Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Kellanova, long-term (investment) activity 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).
An analysis of long-term activity ratios indicates a general improvement in asset utilization efficiency from 2019 through 2023, characterized by a strengthening capacity to generate revenue from the company's investment base.
- Fixed Asset Utilization
- The net fixed asset turnover ratio demonstrates a positive trajectory, increasing from 3.76 in 2019 to 4.09 by the end of 2023. After a period of relative stability between 2020 and 2021, a notable acceleration in efficiency occurred in 2022 and 2023. When including operating lease right-of-use assets, the ratio remains lower but follows a similar trend, peaking at 3.48 in 2022 before a slight moderation to 3.39 in 2023. This suggests that the core fixed asset base is becoming more productive in supporting revenue growth.
- Total Asset Efficiency
- Total asset turnover exhibits a consistent and steady upward trend over the five-year period. The ratio rose incrementally from 0.77 in 2019 and 2020 to 0.84 in 2023. This gradual climb reflects a systematic improvement in the overall efficiency with which the entire asset portfolio is deployed to generate sales.
- Equity Productivity
- Equity turnover experienced significant volatility compared to asset-based ratios. A downward trend was observed between 2019 and 2021, with the ratio dropping from 4.94 to 3.81, indicating that equity grew at a faster rate than revenues during this interval. However, a recovery phase began in 2022, with the ratio increasing to 4.13 by 2023, suggesting an improving return on the shareholders' investment relative to sales volume.
In summary, the data reveals a divergence between equity turnover and asset turnover trends in the early part of the period, followed by a synchronized improvement in efficiency across all metrics from 2022 onwards.
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Net Fixed Asset Turnover
Kellanova, net fixed asset turnover 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 sales | 13,122) | 15,315) | 14,181) | 13,770) | 13,578) | |
| Property, net | 3,212) | 3,789) | 3,827) | 3,713) | 3,612) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 4.09 | 4.04 | 3.71 | 3.71 | 3.76 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Coca-Cola Co. | 4.95 | 4.37 | 3.90 | — | — | |
| Mondelēz International Inc. | 3.72 | 3.49 | 3.32 | — | — | |
| PepsiCo Inc. | 3.38 | 3.56 | 3.55 | — | — | |
| Philip Morris International Inc. | 4.68 | 4.73 | 5.09 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.90 | 3.86 | 3.78 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Staples | 5.17 | 5.21 | 5.06 | — | — | |
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 fixed asset turnover = Net sales ÷ Property, net
= 13,122 ÷ 3,212 = 4.09
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates an overall upward trajectory over the analyzed five-year period, indicating an increase in the efficiency with which fixed assets are utilized to generate revenue.
- Net Sales Performance
- Revenue experienced a period of growth from 2019 through 2022, reaching a peak of 15,315 million USD. However, a significant contraction occurred in 2023, with sales falling to 13,122 million USD, which represents a decline below 2019 levels.
- Net Fixed Asset Trends
- The value of net property grew steadily between 2019 and 2021, peaking at 3,827 million USD. A reversal in this trend began in 2022, followed by a sharp reduction in 2023 to 3,212 million USD. This suggests a strategic reduction in the asset base or an acceleration of depreciation.
- Net Fixed Asset Turnover Interpretation
- The turnover ratio remained relatively stagnant between 2020 and 2021 at 3.71. A notable improvement occurred in 2022, rising to 4.04 as sales grew while the asset base began to contract. In 2023, the ratio reached its peak of 4.09; this improvement occurred despite falling sales, as the proportional decrease in net fixed assets was more pronounced than the decline in revenue.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Kellanova, net fixed asset turnover (including operating lease, right-of-use asset) 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 sales | 13,122) | 15,315) | 14,181) | 13,770) | 13,578) | |
| Property, net | 3,212) | 3,789) | 3,827) | 3,713) | 3,612) | |
| Operating lease right-of-use assets | 661) | 617) | 640) | 658) | 541) | |
| Property, net (including operating lease, right-of-use asset) | 3,873) | 4,406) | 4,467) | 4,371) | 4,153) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.39 | 3.48 | 3.17 | 3.15 | 3.27 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Coca-Cola Co. | 4.33 | 3.82 | 3.41 | — | — | |
| Mondelēz International Inc. | 3.47 | 3.25 | 3.10 | — | — | |
| PepsiCo Inc. | 3.05 | 3.24 | 3.25 | — | — | |
| Philip Morris International Inc. | 4.32 | 4.35 | 4.69 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Food, Beverage & Tobacco | 3.53 | 3.51 | 3.45 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Staples | 4.68 | 4.69 | 4.55 | — | — | |
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 fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, net (including operating lease, right-of-use asset)
= 13,122 ÷ 3,873 = 3.39
2 Click competitor name to see calculations.
The analysis of long-term investment activity indicates a period of moderate fluctuation in asset utilization efficiency. While net sales and the net fixed asset base experienced volatility, the resulting turnover ratio suggests a consistent ability to generate revenue relative to the investment in property and right-of-use assets.
