Kellanova (K)
Cash conversion cycle
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Days of inventory on hand (DOH) | days | 51.83 | 64.03 | 61.46 | 60.81 | 60.88 | 63.15 | 61.77 | 62.34 | 45.68 | 58.79 | 60.60 | 58.57 | 53.04 | 53.03 | 53.83 | 52.37 | 51.83 | 51.80 | 49.65 | 47.95 |
Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Cash conversion cycle | days | 51.83 | 64.03 | 61.46 | 60.81 | 60.88 | 63.15 | 61.77 | 62.34 | 45.68 | 58.79 | 60.60 | 58.57 | 53.04 | 53.03 | 53.83 | 52.37 | 51.83 | 51.80 | 49.65 | 47.95 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.83 + — – —
= 51.83
The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales. For Kellanova, the cash conversion cycle has fluctuated over the past few years, indicating changes in the efficiency of its operations.
From March 31, 2020, to June 30, 2021, the cash conversion cycle increased steadily, reaching its peak at 53.83 days. This suggests that Kellanova may have faced challenges in managing its inventory and collecting receivables efficiently during this period.
Subsequently, there was a slight decrease in the cash conversion cycle by December 31, 2021, to 53.04 days. This could indicate improvements in inventory management and quicker turnover of assets.
From March 31, 2022, to September 30, 2024, the cash conversion cycle fluctuated within a range but remained relatively high compared to previous periods. This might imply ongoing challenges in optimizing working capital and converting investments into cash effectively.
By December 31, 2024, the cash conversion cycle decreased notably to 51.83 days, potentially reflecting efforts by Kellanova to streamline its operations and enhance liquidity.
Overall, Kellanova's cash conversion cycle trend indicates the company's ability to efficiently manage its working capital and convert investments into cash, with fluctuations reflecting changes in operational efficiency and effectiveness in managing inventory, receivables, and payables.
Peer comparison
Dec 31, 2024