Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
Kellanova, solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
- Debt to Equity Ratio
- The debt to equity ratio demonstrates a general declining trend over the observed periods. Beginning at 3.67 in March 2019, it decreases relatively steadily to a low of 1.56 by October 2022. Following this low point, there is a moderate increase, reaching 1.88 in March 2024, before slightly declining again to 1.77 by June 2024. This pattern suggests a significant reduction in reliance on debt financing relative to equity over the long term, with a minor recent increase in leverage.
- Debt to Equity Ratio (Including Operating Lease Liability)
- This modified ratio follows a similar trajectory to the standard debt to equity ratio but starts and remains at slightly higher values, reflecting the additional liability from operating leases. It decreases from 3.85 in March 2019 to 1.7 in October 2022, then rises to 2.09 by March 2024 before tapering to 1.97 in the most recent period. The inclusion of lease liabilities indicates a somewhat higher leverage position but maintains a comparable downward trend with minor late period volatility.
- Debt to Capital Ratio
- The debt to capital ratio shows a consistent decline, starting from 0.79 in March 2019 and dropping to 0.61 in October 2022. After this point, there is a slight upward movement, peaking near 0.65 in March and June 2024, before a minor decline to 0.64 in June 2024. Overall, this ratio reflects a decreasing portion of debt within the company’s capital structure over most of the timeline, with a modest rebound towards the end.
- Debt to Capital Ratio (Including Operating Lease Liability)
- When operating leases are factored in, the debt to capital ratio again shows a similar pattern, beginning at 0.79 in March 2019, decreasing steadily to a low of 0.63 in October 2022, followed by a slight increase to 0.68 in March 2024 and a decrease thereafter to 0.66 in June 2024. The adjustments for lease liabilities imply somewhat higher leverage, but the long-term declining trend remains consistent.
- Debt to Assets Ratio
- The debt to assets ratio reveals a moderate downward trend over the reporting periods. Starting at 0.50 in March 2019, it decreases to 0.35 by October 2022 before showing a minor upward adjustment toward 0.39 in March 2024, then slightly declining to 0.38 in June 2024. This suggests gradual debt reduction relative to total assets, with recent periods indicating stabilization or mild increase.
- Debt to Assets Ratio (Including Operating Lease Liability)
- Including operating lease liabilities, the debt to assets ratio starts at 0.53 in March 2019 and declines to 0.38 by October 2022. A subsequent upward trend is observed, reaching 0.43 in March 2024, with a mild decline to 0.42 in June 2024. The inclusion of leasing obligations elevates this ratio but preserves an overall downward trend with modest late period rises.
- Financial Leverage
- Financial leverage shows a notable decreasing trend from 7.29 in March 2019 to a low of 4.44 in October 2022, indicative of enhanced equity financing or asset growth relative to debt. Post this period, the leverage ratio rises again, reaching 4.92 by March 2024, then decreases slightly to 4.63 in June 2024. This exhibits a reduction in gearing over most periods with some rebound in recent quarters.
- Interest Coverage Ratio
- The interest coverage ratio data begins from December 2019 with a value of 5.57, increasing steadily through 2021, peaking at 10.54 in December 2021, suggesting robust earnings relative to interest expenses during this period. Afterward, the ratio declines to 4.07 by December 2023, with slight improvements to 4.60 by June 2024. The pattern indicates strengthened capacity to service interest early on, followed by decreasing coverage in the latest periods, potentially reflecting rising interest costs or reduced earnings.
Debt Ratios
Coverage Ratios
Debt to Equity
Kellanova, debt to equity calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total Kellanova equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
1 Q2 2024 Calculation
Debt to equity = Total debt ÷ Total Kellanova equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows a fluctuating trend over the periods analyzed. Initially, it decreased from $9,297 million to $7,874 million between March and September 2019, followed by a slight increase towards December 2019. During 2020, total debt displayed volatility but generally decreased, with a notable dip to $6,564 million by the end of December 2022. Towards the latest quarters in 2023 and 2024, total debt again fluctuates, with values ranging between approximately $5,863 million and $7,076 million, indicating ongoing adjustments in debt levels.
- Total Equity
- Total equity exhibited a gradual upward trend from $2,533 million in March 2019 to a peak of $4,283 million in October 2022. After this peak, equity decreased sharply to $3,175 million by March 2024 before marginally recovering to $3,307 million by June 2024. This pattern reflects an initial period of equity growth, followed by a contraction in the most recent quarters.
