Kellanova (K)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,621,000 | 18,695,000 | 18,101,000 | 18,630,000 | 18,496,000 | 19,016,000 | 18,937,000 | 18,612,000 | 18,178,000 | 18,407,000 | 18,213,000 | 18,064,000 | 17,996,000 | 18,922,000 | 18,551,000 | 18,240,000 | 17,564,000 | 17,499,000 | 18,669,000 | 18,465,000 |
| 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 |
| Financial leverage ratio | 4.92 | 4.63 | 4.57 | 4.60 | 4.69 | 4.44 | 4.64 | 4.90 | 4.89 | 5.28 | 5.42 | 5.76 | 5.78 | 6.22 | 6.46 | 6.82 | 6.39 | 6.42 | 7.04 | 7.29 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,621,000K ÷ $3,175,000K
= 4.92
The financial leverage ratio of Kellanova has been fluctuating over the past few quarters. The ratio indicates how much of the company's assets are financed through debt as opposed to equity. A higher financial leverage ratio suggests that the company is relying more on debt to finance its operations.
From the data provided, we can observe that Kellanova's financial leverage ratio has been consistently above 4, indicating a high level of debt relative to equity. The ratio has been trending downwards from a peak of 7.29 in Q1 2019 to a low of 4.57 in Q2 2023, before slightly increasing to 4.92 in Q4 2023.
This downward trend in the financial leverage ratio may suggest that Kellanova has been gradually reducing its reliance on debt to fund its operations. However, it is important to note that a high financial leverage ratio can also indicate potential risks, such as higher interest expenses and financial distress in times of economic downturns.
Overall, Kellanova's financial leverage ratio analysis indicates the company's changing capital structure over time, with a recent trend towards a lower ratio that could imply a shift towards a more conservative financial strategy.
Peer comparison
Dec 31, 2023