Kroger Company (KR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.20 | 0.00 | 0.20 | 0.00 | 0.20 | 0.00 | 0.20 | 0.00 | 0.00 | 0.20 | 0.21 | 0.00 | 0.22 | 0.00 | 0.23 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.47 | 0.00 | 0.48 | 0.00 | 0.49 | 0.00 | 0.48 | 0.00 | 0.00 | 0.50 | 0.52 | 0.00 | 0.52 | 0.00 | 0.55 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.87 | 0.00 | 0.90 | 0.00 | 0.95 | 0.00 | 0.93 | 0.00 | 0.00 | 1.01 | 1.07 | 0.00 | 1.11 | 0.00 | 1.20 | 0.00 |
| 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 |
The solvency ratios of Kroger Company indicate its ability to meet its financial obligations and manage its debts effectively.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. The decreasing trend in the debt-to-assets ratio from May 2022 to January 2025 indicates that Kroger has been lowering its reliance on debt to fund its assets, with the ratio consistently at 0.00 or close to it in recent periods. This indicates a strong financial position with minimal debt compared to its total assets.
2. Debt-to-capital ratio: This ratio shows the extent to which a company is using debt to finance its operations compared to its total capital. Kroger's debt-to-capital ratio has also been on a declining trend, reaching 0.00 in January 2025. This signifies that Kroger is relying less on debt capital and is using more equity in its capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the proportion of a company's financing that comes from debt and equity. The decreasing trend in Kroger's debt-to-equity ratio over the years reflects a reduction in its debt levels relative to equity, showing a stronger financial position and less financial risk.
4. Financial leverage ratio: This ratio indicates the extent to which a company is using debt to finance its assets. Kroger's financial leverage ratio has decreased steadily from 5.22 in April 2022 to 6.35 in January 2025. While an increase in this ratio may indicate higher financial risk, the decreasing trend in this case suggests that Kroger is managing its debt levels effectively and reducing financial risk over time.
Overall, the solvency ratios of Kroger Company demonstrate a healthy financial position with a decreasing reliance on debt financing and improving debt management, which bodes well for its stability and long-term financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio implies a stronger ability to cover interest payments from operating profits.
Analyzing Kroger Company's interest coverage ratio over the reported periods, we observe fluctuations in the ratio. The interest coverage ratio ranged from a low of 4.50 on November 4, 2023, to a high of 10.38 on April 30, 2024, indicating variability in the company's ability to cover its interest payments.
It is important to note that a declining interest coverage ratio could signal increased financial risk for the company, as it may indicate that the company's earnings are insufficient to cover its interest expenses. Conversely, an increasing interest coverage ratio reflects a healthier financial position for Kroger, as it demonstrates a stronger ability to meet its interest obligations.
Overall, monitoring Kroger Company's interest coverage ratio over time is essential for assessing its financial health and ability to service its debt obligations effectively.