Kellogs

 

Key Performance Metrics

  • The review of Net Profit Margin witnessed a declining trend. The Net Profit Margin worsened from 6.35% in 2020 to 3.98% in 2023.
  • The average EBIT Margin for the period under analysis was 5.44%, with 2022 and 2021 performing the worst and best, respectively.
  • In the current year, Kellogg’s was able to cover its interest liabilities 15.50 times – compared to 2017 when it was 5.4 times.
  • The Asset turnover stood at 1.70 times in 2023 from 0.79 in 2019, implying a high performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Kellogg’s has fluctuated year on year. The revenue decreased by a negative 14.20% between 2020 and 2021 and a further 9.55% increase was recorded between 2021 and 2022. There also occurred an increase of 2.52% between 2022 and 2023 (the current period).
  • Kellogg’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
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Liquidity

  • The company’s result in liquidity looks poor, as current ratio/acid test decreased from 0.64:1/0.66:1 to 0.84:1/0.38:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.

Capital Structure

  • Kellogg’s is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 1.66% in the current year.

Source: Kellogg’s Annual Report

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