Kroger Company (KR)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,272,000 | 3,432,000 | 2,611,000 | 3,911,000 | 2,731,000 |
| Long-term debt | US$ in thousands | 10,162,000 | 10,139,000 | 11,294,000 | 11,566,000 | 11,330,000 |
| Total stockholders’ equity | US$ in thousands | 11,615,000 | 10,042,000 | 9,452,000 | 9,576,000 | 8,602,000 |
| Return on total capital | 15.03% | 17.01% | 12.59% | 18.50% | 13.70% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,272,000K ÷ ($10,162,000K + $11,615,000K)
= 15.03%
Kroger Company's return on total capital has fluctuated over the past five years. In FY2024, the return on total capital was 15.03%, representing a slight decrease from the previous year's 17.01%. Despite the decline, the return on total capital remains above 15%, indicating that Kroger is effectively generating returns from its total capital investments.
Comparing FY2024 to FY2022, there was an increase in the return on total capital from 12.59% to 15.03%, suggesting improved efficiency in utilizing the company's capital resources to generate profits.
However, FY2023 and FY2021 witnessed higher returns on total capital at 17.01% and 18.50%, respectively. This indicates that Kroger was more effective in generating returns from its total capital investments in those years compared to FY2024.
Overall, Kroger's return on total capital has shown variability in recent years, but it remains relatively strong, demonstrating the company's ability to effectively deploy capital to generate profits, albeit with some fluctuations.
Peer comparison
Feb 3, 2024