- Net Sales Trajectory
- Revenue exhibited a growth trend from 2019 through 2022, peaking at 15,315 million US dollars. However, a significant contraction occurred in 2023, with sales falling to 13,122 million US dollars, representing a decline from the previous year's peak.
- Fixed Asset Base Evolution
- The value of net property, including operating lease right-of-use assets, increased steadily between 2019 and 2021, reaching 4,467 million US dollars. A subsequent decline was observed in 2022 and 2023, with the asset base reaching a five-year low of 3,873 million US dollars by the end of 2023.
- Net Fixed Asset Turnover Analysis
- The turnover ratio fluctuated within a narrow range, dipping to 3.15 in 2020 before climbing to a peak of 3.48 in 2022. Despite the reduction in net sales in 2023, the turnover ratio remained resilient at 3.39. This suggests that the reduction in the fixed asset base occurred at a rate that helped offset the decline in revenue, thereby maintaining a higher level of asset efficiency compared to the 2020-2021 period.
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Total Asset Turnover
Kellanova, total asset turnover 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 sales | 13,122) | 15,315) | 14,181) | 13,770) | 13,578) | |
| Total assets | 15,621) | 18,496) | 18,178) | 17,996) | 17,564) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.84 | 0.83 | 0.78 | 0.77 | 0.77 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Coca-Cola Co. | 0.47 | 0.46 | 0.41 | — | — | |
| Mondelēz International Inc. | 0.50 | 0.44 | 0.43 | — | — | |
| PepsiCo Inc. | 0.91 | 0.94 | 0.86 | — | — | |
| Philip Morris International Inc. | 0.54 | 0.51 | 0.76 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 0.62 | 0.61 | 0.60 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Consumer Staples | 1.51 | 1.47 | 1.41 | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 13,122 ÷ 15,621 = 0.84
2 Click competitor name to see calculations.
An analysis of the investment activity reveals a steady improvement in asset utilization efficiency over the five-year period ending December 30, 2023, despite significant fluctuations in both revenue and the total asset base.
- Net Sales Performance
- Revenue exhibited a growth trend from 2019 to 2022, rising from 13,578 million to a peak of 15,315 million. However, a notable contraction occurred in 2023, with net sales falling to 13,122 million, the lowest level recorded during the analyzed period.
- Total Asset Trajectory
- The asset base expanded incrementally between 2019 and 2022, reaching 18,496 million. This growth was followed by a significant reduction in 2023, where total assets decreased to 15,621 million. This sharp decline suggests a strategic restructuring, asset divestment, or significant write-downs.
- Total Asset Turnover Efficiency
- The total asset turnover ratio demonstrated a consistent upward trend, increasing from 0.77 in 2019 and 2020 to 0.84 by 2023. The increase in the ratio during 2023 is particularly noteworthy; while net sales declined, the simultaneous and more pronounced reduction in the total asset base resulted in a higher turnover ratio. This indicates an improvement in the ability to generate sales from the remaining assets, reflecting a leaner and more efficient asset structure.
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Equity Turnover
Kellanova, equity turnover 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 sales | 13,122) | 15,315) | 14,181) | 13,770) | 13,578) | |
| Total Kellanova equity | 3,175) | 3,941) | 3,720) | 3,112) | 2,747) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 4.13 | 3.89 | 3.81 | 4.42 | 4.94 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Coca-Cola Co. | 1.76 | 1.78 | 1.68 | — | — | |
| Mondelēz International Inc. | 1.27 | 1.17 | 1.02 | — | — | |
| PepsiCo Inc. | 4.94 | 5.04 | 4.95 | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| Equity Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.39 | 3.26 | 3.12 | — | — | |
| Equity Turnover, Industry | ||||||
| Consumer Staples | 5.62 | 5.26 | 5.06 | — | — | |
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
Equity turnover = Net sales ÷ Total Kellanova equity
= 13,122 ÷ 3,175 = 4.13
2 Click competitor name to see calculations.
The analysis of investment activity between 2019 and 2023 reveals a fluctuating relationship between revenue generation and the equity base, resulting in a non-linear trend in equity turnover efficiency.
- Net Sales Performance
- Revenue exhibited a steady upward trajectory from 2019 through 2022, peaking at 15,315 million US dollars. However, 2023 marked a significant reversal, with net sales declining to 13,122 million US dollars, the lowest level recorded during the five-year period.
- Equity Base Evolution
- Total equity experienced consistent growth from 2019 to 2022, rising from 2,747 million US dollars to a peak of 3,941 million US dollars. This expansion was reversed in 2023, as equity decreased to 3,175 million US dollars.
- Equity Turnover Trends
- The equity turnover ratio followed a U-shaped trajectory. A downward trend occurred between 2019 and 2021, with the ratio falling from 4.94 to 3.81, indicating that the growth in equity outpaced the growth in net sales. A recovery phase began in 2022 and continued into 2023, with the ratio rising to 4.13. This recent increase suggests a higher relative efficiency in asset utilization, primarily driven by the contraction of the equity base in 2023 which was more pronounced than the decline in sales.
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