Stock Analysis on Net

General Mills Inc. (NYSE:GIS)

This company has been moved to the archive! The financial data has not been updated since December 18, 2019.

Analysis of Debt 

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Total Debt (Carrying Amount)

General Mills Inc., balance sheet: debt

US$ in thousands

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May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Current portion of long-term debt 1,396,500 1,600,100 604,700 1,103,400 1,000,400 1,250,600
Notes payable 1,468,700 1,549,800 1,234,100 269,800 615,800 1,111,700
Long-term debt, excluding current portion 11,624,800 12,668,700 7,642,900 7,057,700 7,607,700 6,423,500
Total debt (carrying amount) 14,490,000 15,818,600 9,481,700 8,430,900 9,223,900 8,785,800

Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).

Debt item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. General Mills Inc. total debt increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Total Debt (Fair Value)

Microsoft Excel
May 26, 2019
Selected Financial Data (US$ in thousands)
Notes payable 1,468,700
Long-term debt, including the current portion 13,272,800
Total debt (fair value) 14,741,500
Financial Ratio
Debt, fair value to carrying amount ratio 1.02

Based on: 10-K (reporting date: 2019-05-26).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 3.34%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
4.20% 1,400,000 58,800
3.15% 1,000,000 31,500
3.70% 850,000 31,450
4.00% 800,000 32,000
3.20% 750,000 24,000
4.70% 650,000 30,550
3.20% 600,000 19,200
2.10% 560,100 11,762
1.00% 560,100 5,601
4.55% 500,000 22,750
2.60% 500,000 13,000
5.40% 500,000 27,000
4.15% 500,000 20,750
3.65% 500,000 18,250
2.20% 500,000 11,000
1.50% 448,100 6,722
0.00% 336,100
2.20% 224,000 4,928
6.59% 104,200 6,867
3.40% 1,468,700 49,936
Total 12,751,300 426,065
3.34%

Based on: 10-K (reporting date: 2019-05-26).

1 US$ in thousands

2 Weighted-average interest rate = 100 × 426,065 ÷ 12,751,300 = 3.34%


Interest Costs Incurred

General Mills Inc., interest costs incurred

US$ in thousands

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12 months ended: May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Interest expense, net of capitalized interest 527,400 385,400 302,100 311,900 328,600 318,500
Capitalized interest 2,800 4,100 4,600 7,700 6,900 4,900
Interest expense 530,200 389,500 306,700 319,600 335,500 323,400

Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).

Debt item Description The company
Interest expense, net of capitalized interest Amount of the cost of borrowed funds accounted for as interest expense for debt. General Mills Inc. interest expense, net of capitalized interest increased from 2017 to 2018 and from 2018 to 2019.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. General Mills Inc. capitalized interest decreased from 2017 to 2018 and from 2018 to 2019.
Interest expense Total interest costs incurred during the period and either capitalized or charged against earnings. General Mills Inc. interest expense increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Interest Coverage Ratio

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May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Selected Financial Data (US$ in thousands)
Net earnings attributable to General Mills 1,752,700 2,131,000 1,657,500 1,697,400 1,221,300 1,824,400
Add: Net income attributable to noncontrolling interest 33,500 32,000 43,600 39,400 38,100 36,900
Add: Income tax expense 367,800 57,300 655,200 755,200 586,800 883,300
Add: Interest expense, net of capitalized interest 527,400 385,400 302,100 311,900 328,600 318,500
Earnings before interest and tax (EBIT) 2,681,400 2,605,700 2,658,400 2,803,900 2,174,800 3,063,100
 
Interest expense 530,200 389,500 306,700 319,600 335,500 323,400
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 5.08 6.76 8.80 8.99 6.62 9.62
Adjusted interest coverage ratio (with capitalized interest)2 5.06 6.69 8.67 8.77 6.48 9.47

Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).

2019 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of capitalized interest
= 2,681,400 ÷ 527,400 = 5.08

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest expense
= 2,681,400 ÷ 530,200 = 5.06


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). General Mills Inc. adjusted interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.