Kroger Company (KR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,032,000 | 3,938,000 | 4,084,000 | 4,328,000 | 3,958,000 | 2,822,000 | 1,684,000 | 2,141,000 | 2,597,000 | 3,438,000 | 4,276,000 | 3,518,000 | 2,762,000 | 3,093,000 | 3,427,000 | 3,771,000 | 4,116,000 | 3,897,000 | 3,671,000 | 3,379,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 10,162,000 | — | 10,143,000 | — | 10,143,000 | — | 10,139,000 | — | — | 10,139,000 | 10,664,000 | — | 10,673,000 | — | 11,279,000 | — |
| Total stockholders’ equity | US$ in thousands | 8,281,000 | 12,900,000 | 12,518,000 | 12,418,000 | 11,615,000 | 11,615,000 | 11,209,000 | 11,191,000 | 10,626,000 | 10,604,000 | 10,905,000 | 10,880,000 | 10,042,000 | 10,042,000 | 9,955,000 | 9,929,000 | 9,657,000 | 9,657,000 | 9,411,000 | 9,411,000 |
| 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% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,032,000K ÷ ($—K + $8,281,000K)
= 48.69%
Kroger Company's return on total capital has shown fluctuating trends over the reported periods. The ratio ranged from a low of 7.89% on November 4, 2023, to a high of 48.69% on January 31, 2025. Notably, there was a significant improvement in the return on total capital from the November 4, 2023, low to the January 31, 2025, high.
In general, the return on total capital for Kroger Company has been relatively strong, with several periods exceeding 30%, indicating efficient capital utilization and profitability. However, there were also instances where the return on total capital fell below 20%, suggesting challenges in generating adequate returns relative to the total capital employed.
Overall, Kroger Company's performance in terms of return on total capital exhibits variability, highlighting the importance of continuous monitoring and strategic management of capital allocation to enhance profitability and value creation for the company and its stakeholders.
Peer comparison
Jan 31, 2025