Kellanova (K)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.64% | 30.12% | 12.16% | 34.33% | 32.27% |
| Operating profit margin | 11.47% | 9.57% | 12.35% | 12.79% | 10.32% |
| Pretax margin | 9.21% | 9.52% | 13.84% | 11.43% | 9.43% |
| Net profit margin | 7.25% | 7.59% | 10.49% | 9.08% | 7.07% |
Kellanova's profitability ratios have shown fluctuations over the past five years, as indicated by the gross profit margin, operating profit margin, pretax margin, and net profit margin.
Starting with the gross profit margin, Kellanova's margin increased significantly in 2023 compared to 2022 and 2021, indicating that the company has been able to effectively manage its cost of goods sold. This improvement suggests better efficiency in generating revenue after accounting for direct costs.
Moving on to the operating profit margin, there has been a gradual increase from 2020 to 2023, with 2022 showing a slight dip. This indicates that Kellanova has been able to control its operating expenses more effectively over time, resulting in a higher proportion of revenue left over as operating profit.
The pretax margin for Kellanova fluctuated over the five-year period, peaking in 2021 and showing a decline in 2023. This ratio reflects the company's ability to generate profits before accounting for taxes. The decline in 2023 suggests that Kellanova might have faced challenges in maintaining profitability at the pre-tax level.
Finally, the net profit margin also exhibited variability over the years, with the highest margin seen in 2021. This ratio reflects Kellanova's profitability after accounting for all expenses, including taxes. The decrease in 2022 and 2023 compared to 2021 implies that the company's bottom-line profitability has shown some volatility.
In summary, while Kellanova has demonstrated improvements in certain profitability ratios like gross profit margin and operating profit margin, there have been fluctuations in pretax margin and net profit margin. This highlights the importance of closely monitoring and managing costs, expenses, and taxes to sustain and enhance overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.63% | 6.55% | 9.64% | 9.79% | 7.98% |
| Return on assets (ROA) | 6.09% | 5.19% | 8.19% | 6.95% | 5.47% |
| Return on total capital | 18.21% | 17.66% | 17.55% | 17.86% | 13.28% |
| Return on equity (ROE) | 29.95% | 24.36% | 40.00% | 40.20% | 34.95% |
Based on the profitability ratios of Kellanova over the past five years, several insights can be drawn.
1. Operating Return on Assets (Operating ROA) has shown a fluctuating trend, with the highest performance observed in 2023 at 9.63%, indicating the company's ability to generate operating income relative to its total assets has improved. This metric reflects the efficiency of the company in utilizing its assets to generate operating profits.
2. Return on Assets (ROA) has also displayed variability over the period under consideration, with the highest figure recorded in 2021 at 8.19%. ROA provides a broader perspective on overall profitability as it considers net income rather than only operating income. The fluctuations in ROA suggest variations in the company's ability to generate profits from its total assets over the years.
3. Return on Total Capital has shown a relatively stable trend, with an increasing pattern from 2019 to 2021. The highest return was seen in 2023, indicating that the company effectively utilized both debt and equity capital to generate returns for its stakeholders.
4. Return on Equity (ROE) has shown a generally increasing trend, with the highest return recorded in 2021 at 40.00%. ROE reflects the company's ability to generate profits from shareholders' equity, and the increasing trend indicates improved profitability and efficiency in generating returns for equity investors.
Overall, the profitability ratios of Kellanova show fluctuations and trends that reflect the company's ability to generate profits relative to its various resources and capital structures over the past five years. It is essential for stakeholders to monitor these ratios regularly to assess the company's performance and profitability potential.