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The Kroger Co (WBO:KR) Return-on-Tangible-Equity : 37.10% (As of Jan. 2025)


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What is The Kroger Co Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Kroger Co's annualized net income for the quarter that ended in Jan. 2025 was €2,450 Mil. The Kroger Co's average shareholder tangible equity for the quarter that ended in Jan. 2025 was €6,604 Mil. Therefore, The Kroger Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2025 was 37.10%.

The historical rank and industry rank for The Kroger Co's Return-on-Tangible-Equity or its related term are showing as below:

WBO:KR' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 30.26   Med: 47.14   Max: 96.48
Current: 33.48

During the past 13 years, The Kroger Co's highest Return-on-Tangible-Equity was 96.48%. The lowest was 30.26%. And the median was 47.14%.

WBO:KR's Return-on-Tangible-Equity is ranked better than
80.07% of 301 companies
in the Retail - Defensive industry
Industry Median: 12.38 vs WBO:KR: 33.48

The Kroger Co Return-on-Tangible-Equity Historical Data

The historical data trend for The Kroger Co's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

The Kroger Co Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.72 31.39 39.36 30.71 43.73

The Kroger Co Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Return-on-Tangible-Equity 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 38.14 45.74 20.76 26.90 37.10

Competitive Comparison of The Kroger Co's Return-on-Tangible-Equity

For the Grocery Stores subindustry, The Kroger Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where The Kroger Co's Return-on-Tangible-Equity falls into.


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The Kroger Co Return-on-Tangible-Equity Calculation

The Kroger Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jan. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jan. 2025 )  (A: Jan. 2024 )(A: Jan. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jan. 2025 )  (A: Jan. 2024 )(A: Jan. 2025 )
=2574.39/( (7160.4+4614.582 )/ 2 )
=2574.39/5887.491
=43.73 %

The Kroger Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jan. 2025 )  (Q: Oct. 2024 )(Q: Jan. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jan. 2025 )  (Q: Oct. 2024 )(Q: Jan. 2025 )
=2449.776/( (8593.398+4614.582)/ 2 )
=2449.776/6603.99
=37.10 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jan. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


The Kroger Co  (WBO:KR) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


The Kroger Co Return-on-Tangible-Equity Related Terms

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


The Kroger Co Business Description

Address
1014 Vine Street, Cincinnati, OH, USA, 45202
Kroger is one of the largest grocery retailers in the United States with more than 2,700 stores across a portfolio of over 20 supermarket banners. The company boasts an ingrained presence in US communities, citing that it is a top-two grocer in most of its major market areas. Over one fourth of Kroger's roughly $110 billion in nonperishable and fresh food sales (about 75% of revenue) stems from its private-label portfolio, of which the company manufactures about 30% of units via its own food production plants. The company also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.