Kroger Company (KR)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.16% | 20.21% | 20.75% | 22.16% | 20.69% |
| Operating profit margin | 2.07% | 2.79% | 2.53% | 2.11% | 1.85% |
| Pretax margin | 1.89% | 1.96% | 1.49% | 2.55% | 1.75% |
| Net profit margin | 1.45% | 1.52% | 1.21% | 1.96% | 1.36% |
Based on the profitability ratios provided for Kroger Company over the past five years, we can observe various trends:
1. Gross Profit Margin: Kroger's gross profit margin has fluctuated over the years, ranging from 20.21% to 22.16%. The company's ability to generate profits from its core business operations has improved in the last fiscal year, with a gross profit margin of 21.16%.
2. Operating Profit Margin: Kroger's operating profit margin has also varied over the years, showing a downward trend from 2.79% to 2.07%. This suggests that the company's operating efficiency has slightly declined in the most recent fiscal year.
3. Pretax Margin: The pretax margin indicates the percentage of each dollar of revenue that translates into pre-tax profit. Kroger's pretax margin has been volatile, with the lowest figure recorded in the fiscal year 2022 at 1.49%. The ratio improved in the most recent fiscal year to 1.89%.
4. Net Profit Margin: The net profit margin represents the percentage of revenue that remains as net income after accounting for all expenses. Kroger's net profit margin has shown fluctuations, ranging from 1.21% to 1.96%. In the last fiscal year, the company achieved a net profit margin of 1.45%.
In summary, Kroger Company's profitability ratios have experienced variability over the past five years. While the gross profit margin has shown improvement recently, the operating profit margin has slightly declined. The pretax margin improved in the most recent fiscal year, but the net profit margin decreased compared to the prior year. Monitoring these ratios can provide insights into Kroger's profitability trends and help assess its overall financial performance.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.13% | 8.31% | 7.08% | 5.71% | 4.97% |
| Return on assets (ROA) | 4.28% | 4.52% | 3.37% | 5.31% | 3.67% |
| Return on total capital | 15.03% | 17.01% | 12.59% | 18.50% | 13.70% |
| Return on equity (ROE) | 18.63% | 22.35% | 17.51% | 26.99% | 19.29% |
Kroger Company's profitability ratios indicate a mixed performance over the past five years. The Operating ROA has shown a slight decrease from 8.31% in 2023 to 6.13% in 2024, suggesting a lower operating income generated per dollar of assets. However, the ROA fluctuated over the same period, with a peak at 5.31% in 2021 and a trough at 3.37% in 2022, indicating varying levels of profitability relative to total assets.
On the other hand, the Return on Total Capital has also shown fluctuations, with a drop from 17.01% in 2023 to 15.03% in 2024. This ratio indicates the overall efficiency of the company in generating returns for both debt and equity investors. Additionally, the ROE has declined from 22.35% in 2023 to 18.63% in 2024, showing a decrease in the profitability of the company based on shareholder equity.
Overall, the profitability ratios reflect a somewhat inconsistent performance for Kroger Company in recent years, suggesting the need for strategic adjustments to enhance profitability and optimize the utilization of assets and capital in the future.