GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » The Kroger Co (MIL:1KR) » Definitions » ROE %

The Kroger Co (MIL:1KR) ROE % : 19.17% (As of Oct. 2024)


View and export this data going back to 2023. Start your Free Trial

What is The Kroger Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Kroger Co's annualized net income for the quarter that ended in Oct. 2024 was €2,269 Mil. The Kroger Co's average Total Stockholders Equity over the quarter that ended in Oct. 2024 was €11,686 Mil. Therefore, The Kroger Co's annualized ROE % for the quarter that ended in Oct. 2024 was 19.42%.

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

MIL:1KR' s ROE % Range Over the Past 10 Years
Min: 17.4   Med: 28.21   Max: 41.98
Current: 22.82

During the past 13 years, The Kroger Co's highest ROE % was 41.98%. The lowest was 17.40%. And the median was 28.21%.

MIL:1KR's ROE % is ranked better than
82.74% of 307 companies
in the Retail - Defensive industry
Industry Median: 10.09 vs MIL:1KR: 22.82

The Kroger Co ROE % Historical Data

The historical data trend for The Kroger Co's ROE % 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 ROE % Chart

The Kroger Co Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.39 27.19 18.04 23.56 19.90

The Kroger Co Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
ROE % 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 24.20 25.42 31.77 14.90 19.17

Competitive Comparison of The Kroger Co's ROE %

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

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

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



The Kroger Co ROE % Calculation

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

ROE %=Net Income (A: Jan. 2024 )/( (Total Stockholders Equity (A: Jan. 2023 )+Total Stockholders Equity (A: Jan. 2024 ))/ count )
=1986.552/( (9318.976+10649.718)/ 2 )
=1986.552/9984.347
=19.90 %

The Kroger Co's annualized ROE % for the quarter that ended in Oct. 2024 is calculated as

ROE %=Net Income (Q: Oct. 2024 )/( (Total Stockholders Equity (Q: Jul. 2024 )+Total Stockholders Equity (Q: Oct. 2024 ))/ count )
=2269.296/( (11536.064+11836.692)/ 2 )
=2269.296/11686.378
=19.42 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Oct. 2024) net income data. ROE % is displayed in the 30-year financial page.


The Kroger Co  (MIL:1KR) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Oct. 2024 )
=Net Income/Total Stockholders Equity
=2269.296/11686.378
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2269.296 / 123504.048)*(123504.048 / 52365.085)*(52365.085 / 11686.378)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.84 %*2.3585*4.4809
=ROA %*Equity Multiplier
=4.34 %*4.4809
=19.42 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Oct. 2024 )
=Net Income/Total Stockholders Equity
=2269.296/11686.378
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2269.296 / 2952.288) * (2952.288 / 3040.416) * (3040.416 / 123504.048) * (123504.048 / 52365.085) * (52365.085 / 11686.378)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7687 * 0.971 * 2.46 % * 2.3585 * 4.4809
=19.42 %

Note: The net income data used here is four times the quarterly (Oct. 2024) net income data. The Revenue data used here is four times the quarterly (Oct. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


The Kroger Co ROE % Related Terms

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


The Kroger Co Business Description

Traded in Other Exchanges
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 33 food production plants. The firm also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.

The Kroger Co Headlines

No Headlines