Kroger Company (KR)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,097,000 | 2,729,000 | 2,658,000 | 4,091,000 | 4,126,000 | 4,265,000 | 4,292,000 | 4,177,000 | 3,477,000 | 2,354,000 | 2,278,000 | 2,765,000 | 2,497,000 | 2,909,000 | 2,676,000 | 2,251,000 | 2,105,000 | 2,498,000 | 2,488,000 | 2,616,000 |
| Total assets | US$ in thousands | 50,505,000 | 51,021,000 | 50,202,000 | 50,193,000 | 49,623,000 | 49,987,000 | 48,741,000 | 49,091,000 | 49,086,000 | 49,829,000 | 48,461,000 | 48,811,000 | 48,662,000 | 48,465,000 | 46,942,000 | 45,256,000 | 45,393,000 | 44,462,000 | 44,319,000 | 38,118,000 |
| Operating ROA | 6.13% | 5.35% | 5.29% | 8.15% | 8.31% | 8.53% | 8.81% | 8.51% | 7.08% | 4.72% | 4.70% | 5.66% | 5.13% | 6.00% | 5.70% | 4.97% | 4.64% | 5.62% | 5.61% | 6.86% |
February 3, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,097,000K ÷ $50,505,000K
= 6.13%
Operating return on assets (ROA) is a key financial metric that provides insights into how efficiently a company generates profits from its assets to support its operations. Analyzing Kroger Company's operating ROA over the past two years reveals fluctuations in the company's profitability and asset utilization.
From February 2019 to February 2024, Kroger's operating ROA has varied between 4.64% and 8.81%. The highest operating ROA was recorded in August 2022 at 8.81%, indicating that for every dollar of assets employed, the company generated a return of 8.81 cents from its operations. Conversely, the lowest operating ROA was noted in November 2019 at 4.64%, suggesting a relatively lower efficiency in utilizing assets to generate operating profits.
Overall, Kroger's operating ROA trend shows some volatility, with fluctuations evident in the quarterly figures. For instance, the company experienced a significant drop in operating ROA from November 2021 to February 2022, potentially indicating challenges in asset utilization or profitability during that period. In contrast, there was a notable improvement in operating ROA from August 2022 to February 2024, suggesting enhanced operational efficiency and profitability.
It is essential for investors and stakeholders to closely monitor Kroger's operating ROA to assess the company's ability to generate profits from its assets and sustain its operations effectively. Further analysis of factors influencing these fluctuations, such as changes in sales, expenses, asset base, or operational efficiencies, can provide deeper insights into the company's financial performance and prospects.
Peer comparison
Feb 3, 2024