Kellanova (K)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 1.60 | 1.35 | 1.68 | 2.17 | 2.84 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,089,000K ÷ $3,175,000K
= 1.60
The debt-to-equity ratio for Kellanova has shown fluctuations over the past five years. In 2023, the ratio decreased to 1.60 from 1.35 in 2022, indicating a lower level of debt relative to equity compared to the previous year. This improvement suggests that Kellanova may have reduced its reliance on debt financing or increased its equity position during the year.
However, when compared to 2021, where the ratio was 1.68, the current ratio of 1.60 indicates a relatively healthier capital structure at the end of 2023. Furthermore, the significant drop from the ratios of 2.17 in 2020 and 2.84 in 2019 suggests that Kellanova has made progress in decreasing its debt levels and/or increasing its equity investment over the recent years.
Overall, the decreasing trend in the debt-to-equity ratio over the past five years reflects a positive development in Kellanova's financial leverage and capital structure, potentially enhancing its financial stability and solvency position. However, it is important for Kellanova to continue monitoring and managing its debt and equity levels effectively to maintain a healthy balance between the two components.
Peer comparison
Dec 31, 2023