Kroger Company (KR)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 50,505,000 | 49,623,000 | 49,086,000 | 48,662,000 | 45,256,000 |
| Total stockholders’ equity | US$ in thousands | 11,615,000 | 10,042,000 | 9,452,000 | 9,576,000 | 8,602,000 |
| Financial leverage ratio | 4.35 | 4.94 | 5.19 | 5.08 | 5.26 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $50,505,000K ÷ $11,615,000K
= 4.35
The financial leverage ratio of Kroger Company has exhibited fluctuations over the past five years. As of February 3, 2024, the ratio stands at 4.35, showing a decrease from the previous year's ratio of 4.94. This indicates that Kroger has reduced its reliance on debt to finance its assets in the most recent year. However, when compared to the ratios from two and three years ago (5.19 and 5.08, respectively), the current ratio suggests a more efficient capital structure. It is worth noting that in February 2020, the ratio was at its highest point of 5.26, which implies that Kroger had a higher level of debt relative to equity at that time. Overall, the trend in the financial leverage ratio reveals the company's evolving approach to leveraging its capital for growth and operations.
Peer comparison
Feb 3, 2024