Kroger Company (KR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 11,615,000 | 10,042,000 | 9,452,000 | 9,576,000 | 8,602,000 |
| Debt-to-capital ratio | 0.47 | 0.50 | 0.54 | 0.55 | 0.57 |
February 3, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,162,000K ÷ ($10,162,000K + $11,615,000K)
= 0.47
The debt-to-capital ratio of Kroger Company has exhibited a declining trend over the past five years, decreasing from 0.57 in February 2020 to 0.47 in February 2024. This indicates that the company has reduced its reliance on debt financing in relation to its capital structure over the period. A lower debt-to-capital ratio can suggest improved financial stability and reduced risk of insolvency, as the company has a lower proportion of debt in its overall capital structure. It may also reflect effective management of debt levels and capital allocation by Kroger Company. However, it is important to consider the reasons behind this trend and the potential impact on the company's ability to fund its operations and growth initiatives.
Peer comparison
Feb 3, 2024