General Mills Inc. (NYSE:GIS)

Currently payable

The currently payable income tax expense shows a general declining trend over the period analyzed. Starting at 710,800 thousand USD in May 2014, it decreases to 271,800 thousand USD by May 2019, with some fluctuations in between. Notably, the value dropped significantly from 561,600 thousand USD in May 2018 to 271,800 thousand USD in May 2019, indicating a considerable reduction in current tax obligations towards the end of the period.

Deferred

The deferred income tax expense exhibits considerable volatility throughout the years. It begins at 172,500 thousand USD in May 2014, drops sharply to 25,300 thousand USD in May 2015, then increases to 120,600 thousand USD in May 2016 and further to 183,900 thousand USD in May 2017. In May 2018, there is a marked negative deferred tax expense of -504,300 thousand USD, suggesting a deferred tax benefit or reversal. By May 2019, the deferred tax expense rebounds to 96,000 thousand USD, indicating some recovery or adjustment after the negative value the previous year.

Income taxes (total)

Total income tax expense aligns broadly with the movements in both current and deferred taxes, showing an overall downward trend. It starts at 883,300 thousand USD in May 2014 and decreases substantially to 367,800 thousand USD in May 2019. This decline, however, is not steady; the total expense peaks at 755,200 thousand USD in May 2016, followed by a series of decreases, including a steep drop to 57,300 thousand USD in May 2018, which correlates with the large negative deferred tax expense in the same year. The subsequent increase in total income tax expense in 2019 reflects the positive adjustment in the deferred component.

United States statutory income tax rate

The statutory income tax rate remained steady at 35% from 2014 through 2017, then declined markedly to 29.4% in 2018 and further to 21% in 2019, reflecting significant tax legislation changes during this period.

State and local income taxes, net of federal tax benefits

This component showed a general upward trend, starting at 1.4% in 2014, decreasing to 0.7% in 2015 and 2016, then rising consistently to reach 2.5% by 2019, indicating increasing state and local tax impacts.

Foreign rate differences

Foreign rate differences were negative throughout, ranging from -0.1% to as low as -3.5% in 2017, before slightly moderating to -2% in 2018. This indicates ongoing unfavorable impacts from differences in foreign tax rates relative to the U.S. statutory rate.

Repatriation of foreign earnings

An isolated impact was observed in 2015, with a 4.5% increase attributed to repatriation of foreign earnings. No other years reported values for this item, suggesting a one-time event in that year.

Non-deductible goodwill

This factor was reported only in 2016 at 2.6%, indicating an increase in non-deductible goodwill expenses impacting the tax rate during that year alone.

Stock based compensation

Stock based compensation was recorded in 2018 and 2019 with a consistent negative effect of -1.2%, reflecting a tax benefit arising from these expenses in those years.

Capital loss

A notable capital loss occurred in 2019 with a -3.7% impact, contributing to effective tax rate reductions that year.

Prior period tax adjustment

A positive prior period tax adjustment of 1.9% was recognized in 2018, suggesting corrections or changes from previous tax periods affected the current effective rate.

Domestic manufacturing deduction

The domestic manufacturing deduction consistently decreased the tax rate, ranging from -2.3% in 2014 to a lower impact of -1.9% in 2018, indicating a diminishing benefit over time and no data available for 2019.

Other, net

The “Other, net” category exhibited relatively small, negative effects fluctuating between -0.7% and -2.7%, showing minor miscellaneous tax impacts across all years.

Effective income tax rate, before provisional net tax benefit

This rate declined steadily from 33.3% in 2014 and 2015 to 18.1% in 2019, demonstrating an overall decreasing trend before considering provisional net tax benefits.

Provisional net tax benefit

Significant provisional net tax benefit was recorded in 2018 at -24.5%, which dramatically lowered the overall effective tax rate that year; a smaller benefit occurred in 2019 at -0.4%, indicating less pronounced effects from provisional adjustments.

