Kellanova (K)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	3,754,000	3,330,000	4,186,000	3,394,000	3,482,000
Total current liabilities	US$ in thousands	4,660,000	5,060,000	6,349,000	5,315,000	5,238,000
Current ratio		0.81	0.66	0.66	0.64	0.66

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,754,000K ÷ $4,660,000K
= 0.81

Based on the data provided, Kellanova's current ratio has shown some fluctuation over the past five years. The current ratio measures the company's ability to meet its short-term liabilities with its short-term assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

In December 31, 2020, the current ratio was 0.66, indicating that Kellanova had more short-term liabilities than assets to cover them. This ratio decreased slightly to 0.64 by December 31, 2021, suggesting a further deterioration in the company's short-term liquidity position.

However, there was a slight improvement in the current ratio in the following years, with ratios of 0.66 in both December 31, 2022 and December 31, 2023. This stability may indicate that Kellanova managed to better balance its short-term assets and liabilities during these periods.

The most notable change occurred in December 31, 2024, where the current ratio increased to 0.81. This significant improvement suggests that Kellanova may have increased its short-term assets relative to its short-term liabilities, enhancing its liquidity position.

Overall, while Kellanova's current ratio has exhibited some variability, the recent uptick in the ratio signals a potentially healthier financial position in terms of short-term liquidity compared to the earlier years in the observation period. Ongoing monitoring of the current ratio will be crucial to assess the company's ability to meet its short-term obligations in the future.