Kroger Company (KR)
Debt-to-equity 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-equity ratio | 0.87 | 1.01 | 1.19 | 1.21 | 1.32 |
February 3, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,162,000K ÷ $11,615,000K
= 0.87
The debt-to-equity ratio of Kroger Company has shown a decreasing trend over the past five years, declining from 1.32 in February 2020 to 0.87 in February 2024. This indicates that the company has been reducing its reliance on debt financing in relation to equity financing. A lower debt-to-equity ratio suggests a lower financial risk and a stronger financial position. The downward trend in the ratio may reflect efforts by Kroger to manage its debt levels more effectively and improve its financial health. Overall, the decreasing debt-to-equity ratio implies that Kroger has been gradually strengthening its balance sheet and reducing its financial leverage in recent years.
Peer comparison
Feb 3, 2024