Effective income tax rate

The combined effective income tax rate closely follows the trend observed before provisional adjustments but shows a sharp decrease in 2018 to 2.7%, predominantly driven by the substantial provisional net tax benefit for that year. In 2019, the rate rebounded slightly to 17.7%, remaining well below earlier years, signifying substantially lower tax burdens in the latter period.

Accrued liabilities

There is a clear downward trend from 106,000 thousand US dollars in 2014 to 47,200 thousand in 2018, followed by a slight increase to 50,900 thousand in 2019, indicating a reduction in short-term obligations over the period with a minor reversal at the end.

Compensation and employee benefits

Values steadily decline from 546,000 thousand US dollars in 2014 to 196,600 thousand in 2019, demonstrating a significant reduction in personnel-related expenses or headcount over the six years.

Unrealized hedges (Assets)

Only the 2015 figure is reported at 800 thousand US dollars with other years lacking data, which limits analysis for this category.

Pension (Assets)

The pension asset peaks at 322,000 thousand US dollars in 2016, decreases substantially to 57,100 thousand in 2018, then rises again to 103,200 thousand in 2019. This suggests volatility in pension-related assets or valuation adjustments.

Tax credit carryforwards

The tax credit carryforwards show a sharp decline from 78,900 thousand US dollars in 2014 to 4,500 thousand in 2016, with a subsequent increase to 18,400 thousand in 2017, then declining again to about 7,300 thousand by 2019, indicating fluctuations in the utilization or availability of tax credits.

Stock, partnership, and miscellaneous investments (Assets)

There is a consistent decline from 427,900 thousand US dollars in 2014 to 104,200 thousand in 2019, reflecting divestitures or impairments in various investments over time.

Capital losses

Capital losses exhibit variability, falling from 13,000 thousand US dollars in 2014 to 6,100 thousand in 2015, then increasing sharply to 73,100 thousand in 2019, indicating increased realized or recognized losses in later years.

Net operating losses

Net operating losses show a steady increase from 71,400 thousand US dollars in 2014 to a peak of 161,200 thousand in 2018, followed by a slight decrease to 141,700 thousand in 2019, implying growing carryforward losses that may be offset against future taxable income.

Other Assets

Other asset values decrease from 117,700 thousand US dollars in 2014 to 52,900 thousand in 2018, then rise to 71,300 thousand in 2019, indicating some fluctuation or realization of miscellaneous assets.

Gross deferred tax assets

Values remain relatively stable between 2014 and 2016 (~1,360,000 to 1,458,000 thousand US dollars), then sharply decline to 696,800 thousand in 2018 with a slight recovery to 748,300 thousand in 2019, showing reduced deferred tax benefits possibly from asset disposals or utilization of losses.

Valuation allowance

The valuation allowance is consistently negative, indicating a contra account. The allowance fluctuates between -231,800 thousand US dollars in 2017 and -176,000 thousand in 2018 before moving back to -213,700 thousand in 2019, reflecting adjustments in the realizability of deferred tax assets.

Net deferred tax assets

Net deferred tax assets increase slightly to a peak of 1,231,000 thousand US dollars in 2016, then decrease substantially to 520,800 thousand in 2018, remaining low at 534,600 thousand in 2019, highlighting a decline in net tax benefits available.

Brands (Liabilities)

Brand liabilities show an increasing negative trend from -1,373,400 thousand US dollars in 2014 to -1,498,700 thousand in 2018, with a slight decrease to -1,472,600 thousand in 2019, representing a growth in brand-related amortization or impairment liabilities.

Fixed assets (Liabilities)

Fixed asset values improve slightly from -499,400 thousand US dollars in 2014 to -329,500 thousand in 2018 but then decrease to -377,800 thousand in 2019, suggesting some asset disposals or revaluation in 2018 followed by additions or impairments the following year.

Pension (Liabilities)

Reported only in 2014 at -2,000 thousand US dollars, with no subsequent data, limiting trend analysis.

Intangible assets (Liabilities)

Intangible asset liabilities increase in magnitude from -204,200 thousand US dollars in 2014 to -259,700 thousand in 2019, indicating greater amortization or impairment over the period.

