General Mills Inc. (GIS)

All inventories in the United States other than grain are valued at the lower of cost, using the last-in, first-out (LIFO) method, or market. Grain inventories are valued at net realizable value, and all related cash contracts and derivatives are valued at fair value, with all net changes in value recorded in earnings currently.

Inventories outside of the United States are generally valued at the lower of cost, using the first-in, first-out (FIFO) method, or net realizable value.

Shipping costs associated with the distribution of finished product to General Mills' customers are recorded as cost of sales, and are recognized when the related finished product is shipped to and accepted by the customer.

Source: General Mills Inc., Annual Report

General Mills Inc., Statement of Financial Position, Inventory

USD $ in thousands

Source: Based on data from General Mills Inc. Annual Reports

Item	Description	The company
Raw materials and packaging	Aggregated amount of unprocessed materials to be used in manufacturing or production process and supplies that will be consumed.	General Mills Inc.'s raw materials and packaging declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Finished goods	Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale.	General Mills Inc.'s finished goods increased from 2016 to 2017 and from 2017 to 2018.
Inventories	Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer).	General Mills Inc.'s inventories increased from 2016 to 2017 and from 2017 to 2018.

Adjusting LIFO Inventory to FIFO (Current) Cost

USD $ in thousands

General Mills Inc.'s inventory value on May 27, 2018 would be $1,855,400  (in thousands) if the FIFO inventory method was used instead of LIFO. General Mills Inc.'s inventories, valued on a LIFO basis, on May 27, 2018 were $1,642,200 . General Mills Inc.'s inventories would have been $213,200  higher than reported on May 27, 2018 if the FIFO method had been used instead.

General Mills Inc., adjusted ratios

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	General Mills Inc.'s adjusted current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	General Mills Inc.'s adjusted net profit margin improved from 2016 to 2017 and from 2017 to 2018.
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 2016 to 2017 and from 2017 to 2018.
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 2016 to 2017 but then slightly declined from 2017 to 2018.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	General Mills Inc.'s adjusted ROE improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	General Mills Inc.'s adjusted ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

2018 Calculations

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	General Mills Inc.'s adjusted current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

2018 Calculations

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	General Mills Inc.'s adjusted net profit margin improved from 2016 to 2017 and from 2017 to 2018.

2018 Calculations

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 2016 to 2017 and from 2017 to 2018.

2018 Calculations

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 2016 to 2017 but then slightly declined from 2017 to 2018.

2018 Calculations

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 improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

2018 Calculations

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 2016 to 2017 and from 2017 to 2018.