Kellanova (K)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.72 | 0.80 | 0.70 | 0.68 |
| Quick ratio | 0.36 | 0.46 | 0.35 | 0.06 | 0.33 | 0.06 | 0.06 | 0.05 | 0.33 | 0.17 | 0.16 | 0.15 | 0.16 | 0.26 | 0.21 | 0.18 | 0.08 | 0.10 | 0.07 | 0.05 |
| Cash ratio | 0.05 | 0.17 | 0.05 | 0.06 | 0.05 | 0.06 | 0.06 | 0.05 | 0.05 | 0.17 | 0.16 | 0.15 | 0.16 | 0.26 | 0.21 | 0.18 | 0.08 | 0.10 | 0.07 | 0.05 |
The liquidity ratios of Kellanova over the past few periods indicate that the company may be facing challenges meeting its short-term financial obligations.
The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has been consistently below 1, ranging between 0.64 to 0.76. A ratio below 1 may indicate that Kellanova may have difficulty in meeting its short-term obligations as they come due.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Kellanova's quick ratios have been even lower than the current ratio, ranging from 0.05 to 0.46. A quick ratio below 1 suggests that the company may struggle to meet its immediate obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents in the numerator, has also been low for Kellanova, ranging from 0.05 to 0.26. This indicates that the company may have a limited ability to cover its short-term liabilities solely with cash resources.
Overall, based on the liquidity ratios, Kellanova may be facing liquidity challenges that could potentially impact its ability to meet its short-term financial obligations. Management may need to closely monitor and improve the company's liquidity position to ensure its financial stability and sustainability.
See also:
Kellanova Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -0.61 | 5.18 | 9.63 | -38.84 | 5.09 | -36.09 | -33.62 | -33.47 | 3.89 | -36.07 | -38.52 | -42.71 | -47.91 | -48.64 | -46.94 | -45.98 | -46.08 | -44.71 | -46.24 | -42.22 |
The cash conversion cycle of Kellanova has fluctuated over the past several periods, indicating some inconsistency in the company's management of its working capital. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales to customers, and then back into cash through the collection of accounts receivable.
On Dec 31, 2023, the cash conversion cycle stands at -0.61 days, which suggests that the company is able to convert its resources into cash and collect receivables relatively quickly. However, on Jun 30, 2023, the cycle increases to 9.63 days, indicating a lengthening in the time it takes for Kellanova to convert its resources into cash.
On Mar 31, 2023, the cash conversion cycle is significantly negative at -38.84 days, which could indicate efficient management of working capital but should be carefully monitored to ensure sustainability. Overall, the variations in the cash conversion cycle over the reporting periods may signal potential challenges in managing inventory, receivables, and payables effectively.
The negative values in the cash conversion cycle indicate that in some periods, Kellanova is able to collect cash from customers before paying its suppliers, leading to a more efficient cycle. However, the company should aim for a more consistent and positive cash conversion cycle to ensure healthy cash flow management in the long term.