Kroger Company (KR)
Return on equity (ROE)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,665,000 | 2,164,000 | 2,164,000 | 2,244,000 | 2,244,000 |
| Total stockholders’ equity | US$ in thousands | 8,281,000 | 11,615,000 | 11,615,000 | 10,014,000 | 10,042,000 |
| ROE | 32.18% | 18.63% | 18.63% | 22.41% | 22.35% |
January 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,665,000K ÷ $8,281,000K
= 32.18%
To analyze Kroger Company's return on equity (ROE) over the specified periods, we first note the following ROE figures:
- January 28, 2023: 22.35%
- January 31, 2023: 22.41%
- January 31, 2024: 18.63%
- February 3, 2024: 18.63%
- January 31, 2025: 32.18%
The ROE measures the company's ability to generate profit from shareholders' equity. A higher ROE generally indicates that a company is using shareholders' funds more efficiently to generate profits.
In Kroger's case, we observe fluctuating ROE levels over the periods considered. The ROE was relatively stable around the low 20% range in early 2023. However, there was a decline in ROE to 18.63% in early 2024, which was sustained in subsequent periods.
The significant increase in ROE to 32.18% by January 31, 2025, suggests improved profitability relative to shareholder equity investment. This surge could be attributed to various factors such as improved operational efficiency, better cost management, or potentially higher revenue generation.
In conclusion, while Kroger's ROE exhibited fluctuations, the recent increase to 32.18% indicates a more efficient use of shareholder funds to generate profits, marking a positive trend in the company's performance. Further monitoring of financial results will be essential to assess the sustainability and implications of this improved ROE performance.
Peer comparison
Jan 31, 2025