Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Kellanova, consolidated balance sheet: assets
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 financial data reveals several key trends and fluctuations in asset components over the five-year period ending in December 2023.
- Cash and cash equivalents
- Cash reserves have shown a general decline from US$397 million in 2019 to US$274 million in 2023, with a slight recovery in 2022 compared to 2021 levels. This indicates a decrease in liquid assets available for immediate use.
- Accounts receivable, net
- Accounts receivable remained relatively stable from 2019 through 2021, with a decline in 2021 followed by a noticeable increase in 2022, reaching the highest value of US$1,736 million, before declining again in 2023. This could reflect fluctuations in sales credit terms or customer payment patterns.
- Inventories
- Inventories rose steadily from 2019 to 2022, peaking at US$1,768 million, but sharply decreased in 2023 to US$1,243 million. This volatility suggests changes in inventory management or demand forecasts, possibly adjusting to market conditions.
- Other current assets
- Other current assets showed a significant increase in 2022 to US$383 million before decreasing in 2023 to US$245 million. This pattern indicates a temporary build-up of miscellaneous current assets in 2022.
- Current assets
- Current assets remained relatively consistent around the mid-US$3,400 million range during 2019 to 2021, increased significantly to US$4,186 million in 2022, and then declined to US$3,330 million in 2023. The peak in 2022 largely reflects the increases in inventories, accounts receivable, and other current assets during that year.
- Property, net
- Property assets grew moderately from US$3,612 million in 2019 to peak at US$3,827 million in 2021, then declined gradually to US$3,212 million by 2023, indicating possible asset disposals or depreciation outpacing capital expenditures in recent years.
- Operating lease right-of-use assets
- These assets have increased steadily overall from US$541 million in 2019 to US$661 million in 2023, reflecting ongoing lease commitments or capitalization of new leases.
- Goodwill
- Goodwill decreased gradually from US$5,861 million in 2019 to US$5,160 million in 2023, indicating potential impairment charges or disposals related to acquisitions over the period.
- Other intangibles, net
- Other intangible assets saw a steady decline from US$2,576 million in 2019 to US$1,930 million in 2023, suggesting amortization or write-downs impacting this category consistently.
- Investment in unconsolidated entities
- This investment category remained stable through 2022 but dropped sharply from US$432 million in 2022 to US$184 million in 2023, possibly due to divestitures or reclassification.
- Pension and Nonpension post retirement benefits
- Pension-related assets peaked at US$448 million in 2021 before decreasing to US$201 million in 2023. Nonpension post retirement benefits also rose sharply to US$577 million in 2021, then decreased significantly to US$311 million in 2023. These movements may reflect changes in actuarial assumptions or funding levels.
- Deferred income taxes
- Deferred income taxes declined steadily over the period, from US$231 million in 2019 to US$183 million in 2023, indicating possible changes in tax positions or timing differences.
- Other assets
- Other assets increased substantially from US$384 million in 2019 to a peak of US$543 million in 2022, then decreased to US$449 million by 2023, showing moderate volatility in miscellaneous asset categories.
- Other assets (total)
- Other non-current assets increased from US$1,139 million in 2019 to US$1,713 million in 2021, then decreased over the next two years to US$1,144 million by 2023, highlighting a buildup followed by a rundown in noncurrent miscellaneous assets.
- Non-current assets
- The total non-current assets showed mild growth from US$14,133 million in 2019 to US$14,784 million in 2021, followed by a decline to US$12,291 million by 2023. This downward trend in recent years could be due to asset sales, impairments, or depreciation exceeding additions.
- Total assets
- Total assets demonstrated consistent growth from US$17,564 million in 2019 to a peak of US$18,496 million in 2022, before a notable reduction to US$15,621 million in 2023. The decrease in 2023 suggests a consolidation or divestiture phase, or possibly adjustments related to impairments or capital reductions.