Kellanova (K)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,965,000 | 1,505,000 | 1,103,000 | 1,657,000 | 1,882,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,775,000 | 3,175,000 | 3,941,000 | 3,720,000 | 3,112,000 |
| Return on total capital | 52.05% | 47.40% | 27.99% | 44.54% | 60.48% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,965,000K ÷ ($—K + $3,775,000K)
= 52.05%
Kellanova's return on total capital has exhibited fluctuations over the years based on the data provided. In December 2020, the return on total capital was notably high at 60.48%, indicating effective utilization of both debt and equity to generate profits. However, this figure decreased to 44.54% by December 2021, suggesting a potential decrease in operational efficiency or changes in capital structure.
In 2022, the return on total capital further declined to 27.99%, signaling potential challenges or inefficiencies in the company's capital allocation strategies. The following year, in December 2023, there was a significant improvement as the return on total capital rose to 47.40%, indicating a potential turnaround in operational performance or capital management.
By December 2024, Kellanova's return on total capital increased further to 52.05%, showcasing a continued recovery or possibly enhanced profitability relative to the capital employed. Overall, the fluctuation in return on total capital over the years suggests varying levels of efficiency and effectiveness in Kellanova's capital utilization, which could be influenced by internal operational factors and external market conditions.
Peer comparison
Dec 31, 2024