Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
General Mills Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity (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 capital structure of the organization exhibited a notable shift toward increased leverage between August 2013 and November 2019. Total liabilities as a percentage of total liabilities and equity rose from 63.87% to a peak of 76.36% in August 2017, before moderating to 71.87% by the end of the period. This trend reflects a systemic reduction in the proportional reliance on equity to fund assets.
- Debt and Liability Trends
- Long-term debt, excluding the current portion, served as the primary driver of increased leverage, growing from 25.77% in August 2013 to a peak of 41.45% in August 2018. Noncurrent liabilities generally trended upward, moving from approximately 40% to over 50% of the total balance sheet in the latter half of the observed timeframe.
- Current liabilities remained relatively stable, typically fluctuating between 20% and 28%. However, accounts payable showed a gradual increase, rising from 6.21% to 10.06%, suggesting a potential increase in the utilization of trade credit.
- Notes payable and the current portion of long-term debt exhibited higher volatility, reflecting periodic fluctuations in short-term financing and scheduled debt maturities.
- Equity and Shareholder Value Dynamics
- Total equity decreased from 31.79% in August 2013 to a low of 19.28% in August 2017, subsequently recovering to 26.34% by November 2019. This compression was largely influenced by aggressive treasury stock activity.
- Common stock in treasury grew significantly more negative, reaching -37.23% in August 2017, which indicates substantial share buyback programs. A sharp reversal occurred in May 2018, where treasury stock shifted to -23.40% and retained earnings dropped from 64.74% to 47.22%, signaling a major capital event or accounting adjustment.
- Retained earnings generally trended upward from 48.63% to 60.42% through February 2018, demonstrating consistent profit accumulation prior to the aforementioned May 2018 adjustment.
- Comprehensive Financial Position
- Accumulated other comprehensive loss expanded from -7.28% in 2013 to a peak of -11.48% in February 2018, indicating unrealized losses that weighed on total equity throughout the period.
- The overall financial trajectory indicates a transition from a more equity-heavy balance sheet to one characterized by higher long-term debt and a reduced equity base, balanced by an increase in retained earnings and strategic share repurchases.
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