General Mills Inc. (NYSE:GIS)

The analysis of the financial data over the period from May 2014 to May 2019 reveals the following trends in current assets and adjusted current assets:

Current Assets

Current assets experienced a decline from 4,393,500 thousand US dollars in May 2014 to 3,785,700 thousand US dollars in May 2015. Following this decrease, a gradual recovery occurred, with values rising to 4,186,500 thousand US dollars by May 2019. This indicates a period of contraction followed by steady growth over the subsequent years.

Adjusted Current Assets

Adjusted current assets showed a similar pattern, decreasing from 4,557,300 thousand US dollars in May 2014 to 3,925,100 thousand US dollars in May 2015. Subsequently, there was a consistent upward trend, reaching 4,428,800 thousand US dollars by May 2019. The adjusted figures remain consistently higher than the unadjusted current assets throughout the period, suggesting the inclusion of additional components in the adjusted calculation.

Overall, both current assets and adjusted current assets demonstrate an initial decline in the 2014-2015 period, followed by a sustained recovery and growth trend from 2015 to 2019. This pattern reflects possible operational or market challenges affecting liquidity in the earlier period, with a return to strengthening asset positions in later years.

The financial data reveals the following trends over the six-year period:

Total assets

Total assets exhibited a downward trend from the fiscal year ending May 25, 2014, through to May 29, 2016, decreasing from approximately 23.15 billion US dollars to around 21.71 billion US dollars. This was followed by relative stabilization with minimal variation until May 28, 2017. A notable surge occurred in the fiscal year ending May 27, 2018, where total assets increased substantially to approximately 30.62 billion US dollars. This elevated level was largely maintained into May 26, 2019, albeit with a slight reduction to 30.11 billion US dollars.

Adjusted total assets

The adjusted total assets data closely mirrors the pattern observed in total assets, reflecting a decline from about 23.65 billion US dollars in 2014 to roughly 22.32 billion US dollars in 2016. Subsequently, these assets stabilized and then experienced a pronounced increase in 2018 to nearly 31.37 billion US dollars. The year 2019 saw a modest decrease to approximately 30.79 billion US dollars. The adjusted figures consistently exceed the total assets reported, indicating the inclusion of additional valuations or adjustments not present in the base total assets figure.

Overall, the asset base demonstrated a phase of contraction in the early years, followed by stability and then a significant expansion starting in 2018, which remained relatively intact in the subsequent year. The alignment between total and adjusted assets suggests consistency in underlying asset valuation, with adjustments systematically increasing reported amounts.

The analysis of current liabilities over the six-year period indicates some fluctuations with an overall increasing tendency towards the end. Specifically, the current liabilities decreased from approximately 5,423 million in 2014 to around 4,890 million in 2015. Following this, there was a slight increase observed in 2016, reaching about 5,015 million. A continued upward trend is seen in 2017, where liabilities rose to approximately 5,331 million.

A significant increase occurred in 2018, when current liabilities surged to approximately 7,342 million, representing the highest level in the period analyzed. This elevated level remained relatively stable in 2019, with a slight decline to approximately 7,087 million.

Adjusted current liabilities exhibit a similar pattern to that of current liabilities, starting at around 5,420 million in 2014 and decreasing to approximately 4,769 million in 2015. There is a small recovery in 2016 with adjusted liabilities rising to about 4,938 million, followed by an increase in 2017 to roughly 5,246 million. The sharp rise is also present in 2018, with adjusted current liabilities reaching approximately 7,275 million, and a marginal decrease to 7,051 million in 2019.

Overall, both current liabilities and adjusted current liabilities track closely throughout the years. The substantial increase in 2018 merits attention, as it could imply changes in short-term obligations or liquidity management strategies. The relatively stable yet elevated levels in 2019 compared to earlier years suggest a new baseline of higher liabilities. Further investigation could identify the drivers behind the sharp increase during 2018, such as operational changes or shifts in debt management policies.

Trend Overview

General upward trend in current liabilities after 2015, with a notable spike in 2018.

