Kellanova (K)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,505,000 | 1,766,000 | 1,652,000 | 1,558,000 | 1,635,000 | 1,629,000 | 1,708,000 | 1,797,000 | 1,752,000 | 1,808,000 | 1,772,000 | 1,774,000 | 1,761,000 | 1,736,000 | 1,588,000 | 1,479,000 | 1,401,000 | 1,367,000 | 1,500,000 | 1,577,000 |
| Long-term debt | US$ in thousands | 5,089,000 | 5,530,000 | 5,078,000 | 5,759,000 | 5,317,000 | 5,697,000 | 5,838,000 | 5,953,000 | 6,262,000 | 7,800,000 | 7,800,000 | 7,300,000 | 6,746,000 | 7,900,000 | 7,700,000 | 7,500,000 | 7,800,000 | 8,300,000 | 8,700,000 | 8,400,000 |
| Total stockholders’ equity | US$ in thousands | 3,175,000 | 4,038,000 | 3,965,000 | 4,052,000 | 3,941,000 | 4,283,000 | 4,082,000 | 3,795,000 | 3,720,000 | 3,484,000 | 3,362,000 | 3,138,000 | 3,112,000 | 3,044,000 | 2,870,000 | 2,674,000 | 2,747,000 | 2,727,000 | 2,650,000 | 2,533,000 |
| Return on total capital | 18.21% | 18.46% | 18.27% | 15.88% | 17.66% | 16.32% | 17.22% | 18.43% | 17.55% | 16.02% | 15.88% | 17.00% | 17.86% | 15.86% | 15.02% | 14.54% | 13.28% | 12.40% | 13.22% | 14.42% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown fluctuation over the past few quarters, ranging from a low of 12.40% in March 2020 to a high of 18.46% in September 2023. Overall, the return on total capital has been relatively healthy, consistently above 15% in most quarters.
The upward trend in the return on total capital from the end of 2021 to September 2023 indicates an improvement in the company's ability to generate profits relative to its total capital employed. The peak in September 2023 suggests that Kellanova has been effectively utilizing its capital to generate returns for its investors.
It is important for Kellanova to maintain this positive trend in the return on total capital to ensure sustained profitability and efficiency in its capital allocation strategies. Further analysis of the underlying factors influencing this ratio would provide deeper insights into the company's performance and financial health.
Peer comparison
Dec 31, 2023