Tax lease transactions (Liabilities)

These decline steadily from -53,100 thousand US dollars in 2014 to -23,900 thousand in 2019, reflecting a reduction in tax-related leasing obligations.

Inventories (Liabilities)

Increasingly negative values from -60,600 thousand US dollars in 2014 to -38,800 thousand in 2018, then relatively stable at around -39,000 thousand in 2019, suggesting an improved inventory position or reduction in related liabilities.

Stock, partnership, and miscellaneous investments (Liabilities)

Liabilities related to these investments remain relatively stable between -470,700 and -479,400 thousand US dollars from 2014 to 2017, then improve substantially to around -317,100 thousand in 2018 and slightly to -330,000 thousand in 2019, indicating reduced obligations or recognition of losses.

Unrealized hedges (Liabilities)

Fluctuate with initial values of -22,800 thousand US dollars in 2014 to -45,400 thousand in 2017, then moderate slightly to -27,900 thousand in 2019, showing variable hedging losses or liabilities.

Other liabilities

Increase from -45,000 thousand US dollars in 2014 to -34,700 thousand in 2019, with fluctuations in the interim years, indicating varied miscellaneous obligations.

Gross deferred tax liabilities

Remain large and somewhat stable, oscillating around -2,730,000 thousand US dollars in 2014 and -2,565,600 thousand in 2019, with minor year-to-year variations indicating steady deferred tax liabilities.

Net deferred tax asset (liability)

Net figures indicate an increasing liability position from -1,591,900 thousand US dollars in 2014 to -2,003,800 thousand in 2018, slightly worsening to -2,031,000 thousand in 2019, revealing a growing net deferred tax liability over time.

The analysis of the annual financial data reveals several key trends related to deferred tax assets and liabilities over the observed periods.

Current Deferred Tax Assets

Current deferred tax assets were reported at 74,100 thousand USD in 2014 and increased to 100,100 thousand USD in 2015. However, there is no available data for subsequent years, preventing further analysis of this item beyond 2015.

Noncurrent Deferred Tax Liabilities

The noncurrent deferred tax liabilities exhibit a generally upward trend over the six-year period. Beginning at 1,666,000 thousand USD in 2014, the liabilities decreased somewhat in 2015 and 2016, reaching 1,550,300 thousand USD and 1,399,600 thousand USD respectively. This decline ended in 2017 when liabilities sharply increased to 1,719,400 thousand USD. The upward trajectory continued in 2018 and 2019, with balances rising to 2,003,800 thousand USD and 2,031,000 thousand USD, respectively. This pattern indicates an acceleration in the growth of deferred tax liabilities after 2016.

Overall, the data points to a significant increase in noncurrent deferred tax liabilities, particularly after 2016, while current deferred tax assets data is limited to the first two years and showed initial growth. This rising deferred tax liability could affect the company's longer-term tax obligations and financial position.

The financial data reveal several notable trends over the six-year period from May 2014 to May 2019, with distinctions between reported and adjusted figures due to the treatment of income taxes.

Current Assets

Reported current assets decreased from $4.39 billion in 2014 to $3.79 billion in 2015, then generally increased through to 2019, reaching approximately $4.19 billion. Adjusted current assets follow a similar trajectory with slightly lower values initially, reflecting tax-related adjustments, but converge by 2016 and remain equal thereafter.

Total Assets

Reported total assets declined modestly from roughly $23.15 billion in 2014 to $21.91 billion in 2017, then exhibited a sharp increase to over $30.6 billion in 2018 before slightly declining in 2019. Adjusted total assets display a parallel pattern with slightly lower values in earlier years due to deferred tax effects, agreeing exactly with reported totals from 2016 onward.

Total Liabilities

Reported total liabilities generally rose from approximately $15.16 billion in 2014 to $23.36 billion in 2018, dipping slightly to $22.19 billion in 2019. Adjusted liabilities are consistently lower than reported amounts across all years, indicating significant deferred income tax liabilities included in the reported figures. The adjusted liabilities increased from about $13.49 billion in 2014 to $21.36 billion in 2018, then decreased to $20.16 billion in 2019.

