Kellanova (K)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.33 | 0.29 | 0.34 | 0.37 | 0.44 |
| Debt-to-capital ratio | 0.62 | 0.57 | 0.63 | 0.68 | 0.74 |
| Debt-to-equity ratio | 1.60 | 1.35 | 1.68 | 2.17 | 2.84 |
| Financial leverage ratio | 4.92 | 4.69 | 4.89 | 5.78 | 6.39 |
The solvency ratios of Kellanova provide insights into the company's ability to meet its financial obligations in the long term.
- Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Over the past five years, Kellanova has maintained a relatively stable debt-to-assets ratio, ranging from 0.29 to 0.44. A decreasing trend in this ratio signifies a lower reliance on debt to finance assets, which could indicate improved financial health.
- Debt-to-capital ratio: Kellanova's debt-to-capital ratio reflects the amount of debt compared to the company's total capital (debt + equity). The company has shown a consistent decrease in this ratio from 0.74 in 2019 to 0.62 in 2023. A lower debt-to-capital ratio suggests a healthier capital structure with less reliance on debt financing.
- Debt-to-equity ratio: This ratio demonstrates the company's leverage by comparing its debt to equity. Kellanova's debt-to-equity ratio has been decreasing over the years, indicating a lower level of debt relative to equity. A downward trend in this ratio typically implies reduced financial risk and improved solvency.
- Financial leverage ratio: The financial leverage ratio of Kellanova has also exhibited a declining pattern, indicating a decreasing reliance on debt to finance the company's assets. This trend suggests that the company is becoming less leveraged over time.
Overall, the solvency ratios of Kellanova demonstrate a positive trend towards lower debt levels and improved financial stability, indicating a stronger ability to meet its long-term financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.97 | 7.50 | 7.86 | 6.27 | 4.93 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. In the case of Kellanova, the interest coverage ratio has fluctuated over the past five years. The trend indicates that the company's ability to cover its interest expenses with operating income has varied.
In 2023, the interest coverage ratio was 4.97, which represents a decrease from the previous year. This suggests that Kellanova's ability to cover its interest expenses with operating income weakened in 2023 compared to 2022. Despite this decrease, the company still generated sufficient operating income to cover its interest payments.
In 2022, the interest coverage ratio improved to 7.50, indicating a stronger ability to cover interest expenses compared to 2021. This improvement may signal better financial health and stability for Kellanova, as the company generated more operating income relative to its interest expenses.
In 2021, the interest coverage ratio was 7.86, showing a slight decrease from the previous year. While the ratio remained relatively high, the slight decline suggests that Kellanova's operating income may not have increased sufficiently to keep pace with its interest expenses.
In 2020, the interest coverage ratio stood at 6.27, indicating a lower ability to cover interest expenses compared to 2019. This decrease could be a cause for concern, as it may suggest that Kellanova was less capable of meeting its interest obligations with its operating income in 2020.
In 2019, the interest coverage ratio was 4.93, showing a similar level of coverage compared to 2023. While the company managed to cover its interest expenses, the ratio indicates that Kellanova's ability to do so was relatively moderate at that time.
Overall, Kellanova's interest coverage ratio has exhibited fluctuations over the years, with some improvements and deteriorations in its ability to cover interest expenses with operating income. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and debt repayment capacity.