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 Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

General Mills Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

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May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Total undiscounted future operating lease payments 482,600 559,300 500,700 397,600 400,500 388,500
Discount rate1 3.34% 3.57% 3.21% 3.83% 3.54% 3.96%
 
Total present value of future operating lease payments 437,340 501,482 452,610 356,346 357,828 340,535

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).

1 Weighted-average interest rate for General Mills Inc. debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.34%
2020 120,000 2020 120,000 116,122
2021 101,700 2021 101,700 95,232
2022 85,000 2022 85,000 77,022
2023 63,800 2023 63,800 55,943
2024 49,100 2024 49,100 41,662
2025 and thereafter 63,000 2025 49,100 40,315
2026 13,900 11,044
Total: 482,600 482,600 437,340

Based on: 10-K (reporting date: 2019-05-26).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.57%
2019 137,400 2019 137,400 132,664
2020 115,700 2020 115,700 107,861
2021 92,300 2021 92,300 83,081
2022 70,900 2022 70,900 61,618
2023 51,800 2023 51,800 43,467
2024 and thereafter 91,200 2024 51,800 41,969
2025 39,400 30,822
Total: 559,300 559,300 501,482

Based on: 10-K (reporting date: 2018-05-27).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.21%
2018 118,800 2018 118,800 115,105
2019 101,700 2019 101,700 95,472
2020 80,700 2020 80,700 73,402
2021 60,700 2021 60,700 53,494
2022 49,700 2022 49,700 42,437
2023 and thereafter 89,100 2023 49,700 41,117
2024 39,400 31,582
Total: 500,700 500,700 452,610

Based on: 10-K (reporting date: 2017-05-28).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.83%
2017 107,900 2017 107,900 103,920
2018 83,500 2018 83,500 77,453
2019 67,200 2019 67,200 60,034
2020 49,600 2020 49,600 42,677
2021 39,600 2021 39,600 32,816
2022 and thereafter 49,800 2022 39,600 31,605
2023 10,200 7,840
Total: 397,600 397,600 356,346

Based on: 10-K (reporting date: 2016-05-29).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.54%
2016 108,400 2016 108,400 104,694
2017 76,200 2017 76,200 71,079
2018 56,900 2018 56,900 51,261
2019 45,000 2019 45,000 39,154
2020 32,400 2020 32,400 27,227
2021 and thereafter 81,600 2021 32,400 26,296
2022 32,400 25,397
2023 16,800 12,719
Total: 400,500 400,500 357,828

Based on: 10-K (reporting date: 2015-05-31).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.96%
2015 93,900 2015 93,900 90,323
2016 73,400 2016 73,400 67,915
2017 56,800 2017 56,800 50,553
2018 42,400 2018 42,400 36,300
2019 33,700 2019 33,700 27,752
2020 and thereafter 88,300 2020 33,700 26,695
2021 33,700 25,678
2022 20,900 15,318
Total: 388,500 388,500 340,535

Based on: 10-K (reporting date: 2014-05-25).


Adjustments to Financial Statements for Operating Leases

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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 437,340 501,482 452,610 356,346 357,828 340,535
Total assets (adjusted) 30,548,540 31,125,482 22,265,210 22,068,646 22,322,328 23,486,235
Adjustment to Total Debt
Total debt (as reported) 14,490,000 15,818,600 9,481,700 8,430,900 9,223,900 8,785,800
Add: Operating lease liability (before adoption of FASB Topic 842)2 437,340 501,482 452,610 356,346 357,828 340,535
Total debt (adjusted) 14,927,340 16,320,082 9,934,310 8,787,246 9,581,728 9,126,335

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).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

General Mills Inc., adjusted financial ratios

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May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Total Asset Turnover1
Reported total asset turnover 0.56 0.51 0.72 0.76 0.80 0.77
Adjusted total asset turnover 0.55 0.51 0.70 0.75 0.79 0.76
Debt to Equity2
Reported debt to equity 2.05 2.58 2.19 1.71 1.85 1.34
Adjusted debt to equity 2.12 2.66 2.30 1.78 1.92 1.40
Return on Assets3 (ROA)
Reported ROA 5.82% 6.96% 7.60% 7.82% 5.56% 7.88%
Adjusted ROA 5.74% 6.85% 7.44% 7.69% 5.47% 7.77%

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).

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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. General Mills Inc. adjusted debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROA A profitability ratio calculated as 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 Total Asset Turnover

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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 Operating Leases
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 30,548,540 31,125,482 22,265,210 22,068,646 22,322,328 23,486,235
Activity Ratio
Adjusted total asset turnover2 0.55 0.51 0.70 0.75 0.79 0.76

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 ÷ 30,548,540 = 0.55

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 Debt to Equity

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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 debt 14,490,000 15,818,600 9,481,700 8,430,900 9,223,900 8,785,800
Stockholders’ equity 7,054,500 6,141,100 4,327,900 4,930,200 4,996,700 6,534,800
Solvency Ratio
Debt to equity1 2.05 2.58 2.19 1.71 1.85 1.34
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 14,927,340 16,320,082 9,934,310 8,787,246 9,581,728 9,126,335
Stockholders’ equity 7,054,500 6,141,100 4,327,900 4,930,200 4,996,700 6,534,800
Solvency Ratio
Adjusted debt to equity2 2.12 2.66 2.30 1.78 1.92 1.40

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 Debt to equity = Total debt ÷ Stockholders’ equity
= 14,490,000 ÷ 7,054,500 = 2.05

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 14,927,340 ÷ 7,054,500 = 2.12

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. General Mills Inc. adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Assets (ROA)

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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 Operating Leases
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 30,548,540 31,125,482 22,265,210 22,068,646 22,322,328 23,486,235
Profitability Ratio
Adjusted ROA2 5.74% 6.85% 7.44% 7.69% 5.47% 7.77%

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 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 ÷ 30,548,540 = 5.74%

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