Stockholders’ Equity

Reported equity declined from $6.53 billion in 2014 to $4.33 billion in 2017, followed by recovery and growth to $7.05 billion in 2019. Adjusted equity values remain consistently higher than reported equity, reflecting deferred tax asset adjustments, with a similar U-shaped trend, moving from $8.13 billion in 2014 down to $6.05 billion in 2017 before increasing to $9.09 billion in 2019.

Net Earnings

Reported net earnings showed a fluctuating pattern with a decline from $1.82 billion in 2014 to $1.22 billion in 2015, followed by recovery and growth peaking at $2.13 billion in 2018, and then a decline to $1.75 billion in 2019. Adjusted net earnings display higher values in most years compared to reported earnings, likely due to deferred tax impacts. The adjusted earnings dipped modestly from $1.99 billion in 2014 to $1.25 billion in 2015, rose to $1.84 billion in 2017, experienced a decline in 2018 to $1.63 billion, and increased again to $1.85 billion in 2019.

Overall, the adjustments for annual reported and deferred income taxes materially affect the liabilities, equity, and earnings figures. Adjusted liabilities are consistently lower, while adjusted stockholders’ equity and net earnings tend to be higher compared to reported figures, underscoring the impact of deferred tax accounting. Significant asset growth in 2018 is evident, which may reflect acquisitions, revaluations, or other substantial changes. The fluctuations in net earnings and equity levels suggest variability in profitability and retained earnings through the period, with adjustments smoothing out some volatility.

The analysis of the financial ratios over the six-year period reveals several notable trends and differences between reported and adjusted figures.

Current Ratio

The reported and adjusted current ratios show a gradual decline from 2014 to 2018, dropping from around 0.8 to approximately 0.56, indicating a reduction in the company’s short-term liquidity over this timeframe. A slight improvement is observed in 2019, with the ratio increasing to around 0.59 in both reported and adjusted measures. The similarity between reported and adjusted ratios suggests that the impact of tax adjustments on liquidity assessment is minimal.

Net Profit Margin

Reported net profit margin experienced variability, starting at 10.19% in 2014, dipping to 6.93% in 2015, and then increasing steadily to a peak of 13.54% in 2018 before decreasing to 10.39% in 2019. Adjusted net profit margins follow a similar pattern but are consistently higher than reported margins in most years, indicating that tax adjustments positively influence profitability metrics. This suggests tax-related items temporarily suppressed reported profit margins in certain years.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios start around 0.77-0.78 in 2014 and remain relatively stable until 2017. Thereafter, a pronounced decline occurs, dropping to 0.51 in 2018 and a modest recovery to 0.56 in 2019. This pattern indicates a weakening efficiency in using assets to generate revenue, especially noticeable post-2017, and tax adjustments do not appear to materially affect this efficiency metric.

Financial Leverage

The reported financial leverage ratio shows an upward trend reaching a peak of approximately 5.04 in 2017 before declining to 4.27 in 2019. In contrast, the adjusted leverage is lower throughout the period, increasing gradually and peaking at 3.76 in 2018, then decreasing to 3.31 in 2019. The narrower range of adjusted leverage suggests that tax effects may inflate leverage ratios when not adjusted, potentially overstating financial risk.

Return on Equity (ROE)

Reported ROE fluctuates considerably, starting at 27.92% in 2014, dipping to 24.44% in 2015, then reaching a high of 38.3% in 2017, before declining to 24.85% in 2019. Adjusted ROE is consistently lower, with a less pronounced peak and a downward trend after 2017, ending near 20.35% in 2019. This discrepancy highlights the impact of deferred or current tax adjustments on equity returns, suggesting that reported figures may overstate shareholder returns during peak years.

