Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Kellanova, profitability 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).
- Gross Profit Margin
- The gross profit margin exhibited a fluctuating trend over the observed period, starting at 32.27% in 2019, rising to a peak of 34.33% in 2020, then declining to 30.13% by the end of 2022, before partially recovering to 32.64% in 2023. This indicates variability in the cost control relative to revenue generation, with some recovery in the latest period.
- Operating Profit Margin
- The operating profit margin showed improvement from 10.32% in 2019 to a high of 12.79% in 2020, followed by a gradual decline to 10.68% in 2022. In 2023, a modest rebound to 11.47% was observed. The pattern suggests operational efficiency strengthened initially but faced pressure in subsequent years, with partial recuperation recently.
- Net Profit Margin
- Net profit margin increased from 7.07% in 2019 to 10.49% in 2021, reflecting strong profitability growth. However, a sharp decline to 6.27% occurred in 2022, with a slight improvement to 7.25% in 2023. This volatility points to increased challenges at the bottom line during 2022 with some recovery thereafter.
- Return on Equity (ROE)
- ROE followed a positive trajectory from 34.95% in 2019 to approximately 40% in 2020 and 2021, indicating strong returns to shareholders. A significant drop to 24.36% occurred in 2022, with an improvement to 29.95% in 2023. This trend highlights noteworthy fluctuations in shareholder value generation over the period.
- Return on Assets (ROA)
- ROA increased steadily from 5.47% in 2019 to a peak of 8.19% in 2021, signaling improved asset efficiency. This was followed by a decline to 5.19% in 2022 and a slight recovery to 6.09% in 2023. The asset utilization efficiency experienced a downturn in 2022 with partial restoration more recently.
Return on Sales
Return on Investment
Gross Profit Margin
Kellanova, gross profit margin calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
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).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibited a general upward trend from 2019 through 2022, increasing from 13,578 million US dollars in 2019 to a peak of 15,315 million US dollars in 2022. However, in 2023, net sales declined significantly to 13,122 million US dollars, marking a notable decrease compared to the previous year.
- Gross Profit
- Gross profit values followed a different path compared to net sales. Starting at 4,381 million US dollars in 2019, gross profit increased to 4,727 million in 2020. Subsequently, it fluctuated with a decrease in 2021 to 4,560 million, a marginal rise in 2022 to 4,615 million, and a further decline in 2023 to 4,283 million. The overall pattern indicates moderate volatility with a general downward trend in the most recent year.
- Gross Profit Margin
- The gross profit margin showed variability across the period. It improved from 32.27% in 2019 to 34.33% in 2020, suggesting enhanced cost efficiency or pricing power during that year. Afterward, it diminished to 32.16% in 2021, declined further to 30.13% in 2022, and then recovered somewhat to 32.64% in 2023. This reflects fluctuations in profitability relative to sales, with a notable drop in 2022 but partial recovery in 2023.
- Overall Insights
- The financial data indicates that while net sales increased steadily until 2022, the subsequent year saw a significant decline, which negatively impacted gross profit. The gross profit margin exhibited an initial improvement but faced downward pressure in the following years, indicating rising costs or margin compression. The partial recovery in gross profit margin in 2023, despite lower sales and gross profit amounts, may point to improved operational efficiency or cost control measures implemented during that period.
Operating Profit Margin
Kellanova, operating profit margin calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating profit | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | ||||||
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).
1 2023 Calculation
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Profit
- Operating profit exhibited an upward trend from 2019 to 2020, increasing from 1,401 million US dollars to 1,761 million US dollars. In 2021, it remained relatively stable at 1,752 million US dollars before declining in 2022 to 1,635 million US dollars. The downward trend continued into 2023, with operating profit decreasing further to 1,505 million US dollars.
- Net Sales
- Net sales showed a gradual increase between 2019 and 2022, rising from 13,578 million US dollars in 2019 to 15,315 million US dollars in 2022. However, in 2023, net sales experienced a considerable decline, dropping to 13,122 million US dollars, which is below the 2022 figure and closer to the 2019 and 2020 levels.
- Operating Profit Margin
- The operating profit margin followed a pattern of growth and decline over the period. It increased notably from 10.32% in 2019 to 12.79% in 2020, followed by a slight decline to 12.35% in 2021. The margin then decreased more sharply in 2022 to 10.68%, but improved moderately in 2023 to 11.47%, indicating a partial recovery in profitability relative to sales.
- Overall Analysis
- The data indicates that operating profit and net sales both peaked around 2020-2022 before declining in 2023. Despite lower net sales in 2023 compared to previous years, the operating profit margin improved in 2023, which suggests some operational efficiency or cost control measures were effective. The decline in absolute operating profit in 2023 alongside decreased sales points to potential challenges such as price pressures or increased costs that impacted overall profitability.
