Kroger Return On Equity vs. Net Income
| 0JS2 Stock | 63.02 0.07 0.11% |
For Kroger profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kroger to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kroger Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kroger's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kroger Co over time as well as its relative position and ranking within its peers.
Kroger |
Kroger Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kroger's current stock value. Our valuation model uses many indicators to compare Kroger value to that of its competitors to determine the firm's financial worth. Kroger Co is number one stock in return on equity category among its peers. It also is number one stock in net income category among its peers making up about 8,834,911,486 of Net Income per Return On Equity. At this time, Kroger's Net Income is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Kroger's earnings, one of the primary drivers of an investment's value.Kroger Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Kroger |
| = | 0.24 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Kroger |
| = | 2.15 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Kroger Net Income Comparison
Kroger is currently under evaluation in net income category among its peers.
Kroger Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Kroger, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kroger will eventually generate negative long term returns. The profitability progress is the general direction of Kroger's change in net profit over the period of time. It can combine multiple indicators of Kroger, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -489 M | -2.3 B | |
| Operating Income | 3.1 B | 748.9 M | |
| Income Before Tax | 2.8 B | 421.4 M | |
| Total Other Income Expense Net | -260 M | -327.5 M | |
| Net Income | 2.1 B | 268.9 M | |
| Income Tax Expense | 667 M | 152.5 M | |
| Interest Income | 504.9 M | 403.5 M | |
| Net Income Applicable To Common Shares | 2.6 B | 1.7 B | |
| Change To Netincome | -751 M | -713.5 M |
Kroger Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kroger. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Kroger position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Kroger's important profitability drivers and their relationship over time.
Use Kroger in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Kroger position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kroger will appreciate offsetting losses from the drop in the long position's value.Kroger Pair Trading
Kroger Co Pair Trading Analysis
The ability to find closely correlated positions to Kroger could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kroger when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Kroger - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Kroger Co to buy it.
The correlation of Kroger is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Kroger moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kroger moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Kroger can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Kroger position
In addition to having Kroger in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Kroger Stock Analysis
When running Kroger's price analysis, check to measure Kroger's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Kroger is operating at the current time. Most of Kroger's value examination focuses on studying past and present price action to predict the probability of Kroger's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Kroger's price. Additionally, you may evaluate how the addition of Kroger to your portfolios can decrease your overall portfolio volatility.