Return on Assets (ROA)

Reported ROA slightly decreases from 7.88% in 2014 to 5.82% in 2019, with minor fluctuations. Adjusted ROA follows a comparable pattern but remains marginally higher in most years, indicating that adjustments to taxes lead to a more favorable asset return presentation. The gradual decline signals some reduction in asset profitability over time.

Overall, the data indicates that the company experienced decreasing liquidity and asset efficiency from 2014 to 2018, with some recovery by 2019. Profitability ratios show variability, with peaks around 2017-2018 followed by declines. Adjusted ratios typically present a more conservative and stable financial profile, particularly by reducing volatility in leverage and profitability measures. Tax adjustments have a meaningful effect on equity returns and profitability metrics but less so on liquidity and asset turnover ratios.

The analysis of the adjusted financial data reveals several noteworthy trends over the six-year period. Both reported and adjusted current assets exhibit fluctuations, with a general trend of decline initially, followed by stabilization and slight increases in later years. The reported current assets start at approximately 4,393,500 thousand US dollars in 2014, decrease to a low point around 3,785,700 thousand in 2015, and then gradually increase, reaching approximately 4,186,500 thousand by 2019. The adjusted current assets follow a similar trend, indicating consistency between reported and adjusted figures throughout the period.

The liquidity measured by the current ratio demonstrates a decline over the years, signaling potential challenges in meeting short-term obligations. Both reported and adjusted current ratios start relatively close to 0.81 and 0.80 respectively in 2014, then experience a downward trend with some fluctuations, dropping to 0.56 in 2018 and only marginally improving to 0.59 by 2019. This progressive decrease suggests a weakening liquidity position, underscoring the need for careful working capital management.

Current Assets

There is an observable decrease in current assets between 2014 and 2015, followed by a period of stabilization from 2016 onwards. The values between reported and adjusted data are notably close, indicating minimal adjustments for deferred income tax impacts on current assets.

Current Ratio

The drop in current ratio below 1.0 across the years implies that current liabilities exceed current assets, which might raise concerns regarding short-term financial stability. The alignment between reported and adjusted ratios suggests consistency in the assessment of liquidity after tax adjustments.

Overall, the trends highlight a diminishing liquidity position despite relatively stable current asset values. The slight recovery in current assets and current ratio towards the end of the period may point to initial efforts to improve working capital management, but the level remains below 1.0, representing continued caution for internal financial planning and operational decision-making.

Reported Net Earnings

The reported net earnings exhibit fluctuations over the six-year period. Starting at approximately 1.82 billion US dollars in 2014, there is a notable decline in 2015 to about 1.22 billion. Earnings then recover and rise to roughly 1.70 billion in 2016, followed by a slight decrease in 2017 to around 1.66 billion. A peak occurs in 2018 with net earnings reaching approximately 2.13 billion, after which there is a reduction to about 1.75 billion in 2019.

Adjusted Net Earnings

Adjusted net earnings generally follow a similar trajectory to reported earnings but differ in magnitude across years. The adjusted figures start higher than reported in 2014 at nearly 2.00 billion, fall sharply to approximately 1.25 billion in 2015, then generally trend upward to 1.82 billion in 2016 and 1.84 billion in 2017. In 2018, adjusted earnings decline to about 1.63 billion, differing from the reported peak that year, before increasing again to approximately 1.85 billion in 2019.

Reported Net Profit Margin

The reported net profit margin shows variability with an initial value of 10.19% in 2014, a marked drop to 6.93% in 2015, and recovery to a peak of 13.54% in 2018. After this peak, the margin decreases to 10.39% in 2019. This pattern indicates some volatility in profitability relative to revenue, with 2018 standing out as a particularly strong year in terms of margin performance.

Adjusted Net Profit Margin

Adjusted net profit margin data exhibits a somewhat smoother progression. Commencing at 11.15% in 2014, it declines to a low of 7.07% in 2015, then consistently improves to 10.98% in 2016 and 11.79% in 2017. The margin slightly dips to 10.33% in 2018 before rising again to 10.96% in 2019. Compared to reported margins, the adjusted margins reflect a more stable profitability trend after accounting for tax and other adjustments.

