Analysis of Property, Plant and Equipment
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Property, Plant and Equipment Disclosure
Kellanova, balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
The analysis of the annual property, plant, and equipment values reveals several noteworthy trends and fluctuations over the observed periods.
- Land
- The value of land remained relatively stable, with a slight increase from 116 million USD in 2019 to 123 million USD in 2021, followed by a gradual decrease to 107 million USD in 2023. This suggests minor disposals or revaluations over the period.
- Buildings
- Building values rose steadily from 2021 million USD in 2019 to a peak of 2,274 million USD in 2022, before experiencing a significant decline to 1,722 million USD in 2023. This sharp drop in the latest year could indicate disposals, impairments, or reclassification of assets.
- Machinery and equipment
- Values showed a consistent incremental growth from 5,852 million USD in 2019 to 6,339 million USD in 2022. However, a considerable decrease to 4,690 million USD in 2023 is evident, pointing to potential asset sales, write-downs, or reduced capital expenditure preceding 2023.
- Capitalized software
- Capitalized software increased steadily from 496 million USD in 2019 to 594 million USD in 2021, then declined to 435 million USD in 2023. This decline suggests possible amortization policies or reduced capitalization in recent years.
- Construction in progress
- The construction in progress asset category showed modest fluctuations, increasing from 566 million USD in 2019 to 660 million USD in 2022, then decreasing to 591 million USD in 2023. This reflects ongoing investment projects, with some completion or reclassification influencing values in the final year.
- Property, gross
- The gross property value trended upwards from 9,051 million USD in 2019 to a peak of 9,881 million USD in 2022 before a notable decline to 7,545 million USD in 2023. This reduction corresponds with drops in buildings and machinery values, indicating overall asset base contraction.
- Accumulated depreciation
- Accumulated depreciation increased steadily from -5,439 million USD in 2019 to -6,092 million USD in 2022, followed by a significant decrease to -4,333 million USD in 2023. This unusual reversal likely stems from asset disposals or impairments, reducing the depreciated asset base.
- Property, net
- Net property values rose gradually from 3,612 million USD in 2019 to a high of 3,827 million USD in 2021, then declined to 3,212 million USD in 2023. The decline in net property reflects the combined effects of decreased gross assets and changes in accumulated depreciation.
Overall, the data illustrates an expansion phase of property, plant, and equipment up to 2022, followed by a marked contraction in 2023. The declines in buildings, machinery, and accumulated depreciation in the latest year suggest significant asset disposals, impairments, or changes in accounting treatment impacting the capital asset base.
Asset Age Ratios (Summary)
Kellanova, asset age ratios
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
The data indicates that the average age ratio of property, plant, and equipment exhibits a general upward trend from 2019 to 2022, increasing from 60.87% to 62.34%. This gradual rise over the four-year period suggests that the overall asset base has been aging, potentially reflecting a slowing pace of new asset acquisitions or replacement.
However, in 2023, there is a noticeable decline in the average age ratio to 58.25%, indicating a relatively younger asset base compared to the previous year. This decrease could imply that the company has invested in new property, plant, and equipment assets or has disposed of older assets, thereby reducing the average age of its asset portfolio.
Overall, the trend reveals that the asset base was aging consistently from 2019 through 2022 but experienced rejuvenation in 2023, which may have positive implications for operational efficiency and future capital expenditure requirements.
Average Age
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Accumulated depreciation | ||||||
| Property, gross | ||||||
| Land | ||||||
| Asset Age Ratio | ||||||
| Average age1 | ||||||
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
2023 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, gross – Land)
= 100 × ÷ ( – ) =
The analysis of the property, plant, and equipment data reveals several key trends and changes over the five-year period.
- Property, Gross
- The gross property value showed a steady increase from 2019 to 2022, rising from approximately 9,051 million US dollars to 9,881 million US dollars. However, in 2023, there was a notable decline to 7,545 million US dollars, indicating a significant reduction in the gross value of property assets during the latest year.
- Accumulated Depreciation
- Accumulated depreciation increased consistently from 5,439 million US dollars in 2019 to 6,092 million US dollars in 2022, reflecting the aging and depreciation of the property assets over time. Interestingly, in 2023, accumulated depreciation decreased sharply to 4,333 million US dollars, which is an unusual reversal that may suggest asset disposals, revaluation, or changes in depreciation policies.
- Land
- The value of land remained relatively stable throughout the period, fluctuating slightly but generally around 107 to 123 million US dollars, with a slight decrease noted in the final two years from 123 million in 2021 to 107 million in 2023.
- Average Age Ratio
- The average age ratio of the property, plant, and equipment exhibited a gradual increase from 60.87% in 2019 to a peak of 62.34% in 2022, suggesting aging assets over these years. In 2023, the ratio declined to 58.25%, indicating a relative rejuvenation or replacement of assets, possibly aligned with the observed changes in gross property and accumulated depreciation values.
Overall, the data reflects a period of asset growth and aging up to 2022, followed by significant reductions in both gross property value and accumulated depreciation in 2023, alongside a decrease in the average age ratio, potentially signaling recent asset disposals, revaluations, or major investments in newer assets.