WK Kellogg Co (KLG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |
|---|---|---|---|
| Gross profit margin | 3.88% | 3.12% | 3.97% |
| Operating profit margin | 4.03% | 4.01% | 4.86% |
| Pretax margin | 3.14% | 3.45% | 6.04% |
| Net profit margin | 2.66% | 2.52% | 4.48% |
WK Kellogg Co's profitability ratios for the periods ending June 30, September 30, and December 31, 2024, provide insights into its financial performance.
1. Gross Profit Margin:
- The company's gross profit margin fluctuated over the periods, ranging from 3.12% to 3.97%.
- Gross profit margin represents the percentage of revenue left after deducting the cost of goods sold. The higher the margin, the more efficiently the company is producing its goods.
2. Operating Profit Margin:
- WK Kellogg Co's operating profit margin ranged from 4.01% to 4.86% during the periods.
- The operating profit margin reflects the company's ability to generate profits from its core operations after accounting for operating expenses.
3. Pretax Margin:
- The pretax margin declined from 6.04% to 3.14% between June and December 2024.
- This margin indicates the company's profitability before considering taxes, showing how efficiently it operates before tax implications.
4. Net Profit Margin:
- The net profit margin also decreased from 4.48% to 2.66% over the periods.
- Net profit margin shows the portion of revenue that translates into net income after all expenses, including taxes. A higher net profit margin signifies better efficiency in managing costs and operations.
Overall, WK Kellogg Co experienced variations in its profitability margins, with some declining trends observed in the net profit margin and pretax margin. Monitoring these ratios can help assess the company's operational efficiency and financial health.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.56% | 5.68% | 6.91% |
| Return on assets (ROA) | 3.67% | 3.58% | 6.38% |
| Return on total capital | 14.03% | 13.71% | 16.09% |
| Return on equity (ROE) | 22.71% | 21.52% | 36.01% |
WK Kellogg Co's profitability ratios provide insight into the company's ability to generate profits relative to its assets and capital.
1. Operating return on assets (Operating ROA) has been fluctuating over the periods analyzed, with the highest ratio of 6.91% in June 30, 2024, indicating that the company generated $0.0691 in operating income for every dollar of assets in that period.
2. Return on assets (ROA) also shows variability, with the highest ratio of 6.38% recorded on June 30, 2024. This ratio indicates that the company earns $0.0638 in net income for every dollar of assets in that period.
3. Return on total capital displays a similar trend, with the highest ratio of 16.09% in June 30, 2024, suggesting efficient utilization of both debt and equity capital to generate profits.
4. Return on equity (ROE) peaked at 36.01% on June 30, 2024, reflecting strong profitability in relation to shareholders' equity, indicating that the company generated $0.3601 in net income for every dollar of shareholders' equity during that period.
Overall, WK Kellogg Co's profitability ratios demonstrate varying levels of profitability and efficiency in utilizing its assets and capital over the periods analyzed. It is essential for the company to monitor and improve these ratios to ensure sustainable profitability and value creation for its stakeholders.