Year-to-Year Fluctuations

Decrease in liabilities from 2014 to 2015, moderate gains through 2017, followed by significant increase in 2018, and relative stabilization in 2019.

Adjusted Liabilities

Adjusted current liabilities closely mirror the pattern of reported current liabilities, indicating consistency in adjustments and reporting standards.

Implications

The increase in liabilities could impact liquidity and short-term financial flexibility; further analysis suggested.

The analysis of the financial data reveals significant trends in the liability figures over the observed six-year period.

Total Liabilities

The total liabilities showed a gradual increase from US$15,156,200 thousand in May 2014 to US$16,216,200 thousand in May 2017. Thereafter, a marked increase occurred in May 2018, where total liabilities surged to US$23,355,400 thousand, representing a significant jump. In the subsequent year, total liabilities slightly decreased to US$22,191,800 thousand but remained substantially higher than the earlier years.

Adjusted Total Liabilities

Adjusted total liabilities followed a similar pattern, starting from US$13,827,235 thousand in May 2014 and increasing steadily to US$14,864,410 thousand in May 2017. A sharp increase was noted in May 2018, where the figure rose to US$21,786,282 thousand. The adjusted total liabilities then decreased somewhat in May 2019 to US$20,561,640 thousand but still stayed significantly elevated compared to the initial years.

Observations and Insights

Both total liabilities and adjusted total liabilities exhibited moderate growth during the first four years. However, a notable spike occurred in the fiscal year ending May 27, 2018, indicating a considerable increase in the company’s obligations. This could suggest substantial financing activities such as debt issuance or acquisition-related liabilities recognized during this period. The decline following May 2018, although moderate, indicates some liability repayments or adjustments. Overall, the company’s leverage position appears to have increased substantially post-2017, which warrants further analysis regarding the impact on financial stability and risk.

The analysis of the equity-related data over the six-year period reveals significant fluctuations in both stockholders' equity and adjusted total equity.

Stockholders’ equity

The stockholders' equity demonstrates a declining trend from 6,534,800 thousand US dollars in May 2014 to a low point of 4,327,900 thousand US dollars in May 2017. This represents a substantial decrease over three consecutive years. Following 2017, there is a marked recovery, with equity increasing to 6,141,100 thousand US dollars in May 2018 and further rising to 7,054,500 thousand US dollars in May 2019, resulting in an overall growth beyond the initial 2014 level by the end of the period.

Adjusted total equity

Adjusted total equity follows a similar trend to stockholders' equity but at higher absolute values. It starts at 9,822,800 thousand US dollars in May 2014, decreases year-over-year to reach a minimum of 7,634,200 thousand US dollars in May 2017. Post-2017, there is a pronounced upward movement, with adjusted total equity rising sharply to 9,580,800 thousand US dollars in May 2018 and continuing its ascent to 10,229,200 thousand US dollars in May 2019. This represents a recovery that not only offsets the earlier declines but also achieves a new peak for the period analyzed.

Overall, both equity measures exhibit a downward trend in the first half of the timeline, followed by a solid turnaround and growth in the latter years. The initial decline could be indicative of challenges affecting the company's capital structure or retained earnings, whereas the subsequent rise suggests successful efforts in strengthening equity positions, possibly through retained earnings accumulation, capital injections, or other financial strategies enhancing shareholder value.

The financial data reveals several notable trends in the company’s reported debt, equity, and capital over the six-year period from May 2014 to May 2019.

Total Reported Debt

The total reported debt shows moderate fluctuations between 2014 and 2017, ranging from approximately $8.4 billion to $9.5 billion. However, there is a significant surge in 2018, where debt increases sharply to about $15.8 billion, followed by a slight decrease to $14.5 billion in 2019. This pattern suggests a substantial increase in leverage or borrowing during 2018, with some debt reduction in the subsequent year.

Stockholders’ Equity

Stockholders' equity declines steadily from $6.5 billion in 2014 to a low of around $4.3 billion in 2017. From 2018 onward, equity recovers strongly, rising first to approximately $6.1 billion and then further to $7.1 billion by 2019. This trend indicates an erosion of equity initially, potentially due to retained losses or share repurchases, followed by a period of strengthening shareholder value.

