Microsoft Excel LibreOffice Calc

General Mills Inc. (GIS)

Analysis of Income Taxes

Difficulty: Advanced

Income Tax Expense (Benefit)

General Mills Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Federal 151,900  441,200  368,500  489,800  392,700  526,700 
State and local 35,300  35,200  21,100  30,800  29,300  37,800 
Foreign 84,600  85,200  81,700  114,000  139,500  146,300 
Currently payable 271,800  561,600  471,300  634,600  561,500  710,800 
Federal 86,700  (478,500) 201,300  123,000  70,300  159,100 
State and local 21,600  15,700  10,200  (6,900) (8,700) 21,300 
Foreign (12,300) (41,500) (27,600) 4,500  (36,300) (7,900)
Deferred 96,000  (504,300) 183,900  120,600  25,300  172,500 
Income taxes 367,800  57,300  655,200  755,200  586,800  883,300 

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

Item Description The company
Currently payable Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. General Mills Inc.’s currently payable increased from 2017 to 2018 but then declined significantly from 2018 to 2019.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. General Mills Inc.’s deferred declined from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. General Mills Inc.’s income taxes declined from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Effective Income Tax Rate (EITR)

General Mills Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
United States statutory income tax rate 21.00% 29.40% 35.00% 35.00% 35.00% 35.00%
State and local income taxes, net of federal tax benefits 2.50% 1.70% 0.80% 0.70% 0.70% 1.40%
Foreign rate differences 0.00% -2.00% -3.50% -2.20% -3.10% -0.10%
Repatriation of foreign earnings 0.00% 0.00% 0.00% 0.00% 4.50% 0.00%
Non-deductible goodwill 0.00% 0.00% 0.00% 2.60% 0.00% 0.00%
Stock based compensation -1.20% -1.20% 0.00% 0.00% 0.00% 0.00%
Capital loss -3.70% 0.00% 0.00% 0.00% 0.00% 0.00%
Prior period tax adjustment 0.00% 1.90% 0.00% 0.00% 0.00% 0.00%
Domestic manufacturing deduction 0.00% -1.90% -2.80% -2.00% -2.90% -2.30%
Other, net -0.50% -0.70% -0.70% -2.70% -0.90% -0.70%
Effective income tax rate, before provisional net tax benefit 18.10% 27.20% 28.80% 31.40% 33.30% 33.30%
Provisional net tax benefit -0.40% -24.50% 0.00% 0.00% 0.00% 0.00%
Effective income tax rate 17.70% 2.70% 28.80% 31.40% 33.30% 33.30%

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

Item Description The company
Effective income tax rate, before provisional net tax benefit Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. General Mills Inc.’s effective income tax rate, before provisional net tax benefit declined from 2017 to 2018 and from 2018 to 2019.

Components of Deferred Tax Assets and Liabilities

General Mills Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Accrued liabilities 50,900  47,200  70,000  89,900  98,000  106,000 
Compensation and employee benefits 196,600  210,200  419,200  491,500  536,200  546,000 
Unrealized hedges —  —  —  —  800  — 
Pension 103,200  57,100  196,300  322,000  169,000  — 
Tax credit carryforwards 7,300  7,400  18,400  4,500  5,600  78,900 
Stock, partnership, and miscellaneous investments 104,200  147,900  276,400  353,600  384,100  427,900 
Capital losses 73,100  12,900  29,800  14,500  6,100  13,000 
Net operating losses 141,700  161,200  109,500  97,900  89,300  71,400 
Other 71,300  52,900  85,600  84,100  74,500  117,700 
Gross deferred tax assets 748,300  696,800  1,205,200  1,458,000  1,363,600  1,360,900 
Valuation allowance (213,700) (176,000) (231,800) (227,000) (215,400) (221,600)
Net deferred tax assets 534,600  520,800  973,400  1,231,000  1,148,200  1,139,300 
Brands (1,472,600) (1,498,700) (1,310,100) (1,311,700) (1,346,300) (1,373,400)
Fixed assets (377,800) (329,500) (484,500) (476,300) (446,500) (499,400)
Pension —  —  —  —  —  (2,000)
Intangible assets (259,700) (255,100) (238,600) (221,800) (208,400) (204,200)
Tax lease transactions (23,900) (26,000) (45,800) (48,000) (50,800) (53,100)
Inventories (39,000) (38,800) (60,000) (53,000) (59,700) (60,600)
Stock, partnership, and miscellaneous investments (330,000) (317,100) (479,400) (476,000) (472,500) (470,700)
Unrealized hedges (27,900) (28,500) (45,400) (22,600) —  (22,800)
Other (34,700) (30,900) (29,000) (21,200) (14,200) (45,000)
Gross deferred tax liabilities (2,565,600) (2,524,600) (2,692,800) (2,630,600) (2,598,400) (2,731,200)
Net deferred tax asset (liability) (2,031,000) (2,003,800) (1,719,400) (1,399,600) (1,450,200) (1,591,900)

