Kroger Company (KR)
Interest coverage
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,395,000 | 3,272,000 | 3,285,000 | 3,446,000 | 3,432,000 |
| Interest expense | US$ in thousands | 450,000 | 441,000 | 441,000 | 535,000 | 535,000 |
| Interest coverage | 9.77 | 7.42 | 7.45 | 6.44 | 6.41 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,395,000K ÷ $450,000K
= 9.77
The interest coverage ratio for Kroger Company has shown a positive trend over the past years, indicating strong financial health and the company's ability to meet its interest payment obligations comfortably. The ratio increased from 6.41 in January 28, 2023, to 9.77 in January 31, 2025, showcasing an improving ability to cover interest expenses with operating income. This upward trend suggests that Kroger's earnings are more than sufficient to cover its interest expenses, reflecting a favorable financial position and reduced risk of default on debt obligations. Overall, the consistent improvement in the interest coverage ratio demonstrates sound financial management and profitability for Kroger Company.
Peer comparison
Jan 31, 2025