Operating Profit Margin
since 2005
Calculation
General Mills Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| May 26, 2019 | 14.92% | = | 100 | × | 2,515,900) | ÷ | 16,865,200) |
| May 27, 2018 | 15.94% | = | 100 | × | 2,509,300) | ÷ | 15,740,400) |
| May 28, 2017 | 16.43% | = | 100 | × | 2,566,400) | ÷ | 15,619,800) |
| May 29, 2016 | 16.35% | = | 100 | × | 2,707,400) | ÷ | 16,563,100) |
| May 31, 2015 | 11.78% | = | 100 | × | 2,077,300) | ÷ | 17,630,300) |
| May 25, 2014 | 16.51% | = | 100 | × | 2,957,400) | ÷ | 17,909,600) |
| May 26, 2013 | 16.04% | = | 100 | × | 2,851,800) | ÷ | 17,774,100) |
| May 27, 2012 | 15.38% | = | 100 | × | 2,562,400) | ÷ | 16,657,900) |
| May 29, 2011 | 18.65% | = | 100 | × | 2,774,500) | ÷ | 14,880,200) |
| May 30, 2010 | 17.61% | = | 100 | × | 2,606,100) | ÷ | 14,796,500) |
| May 31, 2009 | 15.81% | = | 100 | × | 2,322,900) | ÷ | 14,691,300) |
| May 25, 2008 | 16.32% | = | 100 | × | 2,227,800) | ÷ | 13,652,100) |
| May 27, 2007 | 16.54% | = | 100 | × | 2,057,800) | ÷ | 12,441,500) |
| May 28, 2006 | 16.89% | = | 100 | × | 1,966,000) | ÷ | 11,640,000) |
| May 29, 2005 | 20.19% | = | 100 | × | 2,270,000) | ÷ | 11,244,000) |
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), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
1 US$ in thousands
Between 2005 and 2019, the operating profit margin exhibited significant volatility, characterized by a general downward trajectory from a peak of 20.19% in 2005 to 14.92% in 2019. While net sales grew from 11.24 billion in 2005 to a peak of 17.91 billion in 2014, operating profitability did not scale proportionally, indicating long-term pressure on operational efficiency.
- Initial Compression and Recovery (2005–2011)
- A period of margin compression occurred between 2005 and 2009, during which the ratio fell from 20.19% to 15.81%. This trend reversed between 2010 and 2011, with the margin recovering to 18.65%, marking the highest efficiency level achieved since the beginning of the analyzed period.
- Operational Volatility and Trough (2012–2015)
- A sharp decline in profitability is observed starting in 2012, culminating in the period's lowest operating profit margin of 11.78% in 2015. This trough was driven by a substantial decrease in operating profit to 2.08 billion in 2015, despite net sales remaining robust at 17.63 billion, suggesting a spike in operating expenses or a contraction in gross margins during that fiscal year.
- Stabilization and Final Decline (2016–2019)
- Profitability margins saw a sharp recovery in 2016, stabilizing between 16.35% and 16.43% through 2017. However, a subsequent downward trend emerged in the final two years of the period, with the margin decreasing to 15.94% in 2018 and further to 14.92% in 2019, reflecting a return to the margin compression patterns observed in earlier cycles.
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Comparison to Competitors
General Mills Inc., operating profit margin, long-term trends, comparison to competitors
| General Mills Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| May 26, 2019 | 14.92% | 27.06% | 14.86% | 15.32% | 35.33% |
| May 27, 2018 | 15.94% | 27.31% | 12.77% | 15.64% | 38.40% |
| May 28, 2017 | 16.43% | 21.18% | 13.54% | 16.54% | 40.01% |
| May 29, 2016 | 16.35% | 20.61% | 9.91% | 15.58% | 40.53% |
| May 31, 2015 | 11.78% | 19.70% | 30.02% | 13.25% | 39.65% |
| May 25, 2014 | 16.51% | 21.11% | 9.47% | 14.37% | 39.31% |
| May 26, 2013 | 16.04% | 21.83% | 11.25% | 14.61% | 43.29% |
| May 27, 2012 | 15.38% | 22.45% | 10.39% | 13.91% | 44.18% |
| May 29, 2011 | 18.65% | 21.82% | 12.25% | 14.48% | 42.90% |
| May 30, 2010 | 17.61% | 24.06% | 11.51% | 14.41% | 41.16% |
| May 31, 2009 | 15.81% | 26.56% | 13.68% | 18.61% | 40.10% |
| May 25, 2008 | 16.32% | 26.44% | 9.04% | 16.03% | 39.87% |
| May 27, 2007 | 16.54% | 25.13% | 11.63% | 18.16% | — |
| May 28, 2006 | 16.89% | 26.19% | 13.17% | 18.33% | — |
| May 29, 2005 | 20.19% | 26.34% | 13.93% | 18.19% | — |
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), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).