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At the moment I am looking into Kellogg, because I think it could be a good long term investment. I like strong brands and Kellog seems to be everywhere, also here on the Greek island where I live. I also like the recent progresses they are making, but I am still hesitating.

The difference between ROA and ROE is huge (8.53% vs. 62.17%). As I understand it, this means the current success is largely fueld by debts. On the other hand during the last 2 years ROA was increasing, whilst ROE is decreasing. Although a decreasing ROE is not exactly good, this also may be a sign that the steady reduction of debts is taking effect. There is a clear trend of decreasing debts versus increasing free cash flow. But Debt/Equity-Ratio is 2.895, so there is still a long way to go to reduce debts seriously.

Any other thoughts?

Stefan
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