Kroger Company (KR)
Receivables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 149,598,000 | 147,723,000 | 137,317,000 | 131,954,000 | 121,683,000 |
| Receivables | US$ in thousands | 2,136,000 | 2,234,000 | 1,828,000 | 1,781,000 | 1,706,000 |
| Receivables turnover | 70.04 | 66.12 | 75.12 | 74.09 | 71.33 |
February 3, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $149,598,000K ÷ $2,136,000K
= 70.04
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. In the case of Kroger Company, the trend in the receivables turnover ratio over the past five years has been relatively steady, ranging from 66.12 to 75.12.
A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly, which is generally seen as a positive sign of efficiency in managing its working capital. Conversely, a lower ratio may suggest that the company is taking longer to collect payments from customers.
Based on the data provided, Kroger's receivables turnover ratio has been consistently high, with the highest value of 75.12 achieved in January 2022. This indicates that Kroger has been efficient in collecting payments from its customers over the years, which is a positive indicator of its strong financial management.
Overall, the trend in Kroger's receivables turnover ratio suggests that the company has been effectively managing its accounts receivable and promptly converting them into cash, reflecting a healthy liquidity position.
Peer comparison
Feb 3, 2024