Kroger Company (The) — Earnings Quality Grade F
KR · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 5 days, change -0 days YoY
AR growth -0.1% vs revenue growth 0.4%
Revenue 0.4%, CFFO 26.2%. Cash follows revenue
Expense Quality
Inventory -2.1% vs COGS -0.4%. Normal
CapEx growth -4.0% vs revenue 0.4%. Normal
SG&A/Gross Profit = 2.5%, excellent (<30%)
Gross margin 23.3%, change +0.6pp. Stable
Cash Flow Quality
CFFO/NI = 7.20. Profits backed by cash
FCF $3.5B, FCF/NI = 3.40
Accruals ratio = -12.6%. Low accruals
Cash $4.6B covers only 19% of debt $24.7B
Balance Sheet Health
Goodwill+Intangibles $3.4B = 57% of equity. Over 50%
Debt/EBITDA = 4.3x (>4x). Financial stress
Other assets -14.7% vs revenue 0.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -3.12 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10