Total Reported Capital

Total reported capital, which aggregates debt and equity, shows a general downward trend between 2014 and 2016, moving from about $15.3 billion to $13.4 billion. This is followed by a slight increase in 2017 and a dramatic rise to nearly $22 billion in 2018, with a minor decline to $21.5 billion in 2019. The increase in total reported capital mirrors the dynamics observed in debt and equity, largely driven by the surge in debt in 2018.

Adjusted Total Debt

Adjusted total debt figures broadly parallel reported debt trends but are consistently somewhat higher across all years. It rises modestly from just under $9.1 billion in 2014 to nearly $10 billion in 2017. The trend then sharply ascends to over $16.3 billion in 2018, before receding to $14.9 billion in 2019. This measure reinforces the observation of increased leverage starting in 2018.

Adjusted Total Equity

Adjusted total equity also follows a pattern similar to reported equity but at higher absolute values. It decreases from approximately $9.8 billion in 2014 to $7.6 billion in 2017, indicating a downward trend in adjusted shareholder funds. Subsequently, it rises to about $9.6 billion in 2018 and further to $10.2 billion in 2019, reflecting an improvement in equity position during the latter years.

Adjusted Total Capital

Adjusted total capital experiences a decrease from roughly $18.9 billion in 2014 to $16.7 billion in 2016, followed by an increase to approximately $17.6 billion in 2017. The metric then jumps sharply to around $25.9 billion in 2018, declining slightly to $25.2 billion in 2019. These figures indicate an expansion of the company's capital base mainly driven by increased adjusted debt after 2017, with some stabilization afterward.

In summary, the period under review is characterized by a relatively stable financial structure until 2017, followed by a significant increase in debt levels in 2018. Equity measures, both reported and adjusted, experience an initial decline but recover in the final two years. The total capital, in both reported and adjusted terms, reflects these movements prominently, implying strategic borrowing or capital restructuring occurred around 2018, which affected the company’s leverage and equity positions distinctly.

Net Earnings Attributable to General Mills

The net earnings showed a fluctuating trend over the six-year period. Starting at approximately 1.82 billion US dollars in May 2014, the earnings declined significantly to about 1.22 billion in May 2015. This was followed by a recovery in the subsequent years, reaching around 1.70 billion in May 2016 and slightly decreasing to 1.66 billion in May 2017. An uptick occurred in May 2018, with earnings increasing to approximately 2.13 billion, before falling again to about 1.75 billion in May 2019. Overall, the data indicates a volatile earnings pattern with no consistent upward or downward trend.

Adjusted Net Earnings (Including Earnings Attributable to Redeemable and Noncontrolling Interests)

The adjusted net earnings present a more erratic trajectory. The initial value in May 2014 was about 2.38 billion US dollars, followed by a sharp negative value of roughly -28.8 million in May 2015, indicating a substantial loss or adjustment in that year. Subsequently, the adjusted earnings returned to positive figures, reaching approximately 1.53 billion in May 2016 and peaking around 2.22 billion in May 2017. Thereafter, a downward trend is observed with adjusted earnings declining to roughly 1.87 billion in May 2018 and further to 1.57 billion in May 2019. The adjusted net earnings thus exhibit considerable volatility, impacted potentially by noncontrolling interests or adjustments affecting overall profitability.

Comparative Observations

Comparing the net earnings attributable to General Mills with the adjusted net earnings reveals significant discrepancies, particularly in 2015 when adjusted net earnings swung into negative territory while net earnings remained positive but at a lower level. This suggests that items excluded from net earnings or specific adjustments related to redeemable and noncontrolling interests can have a material effect on reported profitability. In other years, adjusted earnings generally exceed net earnings, reflecting inclusions of additional components in the adjusted figures. The pattern underscores the importance of considering both metrics to gain a comprehensive understanding of the company's financial performance over the period analyzed.