Kroger Company (KR)

Based on the provided data, Kroger Company's liquidity ratios have shown some fluctuations over the years.

1. Current Ratio: The current ratio measures Kroger's ability to cover its short-term obligations with its current assets. The trend shows an increase from 0.74 in January 2023 to 0.96 in January 2025. This indicates an improvement in Kroger's short-term liquidity position over the period.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Kroger's quick ratio has also shown an increasing trend, from 0.19 in January 2023 to 0.33 in January 2025. This suggests an enhancement in its ability to meet short-term obligations without relying on inventory.

3. Cash Ratio: The cash ratio focuses solely on Kroger's ability to cover its current liabilities with its cash and cash equivalents. The data indicates fluctuations in this ratio, with a notable increase from 0.06 in January 2023 to 0.33 in January 2025. This implies an improvement in Kroger's immediate liquidity position.

In summary, Kroger Company's liquidity ratios have generally strengthened over the years, signifying an enhanced ability to meet its short-term obligations. However, it is essential to continue monitoring these ratios to ensure sustained liquidity and financial stability.

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Additional liquidity measure

The cash conversion cycle of Kroger Company exhibits fluctuations over the years based on the provided data. On January 28, 2023, the cash conversion cycle stood at 6.89 days, reflecting a relatively efficient turnaround of cash. However, by January 31, 2023, this metric increased to 23.69 days, indicating a longer period for converting invested resources back into cash.

Subsequently, on January 31, 2024, despite a slight improvement to 21.65 days, the cash conversion cycle remained relatively high compared to the initial period. Notably, by February 3, 2024, the cycle experienced a significant decline to -4.93 days, signaling a potentially anomalous or unique situation where cash was converted before being invested.

As of January 31, 2025, the cash conversion cycle increased again to 22.59 days, suggesting a return to a longer conversion timeline. Overall, fluctuations in the cash conversion cycle may indicate changes in Kroger Company's operating efficiency and effectiveness in managing its working capital.