Analysis of Debt
Total Debt (Carrying Amount)
Kellanova, balance sheet: debt
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).
A consistent downward trend in total debt is observed over the five-year period ending December 30, 2023. Total notes payable and long-term debt decreased from 7,922 million US dollars in 2019 to 5,873 million US dollars in 2023, representing a total reduction of approximately 25.8% in the carrying amount of debt.
- Long-Term Debt Trajectory
- The primary driver of the overall debt reduction is the steady decline in long-term debt, excluding current maturities. This figure decreased every year, moving from 7,195 million US dollars in 2019 to 5,089 million US dollars by the end of 2023. This suggests a sustained effort toward deleveraging the balance sheet through repayment or refinancing of long-term obligations.
- Short-Term Obligations and Liquidity
- Current maturities of long-term debt exhibited a gradual increase from 620 million US dollars in 2019 to a peak of 780 million US dollars in 2022, before declining to 663 million US dollars in 2023. This indicates a fluctuating schedule of upcoming debt repayments.
- Notes Payable Volatility
- Notes payable remained relatively stable between 2019 and 2021, ranging from 102 million to 137 million US dollars. A significant spike occurred in 2022, where the amount rose to 467 million US dollars, followed by a sharp contraction to 121 million US dollars in 2023, returning the balance to near-historical levels.
The overall financial profile indicates a strategic reduction in total leverage. The decline in long-term debt outweighs the temporary volatility observed in notes payable and current maturities, resulting in a strengthened debt position by the end of the analyzed period.
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Total Debt (Fair Value)
| Dec 30, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Notes payable | 121) |
| Current maturities of long-term debt | 663) |
| Long-term debt, excluding current maturities | 5,000) |
| Total notes payable and long-term debt (fair value) | 5,784) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2023-12-30).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on Notes: 3.06%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.06% | 5,752) | 176) | |
| Total | 5,752) | 176) | |
| 3.06% | |||
Based on: 10-K (reporting date: 2023-12-30).
1 US$ in millions
2 Weighted-average interest rate = 100 × 176 ÷ 5,752 = 3.06%