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. General Mills Inc.’s gross deferred tax assets declined from 2017 to 2018 but then slightly increased from 2018 to 2019.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. General Mills Inc.’s net deferred tax assets declined from 2017 to 2018 but then slightly increased from 2018 to 2019.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. General Mills Inc.’s net deferred tax asset (liability) declined from 2017 to 2018 and from 2018 to 2019.

Deferred Tax Assets and Liabilities, Classification

General Mills Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Current deferred tax assets —  —  —  —  100,100  74,100 
Noncurrent deferred tax liabilities 2,031,000  2,003,800  1,719,400  1,399,600  1,550,300  1,666,000 

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

Item Description The company
Noncurrent deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. General Mills Inc.’s noncurrent deferred tax liabilities increased from 2017 to 2018 and from 2018 to 2019.

Analyst Adjustments: Removal of Deferred Taxes

General Mills Inc., adjustments to financial data

US$ in thousands

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Adjustment to Current Assets
Current assets (as reported) 4,186,500  4,123,700  4,061,400  3,937,200  3,785,700  4,393,500 
Less: Current deferred tax assets, net —  —  —  —  100,100  74,100 
Current assets (adjusted) 4,186,500  4,123,700  4,061,400  3,937,200  3,685,600  4,319,400 
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: Current deferred tax assets, net —  —  —  —  100,100  74,100 
Total assets (adjusted) 30,111,200  30,624,000  21,812,600  21,712,300  21,864,400  23,071,600 
Adjustment to Total Liabilities
Total liabilities (as reported) 22,191,800  23,355,400  16,216,200  15,559,600  15,792,900  15,156,200 
Less: Noncurrent deferred tax liabilities, net 2,031,000  2,003,800  1,719,400  1,399,600  1,550,300  1,666,000 
Total liabilities (adjusted) 20,160,800  21,351,600  14,496,800  14,160,000  14,242,600  13,490,200 
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: Net deferred tax assets (liabilities) (2,031,000) (2,003,800) (1,719,400) (1,399,600) (1,450,200) (1,591,900)
Stockholders’ equity (adjusted) 9,085,500  8,144,900  6,047,300  6,329,800  6,446,900  8,126,700 
Adjustment to Net Earnings Attributable To General Mills
Net earnings attributable to General Mills (as reported) 1,752,700  2,131,000  1,657,500  1,697,400  1,221,300  1,824,400 
Add: Deferred income tax expense (benefit) 96,000  (504,300) 183,900  120,600  25,300  172,500 
Net earnings attributable to General Mills (adjusted) 1,848,700  1,626,700  1,841,400  1,818,000  1,246,600  1,996,900 

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

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

Adjusted Ratios: Removal of Deferred Taxes (Summary)

General Mills Inc., adjusted ratios

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Current Ratio
Reported current ratio 0.59 0.56 0.76 0.79 0.77 0.81
Adjusted current ratio 0.59 0.56 0.76 0.79 0.75 0.80
Net Profit Margin
Reported net profit margin 10.39% 13.54% 10.61% 10.25% 6.93% 10.19%
Adjusted net profit margin 10.96% 10.33% 11.79% 10.98% 7.07% 11.15%
Total Asset Turnover
Reported total asset turnover 0.56 0.51 0.72 0.76 0.80 0.77
Adjusted total asset turnover 0.56 0.51 0.72 0.76 0.81 0.78
Financial Leverage
Reported financial leverage 4.27 4.99 5.04 4.40 4.40 3.54
Adjusted financial leverage 3.31 3.76 3.61 3.43 3.39 2.84
Return on Equity (ROE)
Reported ROE 24.85% 34.70% 38.30% 34.43% 24.44% 27.92%
Adjusted ROE 20.35% 19.97% 30.45% 28.72% 19.34% 24.57%
Return on Assets (ROA)
Reported ROA 5.82% 6.96% 7.60% 7.82% 5.56% 7.88%
Adjusted ROA 6.14% 5.31% 8.44% 8.37% 5.70% 8.66%

