The Kroger Co (The Kroger Co) Interest Coverage

: 12.00 (As of Jan. 2024)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Kroger Co's Operating Income for the three months ended in Jan. 2024 was $1,200 Mil. The Kroger Co's Interest Expense for the three months ended in Jan. 2024 was $-100 Mil. The Kroger Co's interest coverage for the quarter that ended in Jan. 2024 was 12.00. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The Kroger Co's Interest Coverage or its related term are showing as below:

KR' s Interest Coverage Range Over the Past 10 Years
Min: 3.47 Med: 6.23 Max: 7.79
Current: 7.11

KR's Interest Coverage is ranked worse than
54.9% of 255 companies
in the Retail - Defensive industry
Industry Median: 9.26 vs KR: 7.11

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Kroger Co Interest Coverage Historical Data

The historical data trend for The Kroger Co's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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The Kroger Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

3.73

5.16

6.03

7.79

7.09

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
Interest Coverage																7.32	9.67	-	9.78	12.00

Competitive Comparison

For the Grocery Stores subindustry, The Kroger Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Kroger Co's Interest Coverage falls into.

The Kroger Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Kroger Co's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, The Kroger Co's Interest Expense was $-441 Mil. Its Operating Income was $3,126 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,379 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	3126	/	-441
	=	7.09

The Kroger Co's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, The Kroger Co's Interest Expense was $-100 Mil. Its Operating Income was $1,200 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,379 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	1200	/	-100
	=	12.00

The higher the ratio, the stronger the company's Financial Strength is.

The Kroger Co (NYSE:KR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

The Kroger Co Interest Coverage Related Terms

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The Kroger Co (The Kroger Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » The Kroger Co (NYSE:KR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

KR:Mexico 1KR:Italy KOG:Germany KOG:Germany KOG:Germany K1RC34:Brazil KR:Austria

Address

1014 Vine Street, Cincinnati, OH, USA, 45202

Website

https://www.thekrogerco.com

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.

Executives

Carin L Fike	officer: Vice President and Treasurer	1014 VINE STREET, CINCINNATI OH 45202
Timothy A Massa	officer: Group Vice President	1014 VINE STREET, CINCINNATI OH 45202
Christine S Wheatley	officer: Group Vice President	1014 VINE STREET, CINCINNATI OH 45202
Kenneth C Kimball	officer: Senior Vice President	C/O THE KROGER CO., 1014 VINE STREET, CINCINNATI OH 45202
Stuart Aitken	officer: Group Vice President	C/O JOURNAL MEDIA GROUP, INC., 333 WEST STATE STREET, MILWAUKEE WI 53203
Yael Cosset	officer: Group Vice President	1014 VINE STREET, CINCINNATI OH 45202
Gary Millerchip	officer: Senior Vice President and CFO	1014 VINE STREET, CINCINNATI OH 45202
Todd A Foley	officer: Vice President and Treasurer	1014 VINE STREET, CINCINNATI OH 45202
Valerie L. Jabbar	officer: Senior Vice President	THE KROGER CO., 1014 VINE STREET, CINCINNATI OH 45202
Mary Ellen Adcock	officer: Group Vice President	1014 VINE STREET, CINCINNATI OH 45202
Calvin J Kaufman	officer: Group Vice President	THE KROGER CO., 1014 VINE STREET, CINCINNATI OH 45202
Mark C Tuffin	officer: Senior Vice President	THE KROGER CO., 1014 VINE STREET, CINCINNATI OH 45202
Elaine L. Chao	director	C/O DOLE FOOD COMPANY, INC., ONE DOLE DRIVE, WESTLAKE VILLAGE CA 91362
Michael Joseph Donnelly	officer: Senior Vice President
Susan J Kropf	director	C/O AVON PRODUCTS INC, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105-0196