Kellanova (K)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 7.04 | 7.11 | 6.60 | 5.67 | 7.04 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Based on the provided data, let's analyze the activity ratios for Kellanova:
1. Inventory Turnover:
- The inventory turnover ratio for Kellanova has been somewhat fluctuating over the years. It decreased from 7.04 in 2020 to 5.67 in 2021, then increased to 6.60 in 2022, further increased to 7.11 in 2023, and finally settled back at 7.04 in 2024.
- A higher inventory turnover ratio generally indicates that the company is selling its inventory more efficiently, which can be positive as it implies lower holding costs and faster cash conversion cycle.
2. Receivables Turnover:
- The data shows no information available for the receivables turnover ratio for Kellanova over the specified years. This could be due to various reasons, such as the absence of credit sales or data unavailability.
3. Payables Turnover:
- Similar to receivables turnover, no information is provided for the payables turnover ratio for Kellanova. This ratio is essential for assessing how quickly a company pays its suppliers, but without data, it is challenging to evaluate this aspect for the company.
4. Working Capital Turnover:
- There is no data available for the working capital turnover ratio for Kellanova, indicating a lack of information to assess how effectively the company is utilizing its working capital to generate sales.
In conclusion, while the inventory turnover ratio provides some insight into Kellanova's efficiency in managing inventory, the absence of data for receivables turnover, payables turnover, and working capital turnover limits a comprehensive assessment of the company's overall activity ratios. It's important to consider these ratios collectively to gain a more holistic view of Kellanova's operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.83 | 51.33 | 55.27 | 64.35 | 51.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Kellanova's activity ratios provide insights into the efficiency of its operations and management of working capital.
1. Days of Inventory on Hand (DOH):
- Kellanova's DOH has shown some fluctuations over the years, starting at 51.83 days in 2020, peaking at 64.35 days in 2021, and then gradually decreasing to 51.33 days by 2023 before rising slightly to 51.83 days in 2024.
- A higher DOH indicates that inventory is being held for a longer period, potentially tying up working capital and increasing storage costs. Conversely, a lower DOH suggests more efficient inventory management.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO for Kellanova, which is typically used to assess how long it takes for the company to collect payments from customers.
- A lower DSO is generally desirable as it indicates quicker collection of receivables and better cash flow management.
3. Number of Days of Payables:
- Similar to DSO, the information for the number of days of payables is missing for Kellanova.
- Monitoring the number of days of payables is crucial as it reflects how long the company takes to pay its suppliers. A longer period may indicate an ability to manage cash flow effectively, but it could also strain vendor relationships.
In conclusion, while the DOH data indicates some changes in inventory management efficiency for Kellanova, the lack of information on DSO and payables limits a comprehensive assessment of the company's overall operating efficiency and working capital management. Further details on these ratios would provide a more complete picture of Kellanova's activity performance.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.87 | 2.63 | 3.71 |
| Total asset turnover | 0.82 | 0.84 | 0.68 | 0.65 | 0.77 |
Based on the provided data for Kellanova's long-term activity ratios, we can analyze the fixed asset turnover and total asset turnover over the past five years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher ratio indicates better utilization of fixed assets.
- In 2020, Kellanova had a fixed asset turnover of 3.71, which decreased to 2.63 in 2021, indicating a decline in the efficiency of generating revenue from fixed assets.
- The ratio improved slightly to 2.87 in 2022, suggesting better utilization of fixed assets compared to the previous year.
- There is missing data for 2023 and 2024, making it challenging to assess the trend accurately for those years.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company utilizes its total assets to generate revenue. A higher ratio implies better asset utilization.
- Kellanova's total asset turnover decreased from 0.77 in 2020 to 0.65 in 2021, indicating a decrease in the efficiency of generating revenue from total assets.
- However, the ratio improved to 0.68 in 2022, suggesting a slight recovery in asset utilization.
- By 2023, the total asset turnover ratio increased significantly to 0.84, indicating an improvement in efficiency in generating revenue from total assets.
- In 2024, the ratio slightly decreased to 0.82, but it remained higher compared to the previous years.
In conclusion, Kellanova experienced fluctuations in both fixed asset turnover and total asset turnover ratios over the past five years. While the company showed some improvements in asset utilization, the missing data for 2023 and 2024 limits a comprehensive trend analysis. Further examination of the financial statements and industry benchmarks would provide a more in-depth understanding of Kellanova's long-term activity performance.