Albertsons Companies, Inc.

Albertsons maintains a highly leveraged capital structure, with long-term debt of $8.41 billion against total equity of $1.84 billion, resulting in a debt-to-equity ratio of 4.58. The balance sheet shows a current ratio of 0.86, indicating current liabilities exceed current assets, while cash and equivalents stand at $198.6 million. Operating cash flow for the fiscal year was $2.37 billion, providing coverage for interest expenses and debt service, though net cash is negative after subtracting total debt.

Profitability metrics reflect the low-margin nature of grocery retail, with a net income of $217.4 million on $83.17 billion in revenue, yielding a net margin of approximately 0.26%. Return on equity is 11.84%, while return on assets is 0.81%. The company trades at a P/E of 27.76 and an EV/EBITDA of 19.58, valuations that suggest the market prices in significant operational leverage or restructuring benefits despite the thin absolute margins.

Revenue is derived primarily from retail sales, with specific product lines including fresh foods, non-perishables, pharmacy, and fuel. The company operates across multiple geographic regions, with significant exposure to California, Oregon, and Illinois, as indicated by state-level tax and litigation disclosures. The omnichannel platform includes automated self-checkout options and tailored local merchandising.

Growth trajectory data for the full five-year annual or eight-quarter quarterly periods is not explicitly provided in the historical periods table, but the FY2025 revenue of $83.17 billion establishes the scale of operations. Recent interim data for the 40 weeks ended November 29, 2025, shows net sales of $62.92 billion, suggesting consistent top-line volume.

Risk factors include high liquidity risk due to the current ratio below 1.0 and medium dilution risk, with source documents mentioning offering risk. The company faces significant litigation exposure, including opioid settlement frameworks and qui tam lawsuits, which are disclosed as pending or threatened litigation. Additionally, the company has substantial pension obligations, with defined benefit plans for Safeway and Shaw's employees.

Recent events include an 8-K filing with high severity related to material agreements or arrangements (Item 5.02). The company also executed an accelerated share repurchase agreement, purchasing $1.2 billion in treasury stock during the interim period, signaling management's confidence in cash flow generation despite the leverage.

Albertsons generated $83.2 billion in FY2025 revenue, demonstrating significant top-line scale within the retail sector.

Albertsons exhibits best-in-class cash conversion at 10.89, significantly exceeding the 1.49 cohort median.

Gross profit reached $22.6 billion in FY2025, indicating stable gross margin performance despite operating pressures.

Long-term debt remained relatively stable at $8.4 billion in FY2025, suggesting manageable leverage growth.

Operating income plummeted to $728 million in FY2025, a severe decline from $1.55 billion in FY2024.

Net income collapsed to $217 million in FY2025, down sharply from $959 million in the prior year.

The company faces high liquidity and credit risk flags, signaling potential financial distress or solvency concerns.

With a debt-to-equity ratio of 4.58, the company carries significantly higher leverage than the 0.47 cohort median.

Revenue $62.92B; Operating income $1.23B.

• ▍Revenue $62.92B
• ▍Operating income $1.23B
• ▍Net margin 1.1%

Revenue $43.80B; Operating income $744.6M.

• ▍Revenue $43.80B
• ▍Operating income $744.6M
• ▍Net margin 0.9%

Revenue $24.88B; Operating income $449.3M.

• ▍Revenue $24.88B
• ▍Operating income $449.3M
• ▍Net margin 1.0%

Revenue $83.17B; Operating income $727.6M.

• ▍Revenue $83.17B
• ▍Operating income $727.6M
• ▍Net margin 0.3%

Revenue $80.39B; Operating income $1.55B.

• ▍Revenue $80.39B
• ▍Operating income $1.55B
• ▍Net margin 1.2%

Revenue $80.39B; Operating income $1.55B.

• ▍Revenue $80.39B
• ▍Operating income $1.55B
• ▍Net margin 1.2%

Revenue $79.24B; Operating income $2.07B.

• ▍Revenue $79.24B
• ▍Operating income $2.07B
• ▍Net margin 1.6%

Revenue $79.24B; Operating income $2.07B.

• ▍Revenue $79.24B
• ▍Operating income $2.07B
• ▍Net margin 1.6%