Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. The Kroger Co's annualizedNet Income for the quarter that ended in Jan. 2024 was $2,944 Mil. The Kroger Co's average total tangible assets for the quarter that ended in Jan. 2024 was $46,953 Mil. Therefore, The Kroger Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2024 was 6.27%.
The historical rank and industry rank for The Kroger Co's Return-on-Tangible-Asset or its related term are showing as below:
KR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.69 Med: 5.93 Max: 9.29
Current: 4.65
During the past 13 years, The Kroger Co's highest Return-on-Tangible-Asset was 9.29%. The lowest was 3.69%. And the median was 5.93%.
KR's Return-on-Tangible-Asset is ranked better than 57.78% of 315
companies
in the Retail - Defensive industry
Industry Median: 3.75
vs KR: 4.65
The Kroger Co Return-on-Tangible-Asset Historical Data
The historical data trend for The Kroger Co's Return-on-Tangible-Asset 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.
Competitive Comparison of The Kroger Co's Return-on-Tangible-Asset
For the Grocery Stores subindustry, The Kroger Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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-Asset Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where The Kroger Co's Return-on-Tangible-Asset falls into.
The Kroger Co Return-on-Tangible-Asset Calculation
The Kroger Co's annualized Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jan. 2024) net income data.
The Kroger Co (NYSE:KR) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
The Kroger Co Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of The Kroger Co's Return-on-Tangible-Asset 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.
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