- Debt to Equity Ratio
- The debt to equity ratio experienced a substantial decline from a high of 3.67 in March 2019 to a low of 1.56 in October 2022, indicating a progressive reduction in leverage relative to equity over this period. After reaching the low point, the ratio trended upward to 1.88 by March 2024 but decreased slightly to 1.77 by June 2024. This final movement suggests a modest increase in leverage recently, although it remains significantly below early periods.
- Summary of Trends and Insights
- Overall, the data indicates that the company initially focused on reducing leverage as total debt decreased and equity increased steadily over several years. The debt-to-equity ratio improvement suggests strengthening of the balance sheet with less reliance on debt relative to shareholder equity. However, recent quarters demonstrate some reversal in these trends, with equity declining notably and debt showing some volatility, leading to a moderate increase in leverage. These fluctuations could reflect strategic financial decisions, operational challenges, or changes in market conditions affecting the company's capital structure.
Debt to Equity (including Operating Lease Liability)
Kellanova, debt to equity (including operating lease liability) calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Current operating lease liabilities | |||||||||||||||||||||||||||||
| Non-current operating lease liabilities | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Total Kellanova equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
1 Q2 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Kellanova equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in both debt and equity levels over the examined periods, impacting the company’s leverage ratios accordingly.
- Total debt (including operating lease liability)
- The total debt exhibited a decreasing trend from early 2019 through the end of 2020, dropping from approximately 9,744 million USD in March 2019 to around 8,112 million USD in December 2020. Throughout 2021 and into early 2022, debt levels stabilized with minor fluctuations hovering near 7,700 to 8,300 million USD. From mid-2022 onwards, a further gradual decline is evident, reaching approximately 6,501 million USD by the middle of 2024. This progression suggests a concerted effort to reduce liabilities over the longer term.
- Total Kellanova equity
- Equity values generally rose from March 2019, when equity stood at about 2,533 million USD, reaching a peak near 4,283 million USD in October 2022. However, following this peak, a decline is observed, dropping to roughly 3,175 million USD by March 2024. A slight recovery ensues in the subsequent quarters, with equity increasing again to approximately 3,307 million USD by June 2024. This trend indicates growth in net assets initially, followed by some reversal possibly tied to external or operational factors affecting shareholder value.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio fell consistently from a high of 3.85 in March 2019 to a low near 1.7 in October 2022, reflecting improved leverage conditions as debt decreased and equity increased. After this point, the ratio began to rise again, reaching levels slightly above 2.0 by mid-2024. This increase signals a modest re-leveraging or a faster decline in equity relative to debt during the latter periods.
Overall, the data portrays a period of deleveraging and strengthening equity up to late 2022, followed by a phase of increased leverage and equity contraction. These dynamics are critical for understanding capital structure changes and potential risk exposure moving forward.
Debt to Capital
Kellanova, debt to capital calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total Kellanova equity | |||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
1 Q2 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several key trends related to debt and capital structure over the observed periods.
- Total Debt
- Total debt exhibited a general declining trend from late 2018 through mid-2024. Starting at approximately US$9.3 billion in the first quarter of 2019, it peaked briefly in mid-2019 before declining steadily, reaching levels around US$5.8 billion in the first half of 2024. This decline represents a significant reduction in total debt obligations over the six-year period, suggesting an effort to deleverage the balance sheet or repay liabilities.
- Total Capital
- Total capital showed moderate fluctuations but a less pronounced downward trajectory compared to total debt. Initially above US$11.8 billion in early 2019, capital levels hovered near US$11 billion through much of the early periods before dipping closer to US$9 to US$9.2 billion in 2024. The relative stability compared to debt reflects managed adjustments in equity and debt financing components.
- Debt to Capital Ratio
- The ratio of debt to total capital consistently declined from 0.79 in the first quarter of 2019 to a low near 0.61-0.62 around late 2022, indicating an improving capital structure with reduced reliance on debt financing. However, from 2023 into mid-2024, this ratio stabilized between 0.63 and 0.65, suggesting a settling into a more balanced leverage position rather than continued deleveraging.
In summary, the overall trends indicate a strategic reduction in total debt over time while maintaining relatively stable capital levels, resulting in a gradual decrease in financial leverage as shown by the debt to capital ratio. The stabilization of this leverage metric in recent quarters may reflect a targeted capital structure policy balancing risk and growth financing needs.
Debt to Capital (including Operating Lease Liability)
Kellanova, debt to capital (including operating lease liability) calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Current operating lease liabilities | |||||||||||||||||||||||||||||
| Non-current operating lease liabilities | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Total Kellanova equity | |||||||||||||||||||||||||||||
| Total capital (including operating lease liability) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
1 Q2 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's debt and capital structure over the observed period.
- Total Debt (including operating lease liability)
- The total debt level exhibited a general decline from early 2019 through mid-2024. Starting at approximately $9,744 million in March 2019, debt experienced fluctuations but trended downward overall, reaching a low near $6,501 million by December 2023. There was a slight increase toward the mid-2024 period, with debt at $6,593 million and $6,501 million in June and latest reported quarters respectively. This decline suggests efforts in reducing leverage or debt repayments over time.
