Kroger Company (KR)
Solvency ratios
| Feb 3, 2024 | Nov 4, 2023 | Aug 12, 2023 | May 20, 2023 | Jan 28, 2023 | Nov 5, 2022 | Aug 13, 2022 | May 21, 2022 | Jan 29, 2022 | Nov 6, 2021 | Aug 14, 2021 | May 22, 2021 | Jan 30, 2021 | Nov 7, 2020 | May 23, 2020 | Feb 1, 2020 | Nov 9, 2019 | Aug 17, 2019 | May 25, 2019 | Feb 2, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.21 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.23 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.30 |
| Debt-to-capital ratio | 0.47 | 0.48 | 0.49 | 0.48 | 0.50 | 0.52 | 0.52 | 0.55 | 0.54 | 0.54 | 0.55 | 0.56 | 0.55 | 0.52 | 0.55 | 0.57 | 0.56 | 0.56 | 0.57 | 0.59 |
| Debt-to-equity ratio | 0.87 | 0.90 | 0.95 | 0.93 | 1.01 | 1.07 | 1.11 | 1.20 | 1.19 | 1.19 | 1.21 | 1.26 | 1.21 | 1.10 | 1.24 | 1.32 | 1.27 | 1.30 | 1.31 | 1.43 |
| Financial leverage ratio | 4.35 | 4.55 | 4.72 | 4.60 | 4.94 | 5.02 | 5.05 | 5.22 | 5.19 | 5.23 | 5.22 | 5.28 | 5.08 | 4.81 | 5.02 | 5.26 | 5.09 | 5.10 | 5.16 | 4.83 |
Kroger Company's solvency ratios, which measure the company's ability to meet its long-term financial obligations, have been relatively stable over the past few periods. The debt-to-assets ratio has consistently remained around 0.20 to 0.25, indicating that approximately 20-25% of Kroger's assets are financed through debt.
The debt-to-capital ratio, reflecting the proportion of debt in the company's capital structure, has also shown consistency ranging from 0.47 to 0.59. This suggests that Kroger relies on debt for approximately 47-59% of its total capital.
The debt-to-equity ratio, showing the proportion of debt relative to equity, has demonstrated a slightly increasing trend from 0.87 to 1.43. This indicates that Kroger's level of debt in relation to equity has been gradually rising, reaching 1.43 in the most recent period.
The financial leverage ratio, which provides an overall view of a company's debt levels, has fluctuated between 4.35 to 5.28. This suggests that Kroger's financial leverage has been varying, but generally staying within a range indicating moderate levels of debt compared to equity.
Overall, while Kroger's solvency ratios have remained relatively stable, the increasing debt-to-equity ratio may signal a heightened level of financial risk that investors and stakeholders should monitor closely.
Coverage ratios
| Feb 3, 2024 | Nov 4, 2023 | Aug 12, 2023 | May 20, 2023 | Jan 28, 2023 | Nov 5, 2022 | Aug 13, 2022 | May 21, 2022 | Jan 29, 2022 | Nov 6, 2021 | Aug 14, 2021 | May 22, 2021 | Jan 30, 2021 | Nov 7, 2020 | May 23, 2020 | Feb 1, 2020 | Nov 9, 2019 | Aug 17, 2019 | May 25, 2019 | Feb 2, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.43 | 6.57 | 5.60 | 7.51 | 6.40 | 6.37 | 6.28 | 5.59 | 4.58 | 3.24 | 3.78 | 5.33 | 5.93 | 6.44 | 5.67 | 4.52 | 4.39 | 4.47 | 4.79 | 7.47 |
To analyze Kroger Company's interest coverage ratio, we can look at the historical trend of the ratio over the past several reporting periods. The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.
- The interest coverage ratio for Kroger Company has shown fluctuations over the periods provided in the table.
- In general, a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating income.
- From the data, we observe that the interest coverage ratio ranges from a low of 3.24 to a high of 7.51.
- The ratio peaked at 7.51 on May 20, 2023, suggesting strong operating profits relative to interest expenses.
- On the other hand, the lowest interest coverage ratio of 3.24 was reported on Nov 6, 2021, indicating a lower level of earnings available to cover interest payments.
- The trend shows some variability in the interest coverage ratio, which may be influenced by changes in operating performance or interest obligations.
- It is crucial for investors and stakeholders to monitor this ratio over time to assess the company's ability to meet its interest payments and manage its debt effectively.