Kroger Company (KR)
Cash ratio
| Feb 3, 2024 | Nov 4, 2023 | Aug 12, 2023 | May 20, 2023 | Jan 28, 2023 | Nov 5, 2022 | Aug 13, 2022 | May 21, 2022 | Jan 29, 2022 | Nov 6, 2021 | Aug 14, 2021 | May 22, 2021 | Jan 30, 2021 | Nov 7, 2020 | May 23, 2020 | Feb 1, 2020 | Nov 9, 2019 | Aug 17, 2019 | May 25, 2019 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,883,000 | 1,725,000 | 2,420,000 | 2,632,000 | 1,015,000 | 916,000 | 1,102,000 | 1,382,000 | 1,821,000 | 2,288,000 | 2,225,000 | 2,309,000 | 1,687,000 | 2,180,000 | 2,726,000 | 399,000 | 545,000 | 629,000 | 409,000 | 429,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | 1,110,000 | — | — | — | 1,011,000 | — | — | 1,142,000 | — | — | — | 1,066,000 | — |
| Total current liabilities | US$ in thousands | 16,058,000 | 16,785,000 | 16,537,000 | 17,130,000 | 17,238,000 | 17,738,000 | 16,566,000 | 16,238,000 | 16,323,000 | 16,798,000 | 15,603,000 | 15,210,000 | 15,366,000 | 15,517,000 | 14,671,000 | 14,243,000 | 14,118,000 | 13,350,000 | 13,575,000 | 14,274,000 |
| Cash ratio | 0.12 | 0.10 | 0.15 | 0.15 | 0.06 | 0.05 | 0.07 | 0.15 | 0.11 | 0.14 | 0.14 | 0.22 | 0.11 | 0.14 | 0.26 | 0.03 | 0.04 | 0.05 | 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 fluctuated over the past few years, ranging from a low of 0.03 to a high of 0.26. This ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates better liquidity and the ability to meet its short-term obligations.
Kroger's cash ratio has generally been above 0.10, which suggests that the company has a sufficient level of cash to cover its short-term liabilities. The ratio peaked at 0.26 in May 2020, indicating a strong liquidity position at that time. However, the ratio dropped to 0.03 in February 2020, signaling a potential liquidity strain.
Overall, fluctuations in the cash ratio could be attributed to different factors such as changes in cash management practices, short-term investment decisions, or variations in operating performance. It is essential for Kroger to maintain a healthy cash ratio to ensure it can meet its financial obligations and withstand unexpected financial challenges.
Peer comparison
Feb 3, 2024