Kroger Company (KR)

The solvency ratios of Kroger Company reflect a strong financial position with consistently low levels of indebtedness. The Debt-to-assets ratio, which indicates the proportion of the company's assets financed by debt, shows a downward trend over the years from 0.20 in January 2023 to 0.00 by January 31, 2025, suggesting a reduction in reliance on debt to fund its operations.

Similarly, the Debt-to-capital ratio, which measures the extent of a company's capital structure that is financed through debt, also demonstrates a decreasing trend, falling from 0.50 in January 2023 to 0.00 by January 31, 2025. This indicates a shift towards a more equity-based capital structure and a decreasing level of financial risk associated with debt.

The Debt-to-equity ratio, reflecting the relationship between debt and equity in financing a company's assets, follows the same pattern of decline, decreasing from 1.01 in January 28, 2023, to 0.00 by January 31, 2025, highlighting the company's ability to rely more on equity financing than debt.

Lastly, the Financial leverage ratio, which compares the company's total assets to its equity, exhibits some variation but ends higher at 6.35 by January 31, 2025. This may indicate that Kroger has increased its reliance on equity to finance its assets, potentially enhancing financial stability and reducing the risk of insolvency.

Overall, the solvency ratios of Kroger Company suggest a prudent and well-managed financial strategy with a decreasing reliance on debt financing and a strengthening equity position, indicating a healthy financial outlook for the company.

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Coverage ratios

The interest coverage ratio for Kroger Company has been relatively stable over the past few years, ranging from 6.41 to 9.77. This indicates that the company's ability to meet its interest obligations is healthy, with a higher ratio suggesting better financial health. The increasing trend in the interest coverage ratio over the years reflects the company's improving ability to cover its interest expenses with its operating income. Overall, a consistently strong interest coverage ratio demonstrates Kroger's capacity to comfortably manage its debt obligations and indicates good financial stability.