Kroger Company (KR)
Financial leverage ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,616,000 | 50,505,000 | 50,505,000 | 49,537,000 | 49,623,000 |
| Total stockholders’ equity | US$ in thousands | 8,281,000 | 11,615,000 | 11,615,000 | 10,014,000 | 10,042,000 |
| Financial leverage ratio | 6.35 | 4.35 | 4.35 | 4.95 | 4.94 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,616,000K ÷ $8,281,000K
= 6.35
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. Looking at the data provided for Kroger Company, we observe fluctuations in the financial leverage ratio over the period analyzed.
On January 28, 2023, the financial leverage ratio stood at 4.94, indicating that the company had $4.94 in debt for every $1 of equity. This ratio increased slightly to 4.95 by January 31, 2023, suggesting a marginal increase in the company's reliance on debt.
By January 31, 2024, and February 3, 2024, the financial leverage ratio remained constant at 4.35. This stability in the ratio may indicate a consistent debt structure and financial strategy during this period.
However, a notable increase was observed on January 31, 2025, with the financial leverage ratio rising substantially to 6.35. This significant increase could signal a higher level of indebtedness relative to equity, potentially reflecting a shift in the company's financing decisions.
In conclusion, the financial leverage ratio for Kroger Company has shown variability over the given period, with fluctuations indicating changes in the company's debt-to-equity structure and possibly its overall financial risk profile. It is important for stakeholders to monitor these trends to assess the company's financial health and risk management practices effectively.
Peer comparison
Jan 31, 2025