Kroger Company (KR)
Financial leverage ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Nov 4, 2023 | Oct 31, 2023 | Aug 12, 2023 | Jul 31, 2023 | May 20, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 28, 2023 | Nov 5, 2022 | Oct 31, 2022 | Aug 13, 2022 | Jul 31, 2022 | May 21, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,616,000 | 62,418,000 | 51,443,000 | 51,579,000 | 50,505,000 | 50,505,000 | 51,021,000 | 51,021,000 | 50,202,000 | 50,202,000 | 50,193,000 | 50,193,000 | 49,623,000 | 49,623,000 | 49,987,000 | 49,987,000 | 48,741,000 | 48,741,000 | 49,091,000 | 49,091,000 |
| Total stockholders’ equity | US$ in thousands | 8,281,000 | 12,900,000 | 12,518,000 | 12,418,000 | 11,615,000 | 11,615,000 | 11,209,000 | 11,191,000 | 10,626,000 | 10,604,000 | 10,905,000 | 10,880,000 | 10,042,000 | 10,042,000 | 9,955,000 | 9,929,000 | 9,657,000 | 9,657,000 | 9,411,000 | 9,411,000 |
| Financial leverage ratio | 6.35 | 4.84 | 4.11 | 4.15 | 4.35 | 4.35 | 4.55 | 4.56 | 4.72 | 4.73 | 4.60 | 4.61 | 4.94 | 4.94 | 5.02 | 5.03 | 5.05 | 5.05 | 5.22 | 5.22 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,616,000K ÷ $8,281,000K
= 6.35
The financial leverage ratio of Kroger Company has shown a decreasing trend over the period mentioned in the data provided. The ratio decreased from 5.22 in April 2022 to 4.35 in February 2024, before rising to 6.35 in January 2025. This indicates that the company has been reducing its reliance on debt to finance its operations and growth.
A lower financial leverage ratio suggests that the company is using less debt compared to its equity, which can be seen as a positive indicator of financial stability and lower financial risk. However, the sudden increase in the ratio in January 2025 may indicate a shift in the company's capital structure towards higher debt levels, which could potentially increase financial risk in the future.
Overall, it is essential for Kroger Company to carefully manage its financial leverage ratio to maintain a healthy balance between debt and equity financing and ensure long-term financial sustainability.
Peer comparison
Jan 31, 2025