Kroger Company (KR)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,395,000 | 3,272,000 | 3,285,000 | 3,446,000 | 3,432,000 |
| Long-term debt | US$ in thousands | — | 10,162,000 | — | — | 10,139,000 |
| Total stockholders’ equity | US$ in thousands | 8,281,000 | 11,615,000 | 11,615,000 | 10,014,000 | 10,042,000 |
| Return on total capital | 53.07% | 15.03% | 28.28% | 34.41% | 17.01% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,395,000K ÷ ($—K + $8,281,000K)
= 53.07%
Kroger Company's return on total capital has displayed fluctuations over the last five periods. In the latest period, as of January 31, 2025, the return on total capital stood at an impressive 53.07%. This indicates that Kroger efficiently utilizes its total capital to generate profits. However, prior to that, there was a notable decrease in the return on total capital to 15.03% as of February 3, 2024, which could signify a period of lower profitability or less effective capital utilization. Overall, with fluctuations in returns, Kroger should continue monitoring and analyzing its capital allocation strategies to sustain or improve its financial performance over time.
Peer comparison
Jan 31, 2025