Common-Size Balance Sheet: Assets
Quarterly Data
General Mills Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2019-11-24), 10-Q (reporting date: 2019-08-25), 10-K (reporting date: 2019-05-26), 10-Q (reporting date: 2019-02-24), 10-Q (reporting date: 2018-11-25), 10-Q (reporting date: 2018-08-26), 10-K (reporting date: 2018-05-27), 10-Q (reporting date: 2018-02-25), 10-Q (reporting date: 2017-11-26), 10-Q (reporting date: 2017-08-27), 10-K (reporting date: 2017-05-28), 10-Q (reporting date: 2017-02-26), 10-Q (reporting date: 2016-11-27), 10-Q (reporting date: 2016-08-28), 10-K (reporting date: 2016-05-29), 10-Q (reporting date: 2016-02-28), 10-Q (reporting date: 2015-11-29), 10-Q (reporting date: 2015-08-30), 10-K (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-22), 10-Q (reporting date: 2014-11-23), 10-Q (reporting date: 2014-08-24), 10-K (reporting date: 2014-05-25), 10-Q (reporting date: 2014-02-23), 10-Q (reporting date: 2013-11-24), 10-Q (reporting date: 2013-08-25).
The financial data reveals several key trends in asset composition over the analyzed periods. The company’s current assets, represented as a percentage of total assets, experienced a general decline from around 20.45% in August 2013 to approximately 14.71% by November 2019. This decline was particularly notable beginning in early 2018, where current assets dropped sharply to levels around 13-14%, indicating a possible strategic shift toward a higher proportion of noncurrent assets.
Cash and cash equivalents showed some volatility, peaking intermittently near 4.3%-4.4% between late 2016 and early 2018, but then declining notably to levels below 2% from mid-2018 onward. This reduction suggests a tightening in liquidity or a shift in cash management practices.
Receivables also declined gradually over time, from about 7.14% in 2013 to around 5.82% at the end of the period. Such a trend could reflect improved collection processes or a decrease in credit sales. Inventories followed a similar downward trend, starting near 7.73% and falling to roughly 5.65%. This decrease may indicate better inventory management or a shift in the product mix that requires less inventory.
In terms of noncurrent assets, goodwill consistently constituted the largest portion, maintaining around 37-40% through 2013 to early 2018 and increasing sharply to above 45% from mid-2018 onward. Such an increase in goodwill percentage points to acquisitions or revaluations contributing to the asset base. Other intangible assets held steady around 20-21% initially but also showed a rise after 2018, reaching near 23-24%, further supporting the presence of intangible investments or acquisitions.
Land, buildings, and equipment showed a gradual decrease from about 16.52% in 2013 to around 11.78% by late 2019, reflecting possible asset sales, depreciation outpacing new investments, or shifts away from capital-intensive assets. Other assets fluctuated moderately within 3-5% but showed some increase toward the latter years.
Overall, the data indicates a strategic pivot toward an asset structure heavily weighted in goodwill and other intangibles, with a simultaneous reduction in current assets, tangible fixed assets, and liquidity ratios. This could imply increased investment in acquisitions, brands, or intellectual properties alongside tightened working capital management.
- Current assets
- Decreased from approximately 20.45% to 14.71% of total assets, indicating a reduced emphasis on short-term assets.
- Cash and cash equivalents
- Varied with peaks around 4.3%-4.4%, then declined after 2018 to below 2%, suggesting reduced liquidity or cash holdings.
- Receivables
- Gradually declined from about 7.14% to 5.82%, possibly reflecting improved collections or lower credit sales.
- Inventories
- Decreased steadily from 7.73% to roughly 5.65%, which may indicate inventory optimization or change in product mix.
- Goodwill
- Rose significantly from around 37-40% to over 45%, indicating increased acquisitions or intangible asset valuation.
- Other intangible assets
- Held steady initially, then increased from about 20% to near 24%, consistent with growth in intangible asset investment.
- Land, buildings, and equipment
- Declined from approximately 16.52% to 11.78%, suggesting decreased investment or higher depreciation effects on fixed assets.
- Other assets
- Fluctuated moderately around 3-5%, with some increase in the latter years.
- Noncurrent assets
- Increased from near 79.5% to over 85%, reflecting a greater proportion of the asset base devoted to long-term assets.