Kellanova (K)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 951,000 | 960,000 | 1,488,000 | 1,251,000 | 960,000 |
| Total stockholders’ equity | US$ in thousands | 3,175,000 | 3,941,000 | 3,720,000 | 3,112,000 | 2,747,000 |
| ROE | 29.95% | 24.36% | 40.00% | 40.20% | 34.95% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $951,000K ÷ $3,175,000K
= 29.95%
Kellanova's return on equity (ROE) has demonstrated fluctuating patterns over the past five years. The ROE was 29.95% in 2023, showing a slight increase from the previous year's 24.36% in 2022. However, the ROE was notably lower compared to the figures of 40.00% in 2021 and 40.20% in 2020. In 2019, the ROE was 34.95%, which was also higher than the most recent figure.
The variations in ROE indicate changes in the company's profitability in relation to shareholder equity. A decreasing ROE could signify declining efficiency in generating profits with the capital provided by shareholders. Conversely, an increasing ROE implies improved efficiency in utilizing shareholder funds to generate earnings.
Further analysis would be required to understand the factors driving these changes in ROE for Kellanova. It is essential to investigate the company's financial performance, operational efficiency, leverage ratios, and overall management effectiveness to gain insights into the underlying reasons for the fluctuating ROE.
Peer comparison
Dec 31, 2023