Overall Insights

Both reported and adjusted net earnings and margins demonstrate a significant dip in 2015, followed by recovery and fluctuation in the subsequent years. The peak in reported net profit margin in 2018 contrasts with a moderate dip in adjusted margin the same year, indicating the impact of adjustments on understanding profitability. The adjusted data generally suggests a smoother and possibly more reliable representation of earnings and profitability trends over the period.

The analysis of the financial data over the six-year period reveals several key trends in the company's asset base and efficiency of asset utilization.

Total Assets

Both reported and adjusted total assets show a relatively stable trend from 2014 to 2017, fluctuating in a narrow range around 21.7 to 23.1 billion US dollars. However, a significant increase occurs in 2018, with total assets rising sharply to over 30.6 billion US dollars. This elevated level is maintained into 2019, indicating a considerable expansion in the company's asset base during the latter part of the period.

Total Asset Turnover Ratios

The reported and adjusted total asset turnover ratios closely mirror each other, suggesting consistency in the measurement adjustments. These ratios exhibit a gradual decline from 0.77 and 0.78 in 2014 to 0.72 in 2017, implying a diminishing efficiency in utilizing total assets to generate revenue. This trend intensifies in 2018, with a sharp decrease to 0.51, followed by a slight recovery to 0.56 in 2019. The pronounced drop in 2018 aligns temporally with the surge in total assets, suggesting that asset growth outpaced revenue generation during this period.

Overall, the data indicates a period of steady asset levels and moderate efficiency in asset turnover in the early years, followed by a substantial increase in the asset base accompanied by a notable reduction in asset turnover efficiency in the final two years. This pattern may reflect strategic investments or acquisitions increasing asset size more rapidly than revenue growth.

Total Assets

Total assets presented a generally stable trend from 2014 to 2017, with values hovering around 21.7 to 23.1 billion US dollars. A marked increase occurred in 2018, where assets rose significantly to over 30.6 billion US dollars, maintaining a similar level in 2019 just above 30.1 billion.

Adjusted Total Assets

Adjusted total assets closely mirrored reported total assets throughout the period, indicating minimal adjustment impact on asset figures. The pattern shows stability from 2014 through 2017, followed by a substantial increase in 2018 and slight decrease in 2019, consistent with reported figures.

Stockholders’ Equity

Reported stockholders’ equity displayed a downward trend from 2014 to 2017, decreasing from approximately 6.5 billion to 4.3 billion US dollars. This trend reversed in 2018 with a marked increase to over 6.1 billion and further growth to about 7.0 billion in 2019.

Adjusted Stockholders’ Equity

Adjusted equity values were consistently higher than reported equity across all periods, suggesting significant upward revaluation when adjustments were made. Similar to the reported figures, adjusted equity declined from 2014 through 2017 but started to increase substantially in 2018 and continued rising through 2019, reaching over 9.0 billion US dollars.

Financial Leverage

Reported financial leverage exhibited an increasing trend from 2014 to 2017, rising from 3.54 to a peak of 5.04, indicating increased use of debt relative to equity during this period. This ratio slightly declined in 2018 and further decreased in 2019 to 4.27.

Adjusted Financial Leverage

Adjusted financial leverage was consistently lower than the reported leverage. It increased steadily from 2.84 in 2014 to 3.76 in 2018 before decreasing slightly to 3.31 in 2019. This pattern mirrors the reported leverage but suggests a less aggressive leverage position when accounting adjustments are considered.

Summary

The data reveals a period of relative stability in asset size and declining equity from 2014 to 2017, followed by substantial growth in both asset base and equity levels in 2018 and 2019. Financial leverage increased through 2017, signaling increasing reliance on debt financing, but started to moderate thereafter. Adjusted figures for both equity and leverage indicate a more conservative financial position when accounting for income tax impacts. The adjustments notably increase equity values and reduce leverage ratios, presenting a less leveraged and potentially stronger equity position than that suggested by reported figures alone.

