WK Kellogg Co (KLG)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 109,000 | 108,000 | 131,000 |
| Long-term debt | US$ in thousands | 460,000 | 472,000 | 478,000 |
| Total stockholders’ equity | US$ in thousands | 317,000 | 316,000 | 336,000 |
| Return on total capital | 14.03% | 13.71% | 16.09% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $109,000K ÷ ($460,000K + $317,000K)
= 14.03%
WK Kellogg Co's return on total capital has shown a slight fluctuation over the last three quarters. As of June 30, 2024, the return on total capital stood at 16.09%, indicating that the company generated $16.09 in profit for every $100 of total capital employed. Subsequently, the return on total capital decreased to 13.71% by September 30, 2024, before experiencing a slight improvement to 14.03% by December 31, 2024.
Overall, while the return on total capital saw some variability, WK Kellogg Co has managed to maintain a relatively healthy level of profitability relative to its capital base during the period under review. An upward trend in return on total capital indicates effective capital utilization and profitability, reflecting positively on the company's operational performance.
Peer comparison
Dec 31, 2024