Kellanova (K)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,343,000	951,000	960,000	1,488,000	1,251,000
Total stockholders’ equity	US$ in thousands	3,775,000	3,175,000	3,941,000	3,720,000	3,112,000
ROE		35.58%	29.95%	24.36%	40.00%	40.20%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,343,000K ÷ $3,775,000K
= 35.58%

The Return on Equity (ROE) is a key financial ratio that measures a company's profitability in generating returns for its shareholders' equity.

Analyzing Kellanova's ROE over the past five years reveals fluctuations in performance. As of December 31, 2020, the ROE stood at an impressive 40.20%, indicating that for every dollar of shareholder equity, the company generated a return of 40.20 cents.

In the subsequent year, the ROE remained strong at 40.00%, suggesting sustained profitability and efficiency in utilizing shareholders' equity. However, a notable decline was observed by December 31, 2022, where the ROE dropped to 24.36%. This decrease could signal potential challenges in maintaining profitability or using equity less efficiently during that period.

Subsequently, the company's ROE showed signs of improvement by December 31, 2023, reaching 29.95%. This uptick could indicate efforts to enhance profitability or streamline operations. By the end of 2024, the ROE further improved to 35.58%, suggesting a positive trajectory in generating returns for shareholders' equity.

Overall, Kellanova's ROE performance reflects a mix of strong profitability, occasional fluctuations, and a general upward trend in recent years. Further analysis of the company's financial and operational strategies would provide valuable insights into the factors driving these ROE fluctuations.