Net Earnings

Reported net earnings attributable to General Mills demonstrate variation over the period from 2014 to 2019. There is a decline between 2014 and 2015, followed by a recovery through 2016 and 2017. A peak is observed in 2018 at 2,131,000 US dollars (in thousands), with a subsequent decrease to 1,752,700 in 2019. Adjusted net earnings follow a broadly similar pattern but show less volatility, with a notable lower figure in 2018 compared to 2017.

Stockholders’ Equity

Reported stockholders’ equity exhibits a declining trend from 2014 to 2017, falling from approximately 6,534,800 to 4,327,900 US dollars (in thousands). This trend reverses in 2018 and 2019, where significant increases are recorded, reaching 7,054,500 in the final year. Adjusted stockholders’ equity also shows a decrease through the mid-period, though less pronounced, and similarly experiences strong growth in the last two years, peaking at 9,085,500 in 2019.

Return on Equity (ROE)

Reported ROE indicates high profitability relative to equity in most years, with a maximum reported value of 38.3% in 2017. However, this profitability metric decreases substantially after 2017, dropping to 24.85% by 2019. Adjusted ROE values are consistently lower than reported figures, indicating the impact of adjustments on profitability assessments. Adjusted ROE declines steadily from 30.45% in 2017 to 20.35% in 2019, suggesting reduced profitability on an adjusted basis in recent years.

Overall Trends and Insights

The data reveals volatility in net earnings attributable to General Mills, with notable peaks and troughs throughout the period. Adjusted figures tend to temper this volatility, suggesting the influence of one-time items or tax adjustments in reported numbers. The equity position weakens substantially in the first half of the period but recovers strongly later, which could indicate strategic capital management or improved retained earnings. ROE trends correspond with net earnings fluctuations, showing high profitability mid-period with a decline towards the end of the timeframe. Adjusted measures consistently reflect more conservative profitability and equity valuations, underscoring the importance of considering both reported and adjusted data in performance evaluations.

Net Earnings

Reported net earnings attributable to General Mills experienced fluctuations over the analyzed period. The figure started at approximately 1.82 billion USD in 2014, dipped to around 1.22 billion in 2015, rose to 1.7 billion in 2016, remained relatively stable in 2017, peaked at over 2.13 billion in 2018, and then declined to approximately 1.75 billion in 2019. Adjusted net earnings showed a similar but smoother trend, initially at nearly 2.0 billion USD in 2014, dropping sharply in 2015 to about 1.25 billion, increasing steadily through 2017, decreasing in 2018, and rising again in 2019 to about 1.85 billion USD.

Total Assets

The reported total assets demonstrated a relatively stable trend from 2014 to 2017, ranging between approximately 21.7 to 23.1 billion USD. A significant increase occurred in 2018, with total assets rising sharply to over 30.6 billion USD, followed by a slight decrease in 2019 to about 30.1 billion USD. Adjusted total assets mirrored this pattern closely, indicating consistency in asset valuation adjustments.

Return on Assets (ROA)

Reported ROA exhibited variability, starting at 7.88% in 2014, declining to 5.56% in 2015, recovering to around 7.6%-7.82% in the subsequent two years, decreasing to below 7% in 2018, and falling further to 5.82% in 2019. Adjusted ROA followed a similar pattern but with slightly higher values early on, peaking at 8.66% in 2014, showing a downward trend to 5.31% in 2018, and slightly rebounding to 6.14% in 2019.

Insights and Trends

The data reflect volatility in profitability metrics, with both reported and adjusted net earnings and ROA showing fluctuations rather than a consistent trend. The notable increase in total assets in 2018 suggests a possible acquisition or significant capital investment during that period, which coincides with a decrease in ROA, indicating that the asset base grew faster than earnings generated. The divergence between reported and adjusted earnings, especially in certain years, suggests that adjustments related to income taxes or other accounting considerations materially impact profitability measures. Overall, the company’s asset base expanded substantially in 2018, while profitability indicators reveal pressures on returns, especially in the latter years of the data set.