Kroger Company (KR)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.70% | 21.16% | 20.15% | 21.43% | 20.21% |
| Operating profit margin | 2.62% | 2.07% | 2.06% | 2.78% | 2.79% |
| Pretax margin | 2.27% | 1.89% | 1.89% | 1.96% | 1.96% |
| Net profit margin | 1.81% | 1.45% | 1.44% | 1.51% | 1.52% |
Kroger Company's gross profit margin has fluctuated over the years, starting at 20.21% in January 28, 2023, peaking at 22.70% in January 31, 2025. This indicates the company's ability to generate revenue after accounting for the cost of goods sold.
The operating profit margin has remained relatively stable, ranging between 2.06% and 2.78% over the same period. This shows Kroger's efficiency in managing its operating expenses and indicates the company's profitability from core business operations.
The pretax margin has shown a slight increase from 1.89% in January 31, 2024, to 2.27% in January 31, 2025. This demonstrates Kroger's ability to control its pre-tax expenses and generate profits before accounting for taxes.
Regarding net profit margin, Kroger Company has seen a gradual increase from 1.44% in January 31, 2024, to 1.81% in January 31, 2025. The positive trend in net profit margin reflects the company's effective management of its overall expenses and ability to capitalize on revenue generation after all costs are deducted.
Overall, the profitability ratios of Kroger show a mixed performance, with improvements in net profit margin and pretax margin, indicating the company's efforts to enhance profitability and operational efficiency over the years.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.32% | 6.13% | 6.13% | 8.33% | 8.31% |
| Return on assets (ROA) | 5.06% | 4.28% | 4.28% | 4.53% | 4.52% |
| Return on total capital | 53.07% | 15.03% | 28.28% | 34.41% | 17.01% |
| Return on equity (ROE) | 32.18% | 18.63% | 18.63% | 22.41% | 22.35% |
Kroger Company's profitability ratios show varying performance over the period analyzed.
1. Operating return on assets (Operating ROA) remained relatively stable, starting at 8.31% in January 28, 2023, and slightly increasing to 8.33% by January 31, 2023. However, there was a notable decline to 6.13% by January 31, 2024, which remained consistent through February 3, 2024, before rebounding to 7.32% by January 31, 2025. This indicates a fluctuation in the company's operational efficiency in generating profits from its assets.
2. Return on assets (ROA) followed a similar trend, starting at 4.52% in January 28, 2023, and slightly increasing to 4.53% by January 31, 2023. However, there was a dip to 4.28% by January 31, 2024, which remained consistent through February 3, 2024, before improving to 5.06% by January 31, 2025. This ratio reflects the overall effectiveness of Kroger in generating profits from its total assets.
3. Return on total capital fluctuated significantly, with a high of 34.41% in January 31, 2023, dropping to 15.03% by February 3, 2024, before significantly increasing to 53.07% by January 31, 2025. This ratio shows the company's ability to generate returns for both equity and debt holders on the total capital employed in its operations.
4. Return on equity (ROE) also experienced fluctuations, starting at 22.35% in January 28, 2023, and slightly increasing to 22.41% by January 31, 2023. There was a decline to 18.63% by January 31, 2024, remaining consistent until February 3, 2024, before rising to 32.18% by January 31, 2025. ROE illustrates the company's ability to generate profits for its shareholders based on the equity invested.
Overall, while there were fluctuations in profitability ratios, Kroger Company demonstrated the ability to generate profits from its assets, total capital, and equity over the period under review, though with varying levels of efficiency and effectiveness. It is essential for the company to monitor and manage these ratios to ensure sustained profitability and shareholder value.