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. General Mills Inc.’s adjusted current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. General Mills Inc.’s adjusted net profit margin deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Mills Inc.’s adjusted total asset turnover deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 General Mills Inc.’s adjusted financial leverage increased from 2017 to 2018 but then declined significantly from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. General Mills Inc.’s adjusted ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Mills Inc.’s adjusted ROA deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

General Mills Inc., Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
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)
Current assets 4,186,500  4,123,700  4,061,400  3,937,200  3,785,700  4,393,500 
Current liabilities 7,087,100  7,341,900  5,330,800  5,014,700  4,890,100  5,423,500 
Ratio
Current ratio1 0.59 0.56 0.76 0.79 0.77 0.81
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted current assets 4,186,500  4,123,700  4,061,400  3,937,200  3,685,600  4,319,400 
Current liabilities 7,087,100  7,341,900  5,330,800  5,014,700  4,890,100  5,423,500 
Ratio
Adjusted current ratio2 0.59 0.56 0.76 0.79 0.75 0.80

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

2019 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 4,186,500 ÷ 7,087,100 = 0.59

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 4,186,500 ÷ 7,087,100 = 0.59

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. General Mills Inc.’s adjusted current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
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 
Net sales 16,865,200  15,740,400  15,619,800  16,563,100  17,630,300  17,909,600 
Ratio
Net profit margin1 10.39% 13.54% 10.61% 10.25% 6.93% 10.19%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to General Mills 1,848,700  1,626,700  1,841,400  1,818,000  1,246,600  1,996,900 
Net sales 16,865,200  15,740,400  15,619,800  16,563,100  17,630,300  17,909,600 
Ratio
Adjusted net profit margin2 10.96% 10.33% 11.79% 10.98% 7.07% 11.15%

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

2019 Calculations

1 Net profit margin = 100 × Net earnings attributable to General Mills ÷ Net sales
= 100 × 1,752,700 ÷ 16,865,200 = 10.39%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to General Mills ÷ Net sales
= 100 × 1,848,700 ÷ 16,865,200 = 10.96%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. General Mills Inc.’s adjusted net profit margin deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
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 
Ratio
Total asset turnover1 0.56 0.51 0.72 0.76 0.80 0.77
Adjusted for Deferred Taxes
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 30,111,200  30,624,000  21,812,600  21,712,300  21,864,400  23,071,600 
Ratio
Adjusted total asset turnover2 0.56 0.51 0.72 0.76 0.81 0.78

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

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 ÷ 30,111,200 = 0.56

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

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
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 
Ratio
Financial leverage1 4.27 4.99 5.04 4.40 4.40 3.54
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 30,111,200  30,624,000  21,812,600  21,712,300  21,864,400  23,071,600 
Adjusted stockholders’ equity 9,085,500  8,144,900  6,047,300  6,329,800  6,446,900  8,126,700 
Ratio
Adjusted financial leverage2 3.31 3.76 3.61 3.43 3.39 2.84

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

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
= 30,111,200 ÷ 9,085,500 = 3.31

Ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 General Mills Inc.’s adjusted financial leverage increased from 2017 to 2018 but then declined significantly from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
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 
Ratio
ROE1 24.85% 34.70% 38.30% 34.43% 24.44% 27.92%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to General Mills 1,848,700  1,626,700  1,841,400  1,818,000  1,246,600  1,996,900 
Adjusted stockholders’ equity 9,085,500  8,144,900  6,047,300  6,329,800  6,446,900  8,126,700 
Ratio
Adjusted ROE2 20.35% 19.97% 30.45% 28.72% 19.34% 24.57%

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

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 × Adjusted net earnings attributable to General Mills ÷ Adjusted stockholders’ equity
= 100 × 1,848,700 ÷ 9,085,500 = 20.35%

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. General Mills Inc.’s adjusted ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
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 
Ratio
ROA1 5.82% 6.96% 7.60% 7.82% 5.56% 7.88%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to General Mills 1,848,700  1,626,700  1,841,400  1,818,000  1,246,600  1,996,900 
Adjusted total assets 30,111,200  30,624,000  21,812,600  21,712,300  21,864,400  23,071,600 
Ratio
Adjusted ROA2 6.14% 5.31% 8.44% 8.37% 5.70% 8.66%

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

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 × Adjusted net earnings attributable to General Mills ÷ Adjusted total assets
= 100 × 1,848,700 ÷ 30,111,200 = 6.14%

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