Kroger Company (KR)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,272,000 | 3,432,000 | 2,611,000 | 3,911,000 | 2,731,000 |
| Interest expense | US$ in thousands | 441,000 | 535,000 | 571,000 | 544,000 | 603,000 |
| Interest coverage | 7.42 | 6.41 | 4.57 | 7.19 | 4.53 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,272,000K ÷ $441,000K
= 7.42
The interest coverage ratio for Kroger Company has shown fluctuations over the past five fiscal years. In the most recent fiscal year ending on February 3, 2024, the interest coverage ratio stood at 7.42, indicating that Kroger generated 7.42 times more operating income than the interest expenses incurred during that period. This represents an improvement from the previous year, where the ratio was 6.41.
Looking back further, in January 2022, the interest coverage ratio was 4.57, showing a lower ability to cover interest expenses compared to the more recent years. However, there was a significant improvement in fiscal year 2021, with an interest coverage ratio of 7.19, and a similar pattern was observed in February 2020 with a ratio of 4.53.
Overall, the trend in Kroger's interest coverage ratio indicates a relatively strong ability to cover interest expenses in recent years, with the ratio consistently above 4. This suggests that Kroger has been generating sufficient operating income to comfortably meet its interest obligations, which is a positive indicator of the company's financial health.
Peer comparison
Feb 3, 2024