Analysis of Debt
Total Debt (Carrying Amount)
General Mills Inc., balance sheet: debt
US$ in thousands
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)
| 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
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
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. |