Kroger Company (KR)
Cash ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,883,000 | 1,015,000 | 1,821,000 | 1,687,000 | 399,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 16,058,000 | 17,238,000 | 16,323,000 | 15,366,000 | 14,243,000 |
| Cash ratio | 0.12 | 0.06 | 0.11 | 0.11 | 0.03 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,883,000K
+ $—K)
÷ $16,058,000K
= 0.12
The cash ratio of Kroger Company has exhibited fluctuations over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with cash and cash equivalents. In the most recent fiscal year, as of February 3, 2024, Kroger's cash ratio stood at 0.12, showing an improvement compared to the previous year's 0.06. This suggests that Kroger had a higher proportion of cash to cover its short-term obligations in the latest fiscal period.
Comparing the current cash ratio to that of previous years, we observe variability. In the fiscal years 2022 and 2021, Kroger's cash ratio was 0.11, indicating a relatively consistent ability to meet short-term liabilities with cash on hand during those periods. However, in the fiscal year 2020, the cash ratio was lower at 0.03, signifying a potential liquidity challenge in that year.
Overall, the increasing trend in Kroger's cash ratio from 0.03 in 2020 to 0.12 in 2024 indicates an enhanced liquidity position, reflecting the company's potential to better manage its short-term financial obligations with available cash resources. However, it is essential to continue monitoring the cash ratio in subsequent periods to ensure sustained liquidity strength.
Peer comparison
Feb 3, 2024