Common-Size Balance Sheet: Assets
Kellanova, common-size consolidated balance sheet: assets
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 notable trends in the composition of assets over the observed periods from the end of 2019 through the end of 2023.
- Cash and Cash Equivalents
- This component shows a slight decline from 2.26% to 1.57% of total assets by the end of 2021, followed by a gradual recovery to 1.75% in 2023. The initial drop may suggest decreased liquidity or cash usage for operational or investment purposes, while the subsequent increase indicates a moderate replenishment of liquid assets.
- Accounts Receivable, Net
- Accounts receivable decreased marginally from 8.97% in 2019 to 8.19% in 2021, but then increased consistently to 10.04% by 2023. This upward trend from 2021 could imply growth in sales on credit or a longer collection period, possibly affecting working capital management.
- Inventories
- Inventories remained relatively stable around 7% in the first three years but surged significantly to 9.56% in 2022 before declining to 7.96% in 2023. The spike in 2022 might indicate stockpiling or slower inventory turnover during that period, with a subsequent normalization in 2023.
- Other Current Assets
- Other current assets maintained a steady proportion near 1.3% until 2021, then increased notably to 2.07% in 2022 before dropping to 1.57% in 2023. This fluctuation may reflect timing differences in current asset recognition or changes in prepaid expenses or short-term receivables.
- Current Assets
- The overall current assets percentage slightly declined from 19.53% in 2019 to 18.67% in 2021, then increased markedly to 22.63% in 2022 before settling at 21.32% in 2023. This pattern aligns with movements observed in inventories and other current assets, indicating variations in short-term asset composition.
- Property, Net
- This asset category stayed relatively stable, fluctuating narrowly around 20.5%, suggesting no significant acquisitions or disposals of property assets relative to the total asset base.
- Operating Lease Right-of-Use Assets
- These assets increased steadily from 3.08% to 4.23% over the five-year period, indicating a progressive build-up or recognition of leased assets on the balance sheet, which could reflect changes in leasing strategy or accounting standards adoption.
- Goodwill
- Goodwill declined gradually from 33.37% in 2019 to 30.74% in 2022 but rebounded to 33.03% in 2023. The decline suggests potential impairments or disposals during the earlier years, while the recovery hints at new acquisitions or reassessments of intangible asset values.
- Other Intangibles, Net
- This category showed a gradual decrease from 14.67% to 12.36% over the analyzed period, which may point to amortization of existing intangible assets without equivalent replacement or acquisition.
- Investment in Unconsolidated Entities
- The share held relatively steady around 2.3% until a sharp decline to 1.18% in 2023, indicating possible divestment or reclassification of investments in affiliated companies.
- Pension
- Pension-related assets increased from 1.37% in 2019 to 2.46% in 2021 before declining to 1.29% in 2023, reflecting fluctuations in pension asset valuations or funding statuses over time.
- Deferred Income Taxes
- Deferred tax assets remained consistent around 1.3%, experiencing minor variability but no significant trend, indicating stable tax positions relative to total assets.
- Nonpension Post Retirement Benefits
- These assets rose from 1.61% in 2019 to a peak of 3.17% in 2021, then decreased to 1.99% by 2023, suggesting volatility in valuation or changes in post-retirement benefit obligations.
- Other Assets
- Other assets increased from 2.19% to 2.94% by 2022 and slightly declined to 2.87% in 2023, suggesting minor adjustments or reclassifications within miscellaneous asset categories.
- Other Assets (aggregated category)
- This grouping rose from 6.48% in 2019 to a high of 9.42% in 2021 before declining to 7.32% in 2023, reflecting volatility in non-specified long-term assets.
- Non-current Assets
- Non-current assets remained stable around 80%, with a slight dip in 2022 to 77.37% followed by a rebound to 78.68%, indicating the company's asset base is largely fixed and intangible assets, with relatively minor shifts over the period.
- Total Assets
- By definition, total assets constitute 100% each year, serving as the basis for all percentage comparisons.
Overall, the data indicates a stable asset structure dominated by non-current assets, with some fluctuations in current asset components and intangible assets. Notable trends include a temporary increase in inventories and other current assets in 2022, a gradual decrease and subsequent recovery of goodwill, steady growth in lease-related assets, and variability in pension and post-retirement related asset valuations. These observations suggest dynamic operational and investment activities influencing asset composition, alongside potential impacts from accounting policy changes and market conditions.