Kellanova (K)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	12,749,000	13,122,000	12,653,000	11,747,000	13,770,000
Total assets	US$ in thousands	15,628,000	15,621,000	18,496,000	18,178,000	17,996,000
Total asset turnover		0.82	0.84	0.68	0.65	0.77

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $12,749,000K ÷ $15,628,000K
= 0.82

The total asset turnover ratio measures how efficiently Kellanova is using its assets to generate sales. The trend in Kellanova's total asset turnover over the past five years indicates fluctuations in asset utilization.

- In 2020, the total asset turnover was 0.77, suggesting that for every dollar of assets Kellanova had, it generated $0.77 in sales. This indicates a moderate level of efficiency in asset utilization.

- In 2021, the total asset turnover decreased to 0.65, signaling a decline in the efficiency of using assets to generate revenue. This could be a cause for concern as it implies that Kellanova may not be effectively leveraging its assets.

- The ratio improved in 2022 to 0.68, although it still remained below the 2020 level. This indicates some progress in asset utilization efficiency but not a full recovery to previous levels.

- By 2023, the total asset turnover had increased significantly to 0.84, surpassing the levels seen in the previous years. This suggests that Kellanova effectively utilized its assets to generate sales during this period.

- In 2024, the total asset turnover slightly decreased to 0.82, but it remained relatively high compared to the earlier years. This indicates continued efficiency in asset utilization, albeit slightly lower than the previous year.

Overall, the fluctuating trend in total asset turnover for Kellanova indicates varying levels of efficiency in utilizing its assets to generate sales over the past five years. It would be essential for Kellanova's management to analyze the underlying reasons for these fluctuations and strive for consistent and optimal asset utilization in the future.