Kellanova (K)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,505,000 | 1,635,000 | 1,752,000 | 1,761,000 | 1,401,000 |
| Long-term debt | US$ in thousands | 5,089,000 | 5,317,000 | 6,262,000 | 6,746,000 | 7,800,000 |
| Total stockholders’ equity | US$ in thousands | 3,175,000 | 3,941,000 | 3,720,000 | 3,112,000 | 2,747,000 |
| Return on total capital | 18.21% | 17.66% | 17.55% | 17.86% | 13.28% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,505,000K ÷ ($5,089,000K + $3,175,000K)
= 18.21%
The return on total capital for Kellanova has been fairly stable and consistent over the past five years, with an average of 17.31%. This indicates that the company has been effective in generating profits from its total capital employed. The slight fluctuations in the return on total capital suggest that Kellanova has been able to maintain a relatively efficient use of its capital resources over the years. The increase in return on total capital from 2019 to 2023 indicates a positive trend in the company's financial performance and efficiency in utilizing its capital to generate returns for its stakeholders. Overall, Kellanova's return on total capital demonstrates a solid financial performance and effective capital management.
Peer comparison
Dec 31, 2023