The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. The Kroger Co's current ratio for the quarter that ended in Jan. 2024 was 0.81.
The Kroger Co has a current ratio of 0.81. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If The Kroger Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for The Kroger Co's Current Ratio or its related term are showing as below:
KR'
s Current Ratio Range Over the Past 10 Years
Min: 0.74 Med: 0.77 Max: 0.81
Current: 0.81
During the past 13 years, The Kroger Co's highest Current Ratio was 0.81. The lowest was 0.74. And the median was 0.77.
KR's Current Ratio is ranked worse than 80% of 315
companies
in the Retail - Defensive industry
Industry Median: 1.29
vs KR: 0.81
The Kroger Co Current Ratio Historical Data
The historical data trend for The Kroger Co's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
The Kroger Co Annual Data
Trend
Jan15
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Jan24
Current Ratio
0.76
0.81
0.75
0.74
0.81
The Kroger Co Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
Current Ratio
0.74
0.77
0.78
0.80
0.81
Competitive Comparison
For the Grocery Stores subindustry, The Kroger Co's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Kroger Co Current Ratio Distribution
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where The Kroger Co's Current Ratio falls into.
The Kroger Co Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
The Kroger Co's Current Ratio for the fiscal year that ended in Jan. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Kroger Co (NYSE:KR) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
The Kroger Co Current Ratio Related Terms
Thank you for viewing the detailed overview of The Kroger Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
The Kroger Co (The Kroger Co) Business Description
Kroger is the leading U.S. grocer, with 2,719 supermarkets operating under several banners throughout the country at the end of fiscal 2022. Around 83% of stores have pharmacies, while nearly 60% also sell fuel. The company also operates roughly 120 fine jewelry stores. Kroger features a leading private-label offering and manufactures around 30% of its own-brand units (and more than 40% of its grocery own-label assortment) itself in 33 food production plants nationwide. Kroger is a top-two grocer in most of its major markets (as of early 2021, according to company data). Virtually all of Kroger's sales come from the United States. Kroger has offered to acquire Albertsons in a $25 billion deal; if the transaction is approved by regulators, it should close in 2024.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
KR has been successfully added to your 