Kellanova (K)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 1,873,000 1,505,000 1,211,000 1,383,000 1,761,000
Total assets US$ in thousands 15,628,000 15,621,000 18,496,000 18,178,000 17,996,000
Operating ROA 11.98% 9.63% 6.55% 7.61% 9.79%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,873,000K ÷ $15,628,000K
= 11.98%

Operating Return on Assets (Operating ROA) is a key financial ratio used to evaluate a company's efficiency in generating profits from its assets used in operations. Kellanova's Operating ROA has shown a fluctuating trend over the years:

- As of December 31, 2020, Kellanova had an Operating ROA of 9.79%. This indicates that the company was able to generate 9.79 cents of operating profit for every dollar of assets employed in operations.

- By December 31, 2021, Kellanova's Operating ROA declined to 7.61%, suggesting a decrease in the efficiency of asset utilization to generate operating profits.

- The trend continued in 2022, with the Operating ROA further decreasing to 6.55%. This indicates a potential concern regarding the company's ability to effectively utilize its assets to generate operating income.

- However, by December 31, 2023, there was a notable improvement in Kellanova's Operating ROA, which rose to 9.63%. This signals a rebound in the company's operational efficiency and profitability from its asset base.

- The most recent data point, as of December 31, 2024, shows a significant increase in Kellanova's Operating ROA to 11.98%, reflecting a substantial improvement in the company's ability to generate operating income relative to its asset base.

Overall, Kellanova's Operating ROA has displayed fluctuations over the years, with some periods indicating challenges in effectively utilizing assets for operating profit generation and other periods showing improved operational efficiency and profitability. It is essential for the company to monitor and manage its asset utilization closely to ensure sustainable and profitable operations in the future.