Kellanova (K)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,628,000 | 15,621,000 | 18,496,000 | 18,178,000 | 17,996,000 |
| Total stockholders’ equity | US$ in thousands | 3,775,000 | 3,175,000 | 3,941,000 | 3,720,000 | 3,112,000 |
| Financial leverage ratio | 4.14 | 4.92 | 4.69 | 4.89 | 5.78 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,628,000K ÷ $3,775,000K
= 4.14
The financial leverage ratio of Kellanova, which measures the company's level of debt financing relative to equity financing, has shown a declining trend over the past five years. Starting at 5.78 on December 31, 2020, the ratio decreased to 4.89 by December 31, 2021, indicating a lower reliance on debt to fund operations. The trend continued downwards to 4.69 by December 31, 2022, before slightly increasing to 4.92 by December 31, 2023. Most recently, by December 31, 2024, the financial leverage ratio decreased to 4.14, suggesting a more conservative capital structure with a decreasing dependence on debt. This trend may indicate a strategic shift towards a more balanced mix of debt and equity financing to manage financial risk effectively.
Peer comparison
Dec 31, 2024