- Total Capital (including operating lease liability)
- Total capital followed a similar but less volatile pattern compared to debt. Beginning around $12,277 million in March 2019, total capital increased slightly toward 2020, then generally declined, settling close to $9,745 million by June 2024. The downward movement in capital over time is consistent with the reduction in debt, indicating an overall contraction in the capital base or shifts in financing structure.
- Debt to Capital Ratio (including operating lease liability)
- The leverage ratio showed a meaningful gradual improvement, decreasing from 0.79 in early 2019 to levels around 0.66 by mid-2024. This downward trend indicates the company has been moderately reducing its reliance on debt financing relative to total capital. Although minor fluctuations occurred, the ratio's movement reflects a strategic lowering of financial risk and possibly strengthening of the balance sheet.
In summary, the data points to a company progressively lowering its total debt and modestly contracting total capital, resulting in a consistent decrease in its debt to capital ratio. These trends suggest a focus on deleveraging and potentially improving financial stability over the six-year period.
Debt to Assets
Kellanova, debt to assets calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
1 Q2 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows a general declining trend over the period analyzed. Beginning around 9,297 million USD in March 2019, the figure fluctuates slightly but decreases overall, reaching 5,863 million USD by June 2024. Notable reductions occur after December 2020 and continue through mid-2024, indicating efforts to reduce financial leverage or repay borrowings over time. Small fluctuations are observed, but the trend is broadly downward.
- Total Assets
- Total assets remain relatively stable with some volatility throughout the timeframe. Starting at approximately 18,465 million USD in March 2019, assets peaked near 19,016 million USD by October 2022 before declining to around 15,299 million USD in June 2024. This decrease toward the end of the period suggests possible asset disposals or depreciation outweighing additions in recent quarters.
- Debt to Assets Ratio
- The debt to assets ratio declines from 0.50 in early 2019 to around 0.38 by mid-2024. This indicates an improvement in the company's financial structure, with debt levels decreasing relative to asset base. The ratio saw a steady decline until late 2021, followed by minor fluctuations but remained below 0.40 thereafter, reflecting a more conservative leverage position in the most recent periods.
- Summary
- Overall, the data reflects a company that has consistently managed to reduce its total debt while maintaining a relatively stable asset base for most of the period. The reduction in debt combined with the modest decline in total assets results in an improved debt to assets ratio, suggesting enhanced financial stability and lower risk associated with financial leverage. Toward the end of the horizon analyzed, the declines in both total assets and total debt are more pronounced, which may warrant further investigation into underlying causes such as strategic asset sales or changes in financing strategies.
Debt to Assets (including Operating Lease Liability)
Kellanova, debt to assets (including operating lease liability) calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Current operating lease liabilities | |||||||||||||||||||||||||||||
| Non-current operating lease liabilities | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
1 Q2 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt level shows a general decline over the observed periods, decreasing from 9,744 million USD in March 2019 to 6,501 million USD by June 2024. There are some fluctuations within this downward trend, for example, a notable drop occurred between December 2023 (7,674 million USD) and March 2024 (6,526 million USD), suggesting significant debt repayments or restructuring activities during this timeframe. The gradual decrease may indicate ongoing efforts to reduce leverage or improve financial stability.
- Total Assets
- Total assets exhibit a generally stable pattern with moderate fluctuations throughout the period. Starting at 18,465 million USD in March 2019, the asset base slightly increased and experienced minor oscillations but culminated in a decline to approximately 15,299 million USD in June 2024. The decline in asset base towards the end of the period could suggest asset disposals, depreciation, or strategic realignments affecting the balance sheet size.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The ratio of total debt to total assets indicates a consistent downward trend from 0.53 in March 2019 to a low of 0.38 by October 2022, reflecting an improving leverage position. This improvement aligns with the falling debt levels and relatively stable asset base in the preceding years. After October 2022, a slight increase in the ratio occurs, reaching around 0.42 by June 2024. This rebound could be attributed to the more rapid decline in assets relative to debt during this latter period, implying a mild increase in financial risk or leverage.
- Overall Financial Trend Summary
- Over the analyzed quarterly periods, there is evidence of a deliberate reduction in debt which has improved leverage ratios until late 2022. Nevertheless, in recent quarters, a contraction in total assets has somewhat offset these gains, resulting in a modest increase in leverage ratios. The financial data suggests the company has been focusing on debt management and possibly asset optimization strategies, but recent asset decreases highlight potential challenges or strategic shifts impacting balance sheet composition. Continuous monitoring will be important to assess whether the recent increase in leverage trends stabilizes or escalates.
