Stock Analysis on Net

Kellanova (NYSE:K)

This company has been moved to the archive! The financial data has not been updated since August 1, 2024.

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Kellanova, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Adjustment to Total Assets
Total assets (as reported) 15,621 18,496 18,178 17,996 17,564
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 15,621 18,496 18,178 17,996 17,564
Adjustment to Total Debt
Total debt (as reported) 5,873 6,564 7,111 7,475 7,922
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current operating lease liabilities 121 121 116 117 114
Add: Non-current operating lease liabilities 532 486 502 520 433
Total debt (adjusted) 6,526 7,171 7,729 8,112 8,469

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, 2 Equal to total present value of future operating lease payments.


Kellanova, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Kellanova, adjusted financial ratios

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Total Asset Turnover1
Reported total asset turnover 0.84 0.83 0.78 0.77 0.77
Adjusted total asset turnover 0.84 0.83 0.78 0.77 0.77
Debt to Equity2
Reported debt to equity 1.85 1.67 1.91 2.40 2.88
Adjusted debt to equity 2.06 1.82 2.08 2.61 3.08
Return on Assets3 (ROA)
Reported ROA 6.09% 5.19% 8.19% 6.95% 5.47%
Adjusted ROA 6.09% 5.19% 8.19% 6.95% 5.47%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kellanova adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Kellanova adjusted debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Kellanova adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Kellanova, Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales 13,122 15,315 14,181 13,770 13,578
Total assets 15,621 18,496 18,178 17,996 17,564
Activity Ratio
Total asset turnover1 0.84 0.83 0.78 0.77 0.77
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales 13,122 15,315 14,181 13,770 13,578
Adjusted total assets 15,621 18,496 18,178 17,996 17,564
Activity Ratio
Adjusted total asset turnover2 0.84 0.83 0.78 0.77 0.77

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 Total asset turnover = Net sales ÷ Total assets
= 13,122 ÷ 15,621 = 0.84

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 13,122 ÷ 15,621 = 0.84

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kellanova adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 5,873 6,564 7,111 7,475 7,922
Total Kellanova equity 3,175 3,941 3,720 3,112 2,747
Solvency Ratio
Debt to equity1 1.85 1.67 1.91 2.40 2.88
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 6,526 7,171 7,729 8,112 8,469
Total Kellanova equity 3,175 3,941 3,720 3,112 2,747
Solvency Ratio
Adjusted debt to equity2 2.06 1.82 2.08 2.61 3.08

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 Debt to equity = Total debt ÷ Total Kellanova equity
= 5,873 ÷ 3,175 = 1.85

2 Adjusted debt to equity = Adjusted total debt ÷ Total Kellanova equity
= 6,526 ÷ 3,175 = 2.06

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Kellanova adjusted debt-to-equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kellanova 951 960 1,488 1,251 960
Total assets 15,621 18,496 18,178 17,996 17,564
Profitability Ratio
ROA1 6.09% 5.19% 8.19% 6.95% 5.47%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Kellanova 951 960 1,488 1,251 960
Adjusted total assets 15,621 18,496 18,178 17,996 17,564
Profitability Ratio
Adjusted ROA2 6.09% 5.19% 8.19% 6.95% 5.47%

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 ROA = 100 × Net income attributable to Kellanova ÷ Total assets
= 100 × 951 ÷ 15,621 = 6.09%

2 Adjusted ROA = 100 × Net income attributable to Kellanova ÷ Adjusted total assets
= 100 × 951 ÷ 15,621 = 6.09%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Kellanova adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.