Kellanova (K)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.14 | 4.92 | 4.69 | 4.89 | 5.78 |
The solvency ratios of Kellanova indicate a strong financial position regarding its ability to meet its long-term obligations. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 over the years from 2020 to 2024. This suggests that Kellanova has financed its assets with a minimal amount of debt compared to its total assets or capital, showcasing a low-risk financial structure.
Furthermore, the Financial leverage ratio has shown a declining trend from 5.78 in 2020 to 4.14 in 2024. This decline indicates that Kellanova has been reducing its reliance on debt to finance its operations over the years, which is a positive sign of financial stability and lower financial risk.
Overall, the solvency ratios of Kellanova demonstrate a healthy and sustainable financial position, with a conservative approach towards debt management and a decreasing dependency on leverage for financing its operations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.32 | 4.97 | 5.49 | 8.08 | 6.70 |
The interest coverage ratio of Kellanova has shown fluctuations over the years. In 2020, the interest coverage ratio was 6.70, indicating that the company generated 6.70 times more earnings before interest and taxes (EBIT) than the interest payable. The ratio improved in 2021 to 8.08, suggesting better ability to cover interest expenses. However, in 2022, the interest coverage ratio decreased to 5.49, indicating a decrease in the company's ability to cover its interest obligations. This trend continued in 2023, with the ratio declining further to 4.97, raising concerns about the company's financial leverage and ability to service its debt. The interest coverage ratio improved slightly in 2024 to 6.32, but it still remains lower than the levels observed in 2021. Overall, the fluctuating trend in the interest coverage ratio of Kellanova raises the need for closer monitoring of the company's financial position and its ability to meet its interest payments in the future.