Kroger Company (KR)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,032,000 | 3,938,000 | 4,084,000 | 4,328,000 | 3,958,000 | 2,822,000 | 1,684,000 | 2,141,000 | 2,597,000 | 3,438,000 | 4,276,000 | 3,518,000 | 2,762,000 | 3,093,000 | 3,427,000 | 3,771,000 | 4,116,000 | 3,897,000 | 3,671,000 | 3,379,000 |
| Interest expense (ttm) | US$ in thousands | 449,000 | 393,000 | 407,000 | 417,000 | 388,000 | 381,000 | 374,000 | 433,000 | 492,000 | 512,000 | 532,000 | 498,000 | 464,000 | 478,000 | 494,000 | 552,000 | 610,000 | 616,000 | 620,000 | 578,000 |
| Interest coverage | 8.98 | 10.02 | 10.03 | 10.38 | 10.20 | 7.41 | 4.50 | 4.94 | 5.28 | 6.71 | 8.04 | 7.06 | 5.95 | 6.47 | 6.94 | 6.83 | 6.75 | 6.33 | 5.92 | 5.85 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,032,000K ÷ $449,000K
= 8.98
The interest coverage ratio of Kroger Company has shown variability over the periods provided in the data. Initially, the interest coverage ratio was around 5.85 in April 2022, indicating that the company generated operating income 5.85 times more than its interest expenses. This ratio slightly improved over the next few months, reaching 6.94 in November 2022.
However, in early 2023, the interest coverage ratio fluctuated, dropping to 5.95 in January 2023 before rising to 8.04 in May 2023. The ratio then declined to 4.50 in November 2023, reflecting a potential strain on the company's ability to cover interest payments with its operating income.
Subsequently, there was a notable improvement in the interest coverage ratio, peaking at 10.38 in April 2024 and maintaining high levels above 10 in subsequent periods until October 2024. This signifies a strong ability to meet interest obligations with operating earnings.
In the most recent data available, the interest coverage ratio stood at 8.98 in January 2025, indicating that Kroger Company is generating operating income comfortably to cover its interest expenses. Overall, the trend in the interest coverage ratio showcases fluctuations with periods of strong coverage and temporary weaknesses, but it seems to have stabilized at healthier levels in recent periods.
Peer comparison
Jan 31, 2025