Financial Leverage
Kellanova, financial leverage calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Total Kellanova equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
1 Q2 2024 Calculation
Financial leverage = Total assets ÷ Total Kellanova equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends in the overall asset base, equity levels, and financial leverage over the examined periods.
- Total Assets
- The total assets exhibited fluctuations throughout the periods. Starting at approximately $18.47 billion in March 2019, the assets showed a slight overall increase, peaking near $19.02 billion in October 2022. However, from the peak, a gradual decline followed, resulting in a significant drop to about $15.30 billion by June 2024. This indicates a recent contraction in the asset base after a period of relative stability and growth.
- Total Kellanova Equity
- Equity increased steadily from $2.53 billion in March 2019, reaching a high of approximately $4.28 billion in October 2022. This reflects a period of strengthening shareholder value and capital base expansion. However, after the October 2022 peak, equity values declined to around $3.15 billion by July 2024, suggesting a reduction in net assets attributable to shareholders in the latest quarters.
- Financial Leverage
- The financial leverage ratio, calculated as total assets divided by total equity, showed a declining trend over the years. It started at a relatively high level of 7.29 in early 2019 and steadily decreased to around 4.44 by October 2022, indicating a reduction in reliance on debt relative to equity. After this trough, a slight increase occurred, with the ratio rising to approximately 4.92 by March 2024, followed by a modest decline to 4.63 in June 2024. This suggests a recent tendency towards increased leverage, albeit still lower than at the start of the period.
In summary, the data highlights an initial phase characterized by growth in both total assets and equity, accompanied by a decreasing financial leverage ratio implying improved capital structure stability. This was followed by a period from late 2022 onward marked by declines in both assets and equity, alongside a rise in leverage, which may indicate emerging financial pressures or strategic shifts affecting the balance sheet strength and risk profile.
Interest Coverage
Kellanova, interest coverage calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to Kellanova | |||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||||||||
| Less: Income from discontinued operations, net of taxes | |||||||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).
1 Q2 2024 Calculation
Interest coverage
= (EBITQ2 2024
+ EBITQ1 2024
+ EBITQ4 2023
+ EBITQ3 2023)
÷ (Interest expenseQ2 2024
+ Interest expenseQ1 2024
+ Interest expenseQ4 2023
+ Interest expenseQ3 2023)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The earnings before interest and tax (EBIT) for the observed periods exhibit considerable volatility with both growth and decline patterns. Starting at 431 million US dollars in March 2019, EBIT experienced modest fluctuations through the year, peaking at 532 million in June 2020. Following this, a general downward trajectory is noticeable, culminating in a significant negative EBIT value of -70 million in December 2022, indicating a period of operational difficulty. Subsequently, a recovery trend is evident with EBIT rising again towards mid-2024, reaching 527 million US dollars by June 2024.
The interest expense across the periods remains relatively stable, fluctuating between 39 million and 85 million US dollars without a clear upward or downward trend. The lowest interest expense is recorded in October 2022 at 39 million, while the highest expense appears in December 2020 at 85 million. This stability suggests that the company maintained consistent financing costs throughout the period despite EBIT volatility.
The interest coverage ratio, calculated as EBIT divided by interest expense, shows a strong upward trend from the earliest available data, rising from 5.57 times to a peak of 10.54 times in December 2022, indicating an improved ability to cover interest obligations during most of the observed period. However, this ratio sharply declines after December 2022, reaching lows near 4.07 times in December 2023 before slightly improving to around 4.6 times by June 2024. This decline corresponds with the notable drop and subsequent recovery in EBIT, signaling fluctuating operating profitability affecting the company’s interest coverage capability.
- EBIT Trend
- Volatile with initial growth until mid-2020, a sharp decline culminating in negative EBIT in late 2022, followed by a recovery through mid-2024.
- Interest Expense
- Relatively stable throughout with minor fluctuations, no clear increasing or decreasing trend.
- Interest Coverage Ratio
- Overall improvement up to late 2022, indicating strengthening profitability relative to interest cost, then a pronounced decline correlating with EBIT downturn, partially recovering by mid-2024.
- Insights
- The period around late 2022 marks a financial strain period, where a negative EBIT and reduced interest coverage ratio are evident. The subsequent recovery suggests operational improvements or cost management initiatives post this downturn. Consistent interest expense levels indicate steady financing conditions without significant refinancing or debt adjustment events during the periods analyzed.