Kroger Company (KR)
Quick ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,959,000 | 1,883,000 | 1,883,000 | 828,000 | 1,015,000 |
| Short-term investments | US$ in thousands | 1,312,000 | — | 1,215,000 | 1,227,000 | — |
| Receivables | US$ in thousands | — | 2,136,000 | — | — | 2,234,000 |
| Total current liabilities | US$ in thousands | 15,859,000 | 16,058,000 | 16,058,000 | 16,649,000 | 17,238,000 |
| Quick ratio | 0.33 | 0.25 | 0.19 | 0.12 | 0.19 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,959,000K
+ $1,312,000K
+ $—K)
÷ $15,859,000K
= 0.33
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at Kroger Company's quick ratio over the past five years, we can observe fluctuations in this liquidity metric.
As of January 28, 2023, the quick ratio was 0.19, indicating that for every dollar of current liabilities, Kroger had $0.19 of liquid assets to cover those obligations. This ratio improved slightly by January 31, 2024, to 0.19, but then dropped significantly to 0.12 by January 31, 2023. This dip may suggest potential liquidity concerns or challenges in meeting short-term obligations.
However, there was a notable recovery in the quick ratio by February 3, 2024, when it increased to 0.25, signaling an improvement in the company's ability to cover its current liabilities with liquid assets. By January 31, 2025, the quick ratio further strengthened to 0.33, indicating a healthier liquidity position compared to the previous years.
Overall, while Kroger Company experienced fluctuations in its quick ratio over the five-year period, the upward trend in recent years suggests an enhanced ability to meet short-term obligations with liquid assets. It would be prudent for stakeholders to continue monitoring this ratio to assess Kroger's ongoing liquidity management.
Peer comparison
Jan 31, 2025