Kroger Company (KR)

Debt-to-assets ratio

Feb 3, 2024 Nov 4, 2023 Aug 12, 2023 May 20, 2023 Jan 28, 2023 Nov 5, 2022 Aug 13, 2022 May 21, 2022 Jan 29, 2022 Nov 6, 2021 Aug 14, 2021 May 22, 2021 Jan 30, 2021 Nov 7, 2020 May 23, 2020 Feb 1, 2020 Nov 9, 2019 Aug 17, 2019 May 25, 2019 Feb 2, 2019
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 11,294,000 11,292,000 11,270,000 11,674,000 11,566,000 11,084,000 11,556,000 11,330,000 11,311,000 11,300,000 11,256,000 11,248,000
Total assets US$ in thousands 50,505,000 51,021,000 50,202,000 50,193,000 49,623,000 49,987,000 48,741,000 49,091,000 49,086,000 49,829,000 48,461,000 48,811,000 48,662,000 48,465,000 46,942,000 45,256,000 45,393,000 44,462,000 44,319,000 38,118,000
Debt-to-assets ratio 0.20 0.20 0.20 0.20 0.20 0.21 0.22 0.23 0.23 0.23 0.23 0.24 0.24 0.23 0.25 0.25 0.25 0.25 0.25 0.30

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 been relatively stable over the past few years, ranging between 0.20 and 0.30. This ratio indicates the proportion of the company's assets that are financed through debt. A lower ratio suggests that the company relies less on debt to finance its operations and investments, while a higher ratio may indicate greater financial leverage.

Kroger's debt-to-assets ratio has remained below 0.25 for most of the periods, signifying a conservative capital structure where a significant portion of assets are financed by equity. This could indicate a lower financial risk for the company as it has a lower reliance on debt financing.

It is worth noting the slight increase in the debt-to-assets ratio from 0.20 to 0.30 between February 2, 2019, and May 23, 2020. This increase may signal a shift in the company's financing strategy during that period, potentially taking on more debt to fund expansion or other strategic initiatives.

Overall, the consistent and relatively low debt-to-assets ratio of Kroger Company suggests a prudent approach to managing its capital structure, maintaining a balance between debt and equity financing to support its operations and growth opportunities.


Peer comparison

Feb 3, 2024

Company name
Symbol
Debt-to-assets ratio
Kroger Company
KR
0.20
Grocery Outlet Holding Corp
GO
0.10
Sprouts Farmers Market LLC
SFM
0.00