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

Company name
Symbol
Operating ROA
Kroger Company
KR
6.13%
Grocery Outlet Holding Corp
GO
4.24%
Sprouts Farmers Market LLC
SFM
10.53%