Kellanova (K)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.81 | 0.77 | 0.73 | 0.62 | 0.66 | 0.76 | 0.66 | 0.72 | 0.66 | 0.74 | 0.70 | 0.65 | 0.64 | 0.76 | 0.76 | 0.68 | 0.66 | 0.79 | 0.77 | 0.77 |
| Quick ratio | 0.15 | 0.12 | 0.06 | 0.05 | 0.06 | 0.17 | 0.05 | 0.06 | 0.05 | 0.06 | 0.06 | 0.05 | 0.06 | 0.10 | 0.09 | 0.07 | 0.16 | 0.26 | 0.21 | 0.18 |
| Cash ratio | 0.15 | 0.12 | 0.06 | 0.05 | 0.06 | 0.17 | 0.05 | 0.06 | 0.05 | 0.06 | 0.06 | 0.05 | 0.06 | 0.10 | 0.09 | 0.07 | 0.16 | 0.26 | 0.21 | 0.18 |
The current ratio for Kellanova has been fairly stable over the past few years, ranging from 0.62 to 0.81, indicating that the company may have some challenges meeting its short-term obligations with its current assets.
On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, shows a decline from 0.21 to 0.15 as of December 31, 2024. This suggests that Kellanova may struggle to meet its immediate liabilities with its most liquid assets.
The cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents, has also declined over the years, from 0.26 to 0.15 as of December 31, 2024. This indicates that Kellanova may have limited ability to cover its current liabilities solely with its cash reserves.
In summary, Kellanova's liquidity ratios paint a concerning picture of its ability to meet short-term obligations, especially when using more stringent measures of liquidity. Management should closely monitor these ratios and take appropriate actions to improve the company's liquidity position.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Kellanova has shown fluctuations over the years based on the provided data. The trend indicates an increase in the days it takes for the company to convert its investments in inventory and other resources into cash.
From March 31, 2020, to December 31, 2020, the cash conversion cycle increased gradually from 47.95 days to 51.83 days. The trend continued with slight variations until March 31, 2022, reaching a peak of 58.57 days. This suggests that Kellanova may have faced challenges in efficiently managing its working capital during this period.
However, from December 31, 2022, to June 30, 2024, there was a noticeable decline in the cash conversion cycle, dropping to as low as 45.68 days by the end of December 31, 2022. This improvement indicates potential enhancements in inventory management and collection processes, positively impacting the company's liquidity position.
The subsequent increase in the cash conversion cycle from March 31, 2023, to September 30, 2024, may raise concerns about Kellanova's operational efficiency and cash flow management. Monitoring and optimizing the cash conversion cycle can help the company enhance its financial performance and ensure sustainable growth in the future.