Kroger Company (KR)
Debt-to-assets ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,162,000 | 10,139,000 | 11,294,000 | 11,566,000 | 11,330,000 |
| Total assets | US$ in thousands | 50,505,000 | 49,623,000 | 49,086,000 | 48,662,000 | 45,256,000 |
| Debt-to-assets ratio | 0.20 | 0.20 | 0.23 | 0.24 | 0.25 |
February 3, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $10,162,000K ÷ $50,505,000K
= 0.20
The debt-to-assets ratio of Kroger Company has shown a relatively stable trend over the past five years. The ratio has ranged between 0.20 to 0.25 during this period, indicating that the company finances a moderate portion of its assets with debt.
A lower debt-to-assets ratio suggests that Kroger relies more on equity financing rather than debt, which can indicate a stronger financial position and lower financial risk. The consistent ratio around 0.20 to 0.25 demonstrates that Kroger has maintained a balanced approach to capital structure management.
Overall, the steady debt-to-assets ratio of Kroger Company reflects a prudent financial strategy in managing its capital structure by maintaining an optimal level of debt to support operational growth while minimizing financial risks.
Peer comparison
Feb 3, 2024