Calculate the following ratios for the most recent two years and comment on the results of your ratio analysis. How do the results for your company compare to industry averages?

a. Return on stockholder's equity

b. Earnings per share (EPS)

c. Price-earnings (PE) ratio

d. Payout ratio

THE KROGER CO.

CONSOLIDATED BALANCE SHEETS

		February 3,			January 28,
(In millions, except par amounts)		2018			2017
ASSETS
Current assets
Cash and temporary cash investments		$	347		$	322
Store deposits in-transit			1,161			910
Receivables			1,637			1,649
FIFO inventory			7,781			7,852
LIFO reserve			(1,248)			(1,291)
Assets held for sale			604
Prepaid and other current assets			835			898
Total current assets			11,117			10,340
Property, plant and equipment, net			21,071			21,016
Intangibles, net			1,100			1,153
Goodwill			2,925			3,031
Other assets			984			965
Total Assets		$	37,197		$	36,505
LIABILITIES
Current liabilities
Current portion of long-term debt including obligations under capital leases and financing obligations		$	3,560		$	2,252
Trade accounts payable			5,858			5,818
Accrued salaries and wages			1,099			1,234
Deferred income taxes						251
Liabilities held for sale			259
Other current liabilities			3,421			3,305
Total current liabilities			14,197			12,860
Long-term debt including obligations under capital leases and financing obligations			12,029			11,825
Deferred income taxes			1,568			1,927
Pension and postretirement benefit obligations			792			1,524
Other long-term liabilities			1,706			1,659
Total Liabilities			30,292			29,795
Commitments and contingencies (see Note 13)
SHAREHOLDERS EQUITY
Preferred shares, $100 per share, 5 shares authorized and unissued
Common shares, $1 par per share, 2,000 shares authorized; 1,918 shares issued in 2017 and 2016			1,918			1,918
Additional paid-in capital			3,161			3,070
Accumulated other comprehensive loss			(471)			(715)
Accumulated earnings			17,007			15,543
Common shares in treasury, at cost, 1,048 shares in 2017 and 994 shares in 2016			(14,684)			(13,118)
Total Shareholders Equity - The Kroger Co.			6,931			6,698
Noncontrolling interests			(26)			12
Total Equity			6,905			6,710
Total Liabilities and Equity		$	37,197		$	36,505

THE KROGER CO.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended February 3, 2018, January 28, 2017 and January 30, 2016

		2017			2016			2015
(In millions)		(53 weeks)			(52 weeks)			(52 weeks)
Net earnings including noncontrolling interests		$	1,889		$	1,957		$	2,049
Other comprehensive income (loss)
Realized and unrealized gains and losses on available for sale securities, net of income tax(1)			4			(20)			3
Change in pension and other postretirement defined benefit plans, net of income tax(2)			214			(64)			131
Unrealized gains and losses on cash flow hedging activities, net of income tax(3)			23			47			(3)
Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax(4)			3			2			1
Total other comprehensive income (loss)			244			(35)			132
Comprehensive income			2,133			1,922			2,181
Comprehensive gain (loss) attributable to noncontrolling interests			(18)			(18)			10
Comprehensive income attributable to The Kroger Co.		$	2,151		$	1,940		$	2,171