Name: Kellanova (NYSE:K) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Kellanova, consolidated cash flow statement

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Net income	964)	962)	1,495)	1,264)	977)
Depreciation and amortization	419)	478)	467)	479)	484)
Postretirement benefit plan expense (benefit)	53)	240)	(392)	(77)	(89)
Deferred income taxes	(21)	(46)	125)	69)	47)
Stock compensation	95)	96)	68)	76)	56)
Loss on Russia Divestiture	113)	—)	—)	—)	—)
Other	40)	(42)	(44)	(21)	96)
Tax payment related to divestitures	—)	—)	—)	—)	(255)
Postretirement benefit plan contributions	(42)	(23)	(20)	(32)	(28)
Trade receivables	(42)	(257)	(9)	75)	(145)
Inventories	139)	(411)	(135)	(54)	2)
Accounts payable	(340)	411)	194)	(9)	(9)
All other current assets and liabilities	267)	243)	(48)	216)	40)
Changes in operating assets and liabilities, net of acquisitions and divestitures	24)	(14)	2)	228)	(112)
Adjustments to reconcile net income to operating cash flows	681)	689)	206)	722)	199)
Net cash provided by operating activities	1,645)	1,651)	1,701)	1,986)	1,176)
Additions to properties	(677)	(488)	(553)	(505)	(586)
Issuance of notes receivable	(4)	(22)	(28)	(19)	(30)
Repayments from notes receivable	—)	10)	28)	14)	5)
Purchases of marketable securities	—)	—)	—)	(250)	—)
Sales of marketable securities	—)	—)	—)	250)	—)
Settlement of net investment hedges	68)	37)	19)	—)	—)
Investments in unconsolidated entities	—)	—)	(10)	—)	—)
Purchases of available for sale securities	(15)	(17)	(61)	(81)	(18)
Sales of available for sale securities	64)	19)	72)	19)	83)
Other	2)	13)	5)	(13)	1,320)
Net cash (used in) provided by investing activities	(562)	(448)	(528)	(585)	774)
Net increase (reduction) of notes payable, with maturities less than or equal to 90 days	(356)	337)	(27)	(16)	(18)
Issuances of notes payable, with maturities greater than 90 days	35)	28)	73)	44)	62)
Reductions of notes payable, with maturities greater than 90 days	(25)	(35)	(63)	(34)	(69)
Issuances of long-term debt	404)	39)	361)	557)	80)
Reductions of long-term debt	(780)	(648)	(650)	(1,229)	(1,009)
Debt redemption costs	—)	—)	—)	(20)	(17)
Net issuances of common stock	60)	277)	63)	112)	64)
Common stock repurchases	(170)	(300)	(240)	—)	(220)
Cash dividends	(800)	(797)	(788)	(782)	(769)
Proceeds received from debt issued and retained by WK Kellogg Co	663)	—)	—)	—)	—)
Cash retained by WK Kellogg Co at separation	(78)	—)	—)	—)	—)
Other	(63)	18)	(35)	(20)	(9)
Net cash used in financing activities	(1,110)	(1,081)	(1,306)	(1,388)	(1,905)
Effect of exchange rate changes on cash and cash equivalents	2)	(109)	(16)	25)	31)
Increase (decrease) in cash and cash equivalents	(25)	13)	(149)	38)	76)
Cash and cash equivalents at beginning of period	299)	286)	435)	397)	321)
Cash and cash equivalents at end of period	274)	299)	286)	435)	397)

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 cash flows from 2019 to 2023 reveals a company with strong and consistent operational cash generation, which is utilized primarily for capital expenditures, debt reduction, and shareholder returns. While net income experienced volatility—peaking in 2021 at 1,495 million USD before stabilizing near 964 million USD by 2023—the net cash provided by operating activities remained robust, consistently exceeding net income. This indicates a high quality of earnings, supported by significant non-cash adjustments such as depreciation and amortization.

Operating Cash Flow Trends: Net cash provided by operating activities peaked in 2020 at 1,986 million USD and has since maintained a range between 1,645 million USD and 1,701 million USD. A notable pattern is observed in the reconciliation adjustments; depreciation and amortization remained relatively stable around 419 to 484 million USD annually. Working capital fluctuations were more pronounced in recent years, particularly with a significant increase in accounts payable in 2022 (411 million USD) followed by a substantial decrease in 2023 (-340 million USD).
Investing Activities and Capital Expenditure: Investing activities have been characterized by consistent outflows for property additions, reflecting ongoing capital investment. Spending on properties increased to its five-year high of 677 million USD in 2023. Aside from a significant cash inflow in 2019, net cash from investing activities remained negative throughout the period, typically ranging from 448 million USD to 585 million USD in outflows, underscoring a commitment to maintaining and upgrading physical assets.
Financing Activities and Capital Allocation: Financing activities show a consistent net outflow, driven by a disciplined approach to shareholder distributions and debt management. Cash dividends have been a primary use of funds, rising steadily from 769 million USD in 2019 to 800 million USD in 2023. The company also engaged in regular reductions of long-term debt, with the largest repayment occurring in 2020 (1,229 million USD). In 2023, financing activities were notably impacted by the separation of WK Kellogg Co, which resulted in proceeds of 663 million USD from issued debt retained by the separated entity.
Liquidity and Cash Position: The end-of-period cash and cash equivalents have remained relatively stable but trended slightly downward, moving from 397 million USD in 2019 to 274 million USD in 2023. This stability suggests that the company effectively balances its operational inflows against its aggressive capital return and investment strategies, maintaining a lean cash balance relative to its total cash flow volume.

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