Stock Analysis on Net
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 Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

General Mills Inc., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Goodwill 13,995,800 14,065,000 8,747,200 8,741,200 8,874,900 8,650,500
Brands and other indefinite-lived intangibles 6,590,800 6,818,700 4,161,100 4,147,500 4,262,100 4,504,100
Intangible assets not subject to amortization 6,590,800 6,818,700 4,161,100 4,147,500 4,262,100 4,504,100
Franchise agreements, customer relationships, and other finite-lived intangibles 786,100 811,700 524,800 536,900 544,000 630,700
Accumulated amortization (210,100) (185,300) (155,500) (145,800) (129,100) (120,500)
Intangible assets subject to amortization 576,000 626,400 369,300 391,100 414,900 510,200
Other intangible assets 7,166,800 7,445,100 4,530,400 4,538,600 4,677,000 5,014,300
Goodwill and other intangible assets 21,162,600 21,510,100 13,277,600 13,279,800 13,551,900 13,664,800

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. General Mills Inc. goodwill increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Other intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. General Mills Inc. other intangible assets increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. General Mills Inc. goodwill and other intangible assets increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Adjustments to Financial Statements: Removal of Goodwill

General Mills Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Adjustment to Total Assets
Total assets (as reported) 30,111,200 30,624,000 21,812,600 21,712,300 21,964,500 23,145,700
Less: Goodwill 13,995,800 14,065,000 8,747,200 8,741,200 8,874,900 8,650,500
Total assets (adjusted) 16,115,400 16,559,000 13,065,400 12,971,100 13,089,600 14,495,200
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 7,054,500 6,141,100 4,327,900 4,930,200 4,996,700 6,534,800
Less: Goodwill 13,995,800 14,065,000 8,747,200 8,741,200 8,874,900 8,650,500
Stockholders’ equity (adjusted) (6,941,300) (7,923,900) (4,419,300) (3,811,000) (3,878,200) (2,115,700)

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).

General Mills Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

General Mills Inc., adjusted financial ratios

Microsoft Excel
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Total Asset Turnover
Reported total asset turnover 0.56 0.51 0.72 0.76 0.80 0.77
Adjusted total asset turnover 1.05 0.95 1.20 1.28 1.35 1.24
Financial Leverage
Reported financial leverage 4.27 4.99 5.04 4.40 4.40 3.54
Adjusted financial leverage — — — — — —
Return on Equity (ROE)
Reported ROE 24.85% 34.70% 38.30% 34.43% 24.44% 27.92%
Adjusted ROE — — — — — —
Return on Assets (ROA)
Reported ROA 5.82% 6.96% 7.60% 7.82% 5.56% 7.88%
Adjusted ROA 10.88% 12.87% 12.69% 13.09% 9.33% 12.59%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Mills Inc. adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. General Mills Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

General Mills Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
As Reported
Selected Financial Data (US$ in thousands)
Net sales 16,865,200 15,740,400 15,619,800 16,563,100 17,630,300 17,909,600
Total assets 30,111,200 30,624,000 21,812,600 21,712,300 21,964,500 23,145,700
Activity Ratio
Total asset turnover1 0.56 0.51 0.72 0.76 0.80 0.77
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales 16,865,200 15,740,400 15,619,800 16,563,100 17,630,300 17,909,600
Adjusted total assets 16,115,400 16,559,000 13,065,400 12,971,100 13,089,600 14,495,200
Activity Ratio
Adjusted total asset turnover2 1.05 0.95 1.20 1.28 1.35 1.24

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 Total asset turnover = Net sales ÷ Total assets
= 16,865,200 ÷ 30,111,200 = 0.56

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 16,865,200 ÷ 16,115,400 = 1.05

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Mills Inc. adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
As Reported
Selected Financial Data (US$ in thousands)
Total assets 30,111,200 30,624,000 21,812,600 21,712,300 21,964,500 23,145,700
Stockholders’ equity 7,054,500 6,141,100 4,327,900 4,930,200 4,996,700 6,534,800
Solvency Ratio
Financial leverage1 4.27 4.99 5.04 4.40 4.40 3.54
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 16,115,400 16,559,000 13,065,400 12,971,100 13,089,600 14,495,200
Adjusted stockholders’ equity (6,941,300) (7,923,900) (4,419,300) (3,811,000) (3,878,200) (2,115,700)
Solvency Ratio
Adjusted financial leverage2 — — — — — —

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 Financial leverage = Total assets ÷ Stockholders’ equity
= 30,111,200 ÷ 7,054,500 = 4.27

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 16,115,400 ÷ -6,941,300 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
As Reported
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
Stockholders’ equity 7,054,500 6,141,100 4,327,900 4,930,200 4,996,700 6,534,800
Profitability Ratio
ROE1 24.85% 34.70% 38.30% 34.43% 24.44% 27.92%
Adjusted for Goodwill
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
Adjusted stockholders’ equity (6,941,300) (7,923,900) (4,419,300) (3,811,000) (3,878,200) (2,115,700)
Profitability Ratio
Adjusted ROE2 — — — — — —

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 ROE = 100 × Net earnings attributable to General Mills ÷ Stockholders’ equity
= 100 × 1,752,700 ÷ 7,054,500 = 24.85%

2 Adjusted ROE = 100 × Net earnings attributable to General Mills ÷ Adjusted stockholders’ equity
= 100 × 1,752,700 ÷ -6,941,300 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
As Reported
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
Total assets 30,111,200 30,624,000 21,812,600 21,712,300 21,964,500 23,145,700
Profitability Ratio
ROA1 5.82% 6.96% 7.60% 7.82% 5.56% 7.88%
Adjusted for Goodwill
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
Adjusted total assets 16,115,400 16,559,000 13,065,400 12,971,100 13,089,600 14,495,200
Profitability Ratio
Adjusted ROA2 10.88% 12.87% 12.69% 13.09% 9.33% 12.59%

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 ROA = 100 × Net earnings attributable to General Mills ÷ Total assets
= 100 × 1,752,700 ÷ 30,111,200 = 5.82%

2 Adjusted ROA = 100 × Net earnings attributable to General Mills ÷ Adjusted total assets
= 100 × 1,752,700 ÷ 16,115,400 = 10.88%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. General Mills Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.