. Receivables Turnover:
- The data shows missing values for receivables turnover in some years.
- Based on the available data, the company had a receivables turnover of 66.12 in January 28, 2023, and 70.04 in February 3, 2024.
- This ratio reflects how efficiently the company collects its outstanding receivables.

3. Payables Turnover:
- Similar to receivables turnover, there are missing values for payables turnover in some years.
- Kroger's payables turnover decreased from 16.56 in January 28, 2023, to 11.36 in February 3, 2024, suggesting a decrease in the speed at which the company pays its suppliers.

4. Working Capital Turnover:
- There is no data available for the working capital turnover for any of the years provided.
- This ratio typically indicates how effectively a company is using its working capital to generate sales.

Overall, an increase in inventory turnover and stable or increasing receivables turnover ratios can be seen as positive indicators of efficient operations, while the decreasing payables turnover may require further investigation to understand the company's payment practices and relationships with suppliers.

---

Average number of days

Based on the provided data on Kroger Company's activity ratios, here is the analysis:

1. Days of Inventory on Hand (DOH):
- Kroger's inventory management has shown a slight improvement over the years, with the DOH decreasing from 23.69 days on January 31, 2023, to 22.59 days on January 31, 2025. This indicates that the company is becoming more efficient in managing its inventory levels and turning over its stock faster.

2. Days of Sales Outstanding (DSO):
- Kroger has maintained a relatively low DSO, with figures ranging from 5.21 days on February 3, 2024, to no data available for January 31, 2023 and January 31, 2024. A low DSO indicates that the company is efficient in collecting payments from its customers, which is a positive sign for its cash flow management.

3. Number of Days of Payables:
- Kroger's payables period has shown variability, with 22.04 days on January 28, 2023, increasing to 32.12 days on February 3, 2024. The lack of data for certain periods makes it challenging to assess the trend accurately. A longer payables period can suggest that Kroger is taking longer to pay its suppliers, which may impact supplier relationships and cash flow.

Overall, Kroger's activity ratios demonstrate some positive trends in inventory management and receivables collection efficiency. However, the variability in payables days requires further analysis to understand its impact on the company's overall working capital management.

---

Long-term

The fixed asset turnover ratio measures how efficiently a company generates sales from its investment in fixed assets. Kroger Company's fixed asset turnover ratio has shown fluctuation over the years, with a value of 6.51 on January 28, 2023, a decrease to 4.72 on January 31, 2023, then a missing value on January 31, 2024, and a subsequent increase to 6.43 on February 3, 2024. This ratio indicates that Kroger has been able to generate $6.51, $4.72, or $6.43 in sales for every dollar invested in fixed assets during the respective periods.

On the other hand, the total asset turnover ratio reflects how well a company utilizes its total assets to generate revenue. Kroger's total asset turnover ratio has remained relatively stable, ranging from 2.80 on January 31, 2025, to 2.99 on January 31, 2023. This ratio signifies that Kroger generated $2.80 to $2.99 in revenue for every dollar of total assets during the specified periods.

Overall, despite fluctuations in the fixed asset turnover ratio, Kroger has maintained a stable performance in terms of utilizing its total assets efficiently to generate revenue, as indicated by the total asset turnover ratio. The company's ability to manage its fixed assets effectively and generate revenue from its total assets is crucial for long-term success and profitability.