Kellanova (K)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.33 | 0.30 | 0.28 | 0.31 | 0.29 | 0.30 | 0.31 | 0.32 | 0.34 | 0.42 | 0.43 | 0.40 | 0.37 | 0.42 | 0.42 | 0.41 | 0.44 | 0.47 | 0.47 | 0.45 |
| Debt-to-capital ratio | 0.62 | 0.58 | 0.56 | 0.59 | 0.57 | 0.57 | 0.59 | 0.61 | 0.63 | 0.69 | 0.70 | 0.70 | 0.68 | 0.72 | 0.73 | 0.74 | 0.74 | 0.75 | 0.77 | 0.77 |
| Debt-to-equity ratio | 1.60 | 1.37 | 1.28 | 1.42 | 1.35 | 1.33 | 1.43 | 1.57 | 1.68 | 2.24 | 2.32 | 2.33 | 2.17 | 2.60 | 2.68 | 2.80 | 2.84 | 3.04 | 3.28 | 3.32 |
| 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 |
Solvency ratios provide insights into a company's ability to meet its long-term debt obligations. Looking at Kellanova's solvency ratios over the past few quarters, we can observe some trends.
The Debt-to-assets ratio has fluctuated between 0.28 and 0.34, indicating that Kellanova's debt as a proportion of its total assets has been relatively stable. A lower ratio suggests lower financial risk as the company relies less on debt to finance its operations.
The Debt-to-capital ratio has ranged from 0.56 to 0.77, showing a moderate upward trend. This ratio reflects the proportion of a company's capital that is financed through debt. The increasing trend suggests that Kellanova has been relying more on debt to fund its operations and investments.
The Debt-to-equity ratio has shown a similar pattern of increase, ranging from 1.28 to 3.32 over the periods examined. This ratio indicates the extent to which a company is using debt to finance its operations compared to equity. The rising ratio suggests that the company's level of leverage has been increasing, which could indicate higher financial risk.
Finally, the Financial leverage ratio has fluctuated between 4.57 and 7.29. This ratio provides an overall measure of a company's financial risk by comparing its total assets to shareholders' equity. The increasing trend in this ratio indicates that Kellanova's level of financial leverage has been rising over time, which could expose the company to higher risks during economic downturns.
Overall, Kellanova's solvency ratios demonstrate a mixed picture of its financial health, with increasing reliance on debt financing and higher levels of leverage. It will be important for the company to closely monitor these ratios and ensure that its debt levels remain sustainable to mitigate potential financial risks in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.97 | 5.62 | 6.12 | 6.44 | 7.50 | 8.14 | 7.91 | 8.17 | 7.86 | 7.04 | 6.69 | 6.43 | 6.27 | 6.70 | 5.93 | 5.40 | 4.93 | 4.63 | 5.08 | 5.40 |
The interest coverage ratio for Kellanova has shown a generally improving trend over the past five years, indicating the company's ability to meet its interest obligations from its operating income. The ratio has consistently been above 4, which is considered a good safety threshold for lenders and investors.
Specifically, the interest coverage ratio has ranged from a low of 4.63 in March 2019 to a high of 8.17 in March 2022. This variability may be a result of fluctuations in operating income or changes in the company's debt levels.
Overall, the trend of increasing interest coverage suggests that Kellanova has been generating sufficient operating income to cover its interest expenses more comfortably over time. This is a positive sign for the company's financial health and ability to meet its debt obligations.