Net Profit Margin
Kellanova, net profit margin calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Kellanova | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Staples | ||||||
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).
1 2023 Calculation
Net profit margin = 100 × Net income attributable to Kellanova ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Kellanova
- Net income demonstrated an upward trajectory from 2019 to 2021, rising from 960 million US dollars to a peak of 1,488 million US dollars. However, there was a notable decline in 2022, with net income decreasing to 960 million US dollars, and a slight further decrease to 951 million US dollars in 2023, indicating challenges in maintaining previous profit levels.
- Net Sales
- Net sales showed a generally increasing trend from 13,578 million US dollars in 2019 to a peak of 15,315 million US dollars in 2022. Despite the growth until 2022, net sales experienced a significant decline in 2023, dropping to 13,122 million US dollars, which may correlate with the observed decrease in net income during the same period.
- Net Profit Margin
- The net profit margin improved steadily from 7.07% in 2019 to a maximum of 10.49% in 2021, indicating enhanced profitability efficiency. However, a sharp fall occurred in 2022 to 6.27%, with a modest recovery to 7.25% in 2023. This fluctuation suggests variability in operational efficiency or cost management impacting profitability despite the sales trend.
- Overall Financial Trends
- The data indicate strong financial performance with growing net sales and profitability up to 2021. The subsequent years saw declines in key financial metrics, including net income, sales, and profit margin, reflecting a potential shift in market conditions or internal challenges affecting financial stability and profitability. The recovery efforts in profit margin in 2023 appear limited, while sales and net income remain subdued relative to peak levels.
Return on Equity (ROE)
Kellanova, ROE calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Kellanova | ||||||
| Total Kellanova equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| ROE, Industry | ||||||
| Consumer Staples | ||||||
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).
1 2023 Calculation
ROE = 100 × Net income attributable to Kellanova ÷ Total Kellanova equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Kellanova
- The net income demonstrated a rising trend from 2019 to 2021, increasing from 960 million US dollars to a peak of 1488 million US dollars. However, there was a notable decline in 2022, where net income dropped to 960 million US dollars, and it remained almost steady in 2023 with a slight decrease to 951 million US dollars.
- Total Kellanova Equity
- Total equity showed consistent growth from 2019 through 2022, rising from 2747 million US dollars to 3941 million US dollars. In 2023, this trend reversed with a decrease to 3175 million US dollars, indicating a contraction in equity after several years of expansion.
- Return on Equity (ROE)
- The return on equity initially increased from 34.95% in 2019 to a high of approximately 40.2% in 2020, maintaining a similar level of 40% in 2021. Subsequently, there was a significant decline in 2022 to 24.36%. In 2023, ROE showed signs of recovery, rising to nearly 30%, but it remained below the peak levels observed in the earlier years.
- Overall Patterns and Insights
- The data reveals a period of growth for both net income and equity up to 2021 or 2022, followed by a contraction in 2023. Net income and ROE peaked in 2021 but both experienced a notable decline afterward. Equity following a similar declining pattern in the last year may suggest underlying challenges impacting the company’s financial position. The drop in ROE despite relatively stable net income between 2022 and 2023 can be influenced by the decrease in equity. The trends suggest a cautious outlook with some recovery signs appearing in 2023.
Return on Assets (ROA)
Kellanova, ROA calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Kellanova | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| ROA, Industry | ||||||
| Consumer Staples | ||||||
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).
1 2023 Calculation
ROA = 100 × Net income attributable to Kellanova ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reflects several notable trends over the period from 2019 to 2023. Net income attributable to the company demonstrates an overall growth trend from 2019 through 2021, increasing from 960 million US dollars to a peak of 1,488 million US dollars. However, a decline follows in the subsequent years, with net income dropping to 960 million in 2022 and slightly decreasing further to 951 million in 2023.
Total assets reveal a different pattern. The asset base experiences a gradual increase from 17,564 million US dollars in 2019 to a maximum of 18,496 million US dollars in 2022. Nonetheless, 2023 shows a significant contraction, with total assets falling to 15,621 million US dollars.
The return on assets (ROA) percentage exhibits variability that aligns partially with the net income trend. ROA improves steadily from 5.47% in 2019 to a maximum of 8.19% in 2021, indicating improved efficiency or profitability relative to assets during this period. Thereafter, ROA declines to 5.19% in 2022, before rebounding to 6.09% in 2023, suggesting some recovery in return efficiency despite the reduction in total assets.
Overall, the company experienced growth in profitability and asset size up to 2021-2022, followed by a phase of contraction in net income and assets in the last year. The return on assets suggests fluctuating operational efficiency, peaking in 2021 and showing partial recovery by 2023. These patterns may indicate cyclical business effects, strategic asset reallocation, or changing market conditions impacting financial performance during this timeframe.