The Kroger Company Essay example
Masters
Essay
Finance & Accounting
Pages 6 (1506 words)
Download 0
Kroger Co. is a prominent name in the retail industry. It operates in more than 2400 retail grocery stores and multi-department stores in 31 states. Kroger Co. stands to fulfill customer needs for groceries and much more…

Introduction

Although, most of its competitors have experienced negative sales growth in 2010, Kroger Co. has not failed to keep its shareholders satisfied by steady sales growth in the last 29 quarters. Kroger Co. takes pride in its loyal customer base as approximately one-half of US households have a Kroger loyalty card. This has been a result of Customer 1st strategy that Kroger Co. believes in. It has also been popular among shareholders for its consistent dividend payments. In 2010, it distributed $250 million along with maintaining investment-grade credit rating and reducing long-term debt which eventually resulted in capital gains.
Profitability ratios are an indicator of a company’s performance over the year. Profitability ratios include operating profit margin, net profit margin, return on asset, and return on equity (Puxty, Dodds & Wilson 1988). Sales increased by 7.1% to $82.2 billion in 2010, which is more than its competitors. Operating profit margin for the year 2010 was 2.65% with operating profits of $2.182 billion. Return on sales, also known as net-profit margin, were impressive in 2010 with reported net earnings of $1.12 billion to get $1.74 earning per diluted share. Net profit margin for the year was 1.36%. Shareholders are also interested in return on assets and equity. ...
Download paper
Not exactly what you need?

Related papers

Financial Reporting
Kroger Co. has a substantial customer base and it and it takes great pride in its loyal customer base as approximately one half of US households have a Kroger loyalty card. This has been a result of Customer 1st strategy that Kroger Co. believes in. It has also been popular among shareholders for its consistent dividend payments. In 2010, it gave out $250 million along with maintaining high…
Companies Research
Total Asset Turnover has been on the high for Kroger and Wall-Mart with 3.487 and 2.335 respectively. Eaton has failed to maintain a high ratio; its turnover ratio stands at 0.795. Eaton Corporation has struggled in this regard as well, which is evident by its last position in the industry with respect to earnings produced with each dollar spent on an asset. Total Debt to equity ratio has been…
Financial Analysis for Kroger Co.
For an industry like Kroger’s, the most important factor for consumers is price. The products available in supermarkets are not differentiated and therefore they cannot be advertised heavily. Much of the advertisement that is done is carried out on the basis of attracting families to shop at Kroger because it is cost effective to do so. Apart from being cost effective Kroger also has products of…
S.W.O.T. Analysis of Kroger Co.
There are 2,461 multidepartment stores and supermarkets owned by Kroger, and 954 of them have fuel centers. Apart from the supermarkets, Kroger operates 375 fine jewelry stores and 784 convenience stores (GlobalData, 2012). All the jewelry stores of Kroger are located in malls, which are situated in leased locations. Eighty-three convenience stores are operated under franchise agreements. Close to…
Retail Marketing. Presentation (finance part)
The total sales growth percentage of Whole Foods was high in 2012 with a percentage of 13.6% which is higher than that of Kroger Co which was 6.6% at that period. Kroger Co had a total sales percentage growth of 0.8% in 2011 while Whole Foods had a percentage of 10.9% which indicated that Whole Foods performed better than Kroger Co. The growth in sales is an indication of a better performance and…
Stock Analysis
The earnings per share (EPS) of the company are 5.08 and the company’s internal growth rate is expected to be 14.994%. The company’s sales and revenues are expected to grow at 5.00% and 7.80% respectively. Target is the second largest retailer in United States following Walmart. For the year ending 2012, the company has reported a net profit of US$ 2.93 billion from total sales of US$ 69.865…
Financial Statment Analyasys
was established in the year 1980 for retail sale of “natural and organic foods” (Edgar Online 1). It became the first grocer enterprise to receive national organic certification among grocers. The organization’s history has been based on its mission of quality products towards high health standards and supports national movements for natural and organic foods. The organization floated its…