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The Kroger Co (The Kroger Co) Operating Margin % : 3.24% (As of Jan. 2024)


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What is The Kroger Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. The Kroger Co's Operating Income for the three months ended in Jan. 2024 was $1,200 Mil. The Kroger Co's Revenue for the three months ended in Jan. 2024 was $37,064 Mil. Therefore, The Kroger Co's Operating Margin % for the quarter that ended in Jan. 2024 was 3.24%.

Good Sign:

The Kroger Co operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for The Kroger Co's Operating Margin % or its related term are showing as below:

KR' s Operating Margin % Range Over the Past 10 Years
Min: 1.69   Med: 2.31   Max: 3.26
Current: 2.08


KR's Operating Margin % is ranked worse than
64.01% of 314 companies
in the Retail - Defensive industry
Industry Median: 3.25 vs KR: 2.08

The Kroger Co's 5-Year Average Operating Margin % Growth Rate was 3.90% per year.

The Kroger Co's Operating Income for the three months ended in Jan. 2024 was $1,200 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $3,127 Mil.


The Kroger Co Operating Margin % Historical Data

The historical data trend for The Kroger Co's Operating Margin % 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 Operating Margin % Chart

The Kroger Co Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.84 2.12 2.50 2.81 2.08

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
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.37 3.27 -1.39 2.71 3.24

Competitive Comparison of The Kroger Co's Operating Margin %

For the Grocery Stores subindustry, The Kroger Co's Operating Margin %, along with its competitors' market caps and Operating Margin % 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's Operating Margin % Distribution in the Retail - Defensive Industry

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

* The bar in red indicates where The Kroger Co's Operating Margin % falls into.



The Kroger Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

The Kroger Co's Operating Margin % for the fiscal year that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (A: Jan. 2024 ) / Revenue (A: Jan. 2024 )
=3126 / 150039
=2.08 %

The Kroger Co's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=1200 / 37064
=3.24 %

* 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) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


The Kroger Co Operating Margin % Related Terms

Thank you for viewing the detailed overview of The Kroger Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Kroger Co (The Kroger Co) Business Description

Address
1014 Vine Street, Cincinnati, OH, USA, 45202
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

The Kroger Co (The Kroger Co) Headlines

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