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 Inventory

Microsoft Excel

Inventory Disclosure

General Mills Inc., balance sheet: inventory

US$ in thousands

Microsoft Excel
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Raw materials and packaging 434,900 400,000 395,400 397,300 390,800 419,000
Finished goods 1,245,900 1,364,200 1,224,300 1,163,100 1,268,600 1,260,200
Grain 92,000 91,200 73,000 72,600 95,700 97,100
Excess of FIFO over LIFO cost (213,500) (213,200) (209,100) (219,300) (214,200) (216,900)
Inventories 1,559,300 1,642,200 1,483,600 1,413,700 1,540,900 1,559,400

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
Inventories Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. General Mills Inc. inventories increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Adjustment to Inventory: Conversion from LIFO to FIFO

Adjusting LIFO Inventory to FIFO (Current) Cost

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 Inventories
Inventories at LIFO (as reported) 1,559,300 1,642,200 1,483,600 1,413,700 1,540,900 1,559,400
Add: Inventory LIFO reserve 213,500 213,200 209,100 219,300 214,200 216,900
Inventories at FIFO (adjusted) 1,772,800 1,855,400 1,692,700 1,633,000 1,755,100 1,776,300
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
Add: Inventory LIFO reserve 213,500 213,200 209,100 219,300 214,200 216,900
Current assets (adjusted) 4,400,000 4,336,900 4,270,500 4,156,500 3,999,900 4,610,400
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
Add: Inventory LIFO reserve 213,500 213,200 209,100 219,300 214,200 216,900
Total assets (adjusted) 30,324,700 30,837,200 22,021,700 21,931,600 22,178,700 23,362,600
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
Add: Inventory LIFO reserve 213,500 213,200 209,100 219,300 214,200 216,900
Stockholders’ equity (adjusted) 7,268,000 6,354,300 4,537,000 5,149,500 5,210,900 6,751,700
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: Increase (decrease) in inventory LIFO reserve 300 4,100 (10,200) 5,100 (2,700) (4,900)
Net earnings attributable to General Mills (adjusted) 1,753,000 2,135,100 1,647,300 1,702,500 1,218,600 1,819,500

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. inventory value on May 26, 2019 would be $1,772,800 (in thousands) if the FIFO inventory method was used instead of LIFO. General Mills Inc. inventories, valued on a LIFO basis, on May 26, 2019 were $1,559,300. General Mills Inc. inventories would have been $213,500 higher than reported on May 26, 2019 if the FIFO method had been used instead.

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

Adjusted Financial Ratios: LIFO vs. FIFO (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
Current Ratio
Reported current ratio (LIFO) 0.59 0.56 0.76 0.79 0.77 0.81
Adjusted current ratio (FIFO) 0.62 0.59 0.80 0.83 0.82 0.85
Net Profit Margin
Reported net profit margin (LIFO) 10.39% 13.54% 10.61% 10.25% 6.93% 10.19%
Adjusted net profit margin (FIFO) 10.39% 13.56% 10.55% 10.28% 6.91% 10.16%
Total Asset Turnover
Reported total asset turnover (LIFO) 0.56 0.51 0.72 0.76 0.80 0.77
Adjusted total asset turnover (FIFO) 0.56 0.51 0.71 0.76 0.79 0.77
Financial Leverage
Reported financial leverage (LIFO) 4.27 4.99 5.04 4.40 4.40 3.54
Adjusted financial leverage (FIFO) 4.17 4.85 4.85 4.26 4.26 3.46
Return on Equity (ROE)
Reported ROE (LIFO) 24.85% 34.70% 38.30% 34.43% 24.44% 27.92%
Adjusted ROE (FIFO) 24.12% 33.60% 36.31% 33.06% 23.39% 26.95%
Return on Assets (ROA)
Reported ROA (LIFO) 5.82% 6.96% 7.60% 7.82% 5.56% 7.88%
Adjusted ROA (FIFO) 5.78% 6.92% 7.48% 7.76% 5.49% 7.79%

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 current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. General Mills Inc. 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 revenue. General Mills Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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 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. adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. General Mills Inc. adjusted ROE deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Mills Inc. adjusted ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

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

Adjusted Current Ratio

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)
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
Liquidity Ratio
Current ratio1 0.59 0.56 0.76 0.79 0.77 0.81
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets 4,400,000 4,336,900 4,270,500 4,156,500 3,999,900 4,610,400
Current liabilities 7,087,100 7,341,900 5,330,800 5,014,700 4,890,100 5,423,500
Liquidity Ratio
Adjusted current ratio2 0.62 0.59 0.80 0.83 0.82 0.85

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

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 4,400,000 ÷ 7,087,100 = 0.62

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

Adjusted Net Profit Margin

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
Net sales 16,865,200 15,740,400 15,619,800 16,563,100 17,630,300 17,909,600
Profitability Ratio
Net profit margin1 10.39% 13.54% 10.61% 10.25% 6.93% 10.19%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to General Mills 1,753,000 2,135,100 1,647,300 1,702,500 1,218,600 1,819,500
Net sales 16,865,200 15,740,400 15,619,800 16,563,100 17,630,300 17,909,600
Profitability Ratio
Adjusted net profit margin2 10.39% 13.56% 10.55% 10.28% 6.91% 10.16%

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 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 × 1,753,000 ÷ 16,865,200 = 10.39%

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

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: After Conversion from LIFO to FIFO
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 30,324,700 30,837,200 22,021,700 21,931,600 22,178,700 23,362,600
Activity Ratio
Adjusted total asset turnover2 0.56 0.51 0.71 0.76 0.79 0.77

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 ÷ 30,324,700 = 0.56

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets 30,324,700 30,837,200 22,021,700 21,931,600 22,178,700 23,362,600
Adjusted stockholders’ equity 7,268,000 6,354,300 4,537,000 5,149,500 5,210,900 6,751,700
Solvency Ratio
Adjusted financial leverage2 4.17 4.85 4.85 4.26 4.26 3.46

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
= 30,324,700 ÷ 7,268,000 = 4.17

Solvency 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. adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to General Mills 1,753,000 2,135,100 1,647,300 1,702,500 1,218,600 1,819,500
Adjusted stockholders’ equity 7,268,000 6,354,300 4,537,000 5,149,500 5,210,900 6,751,700
Profitability Ratio
Adjusted ROE2 24.12% 33.60% 36.31% 33.06% 23.39% 26.95%

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 × Adjusted net earnings attributable to General Mills ÷ Adjusted stockholders’ equity
= 100 × 1,753,000 ÷ 7,268,000 = 24.12%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. General Mills Inc. adjusted ROE deteriorated from 2017 to 2018 and from 2018 to 2019.

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to General Mills 1,753,000 2,135,100 1,647,300 1,702,500 1,218,600 1,819,500
Adjusted total assets 30,324,700 30,837,200 22,021,700 21,931,600 22,178,700 23,362,600
Profitability Ratio
Adjusted ROA2 5.78% 6.92% 7.48% 7.76% 5.49% 7.79%

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 × Adjusted net earnings attributable to General Mills ÷ Adjusted total assets
= 100 × 1,753,000 ÷ 30,324,700 = 5.78%

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