Kellanova (K)

Cash conversion cycle

		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	—	—	—	—	—
Cash conversion cycle	days	51.83	51.33	55.27	64.35	51.83

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.83 + — – —
= 51.83

The cash conversion cycle for Kellanova has shown fluctuations over the past five years. In December 2020, the cash conversion cycle was 51.83 days, indicating that the company took approximately 51.83 days to convert its investments in inventory into cash receipts from sales.

The cycle increased in December 2021 to 64.35 days, suggesting a longer period to convert inventory into cash. This increase may indicate challenges in managing inventory levels or delays in collecting receivables.

By December 2022, the cash conversion cycle decreased to 55.27 days, signaling an improvement in the company's efficiency in managing working capital. However, the cycle increased slightly to 51.33 days by December 2023.

In December 2024, the cash conversion cycle returned to 51.83 days, the same level as in December 2020. This stability may suggest that the company has been able to maintain its efficiency in managing cash flow over the five-year period.

Overall, Kellanova's cash conversion cycle has fluctuated but seems to have stabilized around 51.83 days, indicating that the company may have effectively managed its working capital and cash conversion processes. Continued monitoring of this metric will be important to ensure efficient cash management in the future.