Kroger Company (KR)
Profitability ratios
Return on sales
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Nov 4, 2023 | Oct 31, 2023 | Aug 12, 2023 | Jul 31, 2023 | May 20, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 28, 2023 | Nov 5, 2022 | Oct 31, 2022 | Aug 13, 2022 | Jul 31, 2022 | May 21, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 22.04% | 21.05% | 20.58% | 20.42% | 20.86% | 21.54% | 21.81% | 21.89% | 21.99% | 22.02% | 17.18% | 16.60% | 15.91% | 15.62% | 20.52% | 20.63% | 20.19% | 20.51% | 20.34% | 20.19% |
| Operating profit margin | 2.74% | 2.87% | 3.18% | 3.25% | 3.12% | 1.98% | 0.64% | 0.97% | 1.26% | 2.07% | 2.88% | 2.66% | 2.42% | 2.52% | 2.62% | 2.89% | 3.12% | 3.16% | 3.19% | 3.03% |
| Pretax margin | 2.27% | 2.36% | 2.39% | 2.55% | 2.51% | 1.76% | 0.96% | 1.16% | 1.33% | 1.84% | 2.34% | 2.03% | 1.67% | 1.90% | 2.13% | 2.18% | 2.21% | 2.09% | 1.97% | 1.97% |
| Net profit margin | 1.81% | 1.85% | 1.88% | 2.00% | 1.95% | 1.33% | 0.69% | 0.85% | 0.99% | 1.38% | 1.77% | 1.52% | 1.23% | 1.44% | 1.64% | 1.70% | 1.76% | 1.67% | 1.59% | 1.60% |
Based on the provided data, let's analyze Kroger Company's profitability ratios:
1. Gross Profit Margin:
- Gross profit margin shows the percentage of revenue that exceeds the cost of goods sold.
- The gross profit margin for Kroger has fluctuated over the periods, ranging from a low of 15.62% in January 2023 to a high of 22.04% in January 2025.
- Overall, the trend in the gross profit margin has shown improvement over time, with an increasing trend from 2023 to 2025.
2. Operating Profit Margin:
- Operating profit margin indicates the percentage of revenue that remains after deducting operating expenses.
- The operating profit margin for Kroger also fluctuates, with a low of 0.64% in November 2023 and a high of 3.25% in April 2024.
- The trend in the operating profit margin has been inconsistent, showing periods of both decrease and increase.
3. Pretax Margin:
- Pretax margin reflects the percentage of revenue that remains after deducting all expenses except taxes.
- Kroger's pretax margin has varied over time, reaching a high of 2.55% in April 2024 and a low of 0.96% in November 2023.
- The pretax margin has generally shown some improvement in recent periods but still demonstrates fluctuations.
4. Net Profit Margin:
- Net profit margin indicates the percentage of revenue that remains after deducting all expenses, including taxes.
- The net profit margin for Kroger has been volatile, ranging from a low of 0.69% in November 2023 to a high of 2.00% in April 2024.
- Despite the fluctuations, there seems to be an overall improvement in the net profit margin over the analyzed periods.
In conclusion, Kroger's profitability ratios show mixed performance with fluctuations in margins over time. The company has displayed efforts to improve its profitability, as seen in the increasing gross profit margin and overall upward trend in net profit margin. However, the operating profit margin and pretax margin have shown inconsistency, indicating potential challenges in managing operating expenses and other costs.
Return on investment
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Nov 4, 2023 | Oct 31, 2023 | Aug 12, 2023 | Jul 31, 2023 | May 20, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 28, 2023 | Nov 5, 2022 | Oct 31, 2022 | Aug 13, 2022 | Jul 31, 2022 | May 21, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.65% | 6.90% | 9.48% | 9.65% | 8.75% | 5.44% | 1.70% | 2.79% | 3.95% | 6.55% | 9.15% | 7.90% | 6.72% | 6.98% | 7.20% | 8.53% | 10.12% | 10.15% | 10.08% | 8.78% |
| Return on assets (ROA) | 5.06% | 4.43% | 5.61% | 5.94% | 5.47% | 3.66% | 1.83% | 2.45% | 3.12% | 4.37% | 5.63% | 4.51% | 3.42% | 3.99% | 4.50% | 5.04% | 5.71% | 5.37% | 5.01% | 4.64% |
| Return on total capital | 48.69% | 30.53% | 32.63% | 34.85% | 18.18% | 24.30% | 7.89% | 19.13% | 12.50% | 32.42% | 20.32% | 32.33% | 27.50% | 15.33% | 16.62% | 37.98% | 20.25% | 40.35% | 17.74% | 35.90% |
| Return on equity (ROE) | 32.18% | 21.45% | 23.05% | 24.68% | 23.80% | 15.91% | 8.31% | 11.15% | 14.72% | 20.70% | 25.91% | 20.79% | 16.91% | 19.70% | 22.61% | 25.35% | 28.82% | 27.11% | 26.13% | 24.21% |
Based on the provided data, let's analyze the profitability ratios of Kroger Company:
1. Operating Return on Assets (Operating ROA): This ratio measures the company's efficiency in generating profit from its assets used in operations. Kroger's Operating ROA fluctuated over the analyzed period, ranging from a high of 10.15% in July 2022 to a low of 1.70% in November 2023. The average Operating ROA during this period was 7.17%, indicating that Kroger generated, on average, approximately $0.07 of operating income for every dollar of assets employed.
2. Return on Assets (ROA): ROA reflects the overall profitability of the company, including non-operating items. Kroger's ROA also showed variability, with the highest value of 5.94% in April 2024 and the lowest value of 1.83% in November 2023. The average ROA for the period was 4.59%, indicating that Kroger generated, on average, about $0.05 of net income for every dollar of total assets.
3. Return on Total Capital: This ratio indicates the return generated from all sources of capital, including debt and equity. Kroger's Return on Total Capital ranged from 48.69% in January 2025 to 7.89% in November 4, 2023. The average Return on Total Capital for the period was 25.31%, suggesting that Kroger effectively utilized its capital to generate returns for its providers.
4. Return on Equity (ROE): ROE measures the return generated on shareholders' equity. Kroger's ROE fluctuated over the period, reaching a peak of 32.18% in January 2025 and a low of 8.31% in November 4, 2023. The average ROE for the period was 20.98%, signifying that Kroger generated approximately $0.21 of net income for every dollar of shareholders' equity invested.
In summary, the profitability ratios of Kroger Company exhibited variability over the analyzed period. The company's performance in generating profits from its assets and capital fluctuated, impacting its overall profitability and returns to shareholders. Further analysis and comparison with industry benchmarks can provide deeper insights into Kroger's financial performance.