Return on Assets (ROA)
since 2005
Calculation
General Mills Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings attributable to General Mills1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| May 26, 2019 | 5.82% | = | 100 | × | 1,752,700) | ÷ | 30,111,200) |
| May 27, 2018 | 6.96% | = | 100 | × | 2,131,000) | ÷ | 30,624,000) |
| May 28, 2017 | 7.60% | = | 100 | × | 1,657,500) | ÷ | 21,812,600) |
| May 29, 2016 | 7.82% | = | 100 | × | 1,697,400) | ÷ | 21,712,300) |
| May 31, 2015 | 5.56% | = | 100 | × | 1,221,300) | ÷ | 21,964,500) |
| May 25, 2014 | 7.88% | = | 100 | × | 1,824,400) | ÷ | 23,145,700) |
| May 26, 2013 | 8.19% | = | 100 | × | 1,855,200) | ÷ | 22,658,000) |
| May 27, 2012 | 7.43% | = | 100 | × | 1,567,300) | ÷ | 21,096,800) |
| May 29, 2011 | 9.63% | = | 100 | × | 1,798,300) | ÷ | 18,674,500) |
| May 30, 2010 | 8.66% | = | 100 | × | 1,530,500) | ÷ | 17,678,900) |
| May 31, 2009 | 7.30% | = | 100 | × | 1,304,400) | ÷ | 17,874,800) |
| May 25, 2008 | 6.80% | = | 100 | × | 1,294,700) | ÷ | 19,041,600) |
| May 27, 2007 | 6.29% | = | 100 | × | 1,143,900) | ÷ | 18,183,700) |
| May 28, 2006 | 5.99% | = | 100 | × | 1,090,000) | ÷ | 18,207,000) |
| May 29, 2005 | 6.86% | = | 100 | × | 1,240,000) | ÷ | 18,066,000) |
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
The return on assets (ROA) between 2005 and 2019 demonstrates a period of initial growth, followed by a phase of volatility, and concluding with a downward trend driven by asset expansion and fluctuating net earnings.
- Efficiency Peaks and Growth Phases
- A period of sustained improvement in asset efficiency occurred between 2008 and 2011, with ROA increasing from 6.80% to a peak of 9.63%. This growth was primarily driven by a steady rise in net earnings, which grew from US$ 1.29 billion to US$ 1.79 billion, while the total asset base remained relatively stable, fluctuating slightly around the US$ 18 billion to US$ 19 billion range.
- Mid-Period Volatility and Earnings Impacts
- Between 2012 and 2017, ROA exhibited increased volatility. A significant contraction is observed in 2015, where ROA dropped to 5.56%. This decline corresponds with a sharp decrease in net earnings to US$ 1.22 billion, the lowest level recorded since 2006. A subsequent recovery occurred in 2016 and 2017, with ROA returning to the 7.6% to 7.8% range as earnings stabilized above US$ 1.6 billion.
- Asset Expansion and Margin Compression
- A structural shift in the balance sheet is evident starting in 2018, characterized by a substantial increase in total assets, which rose from US$ 21.81 billion in 2017 to US$ 30.62 billion in 2018. Despite net earnings reaching a period high of US$ 2.13 billion in 2018, the massive increase in the asset base exerted downward pressure on ROA, resulting in a decline to 6.96%. This downward trend continued into 2019, with ROA falling further to 5.82% as net earnings decreased to US$ 1.75 billion while assets remained elevated at US$ 30.11 billion.
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Comparison to Competitors
General Mills Inc., ROA, long-term trends, comparison to competitors
| General Mills Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| May 26, 2019 | 5.82% | 10.33% | 6.00% | 9.31% | 16.76% |
| May 27, 2018 | 6.96% | 7.73% | 5.39% | 16.12% | 19.88% |
| May 28, 2017 | 7.60% | 1.42% | 4.63% | 6.09% | 14.05% |
| May 29, 2016 | 7.82% | 7.48% | 2.70% | 8.54% | 18.91% |
| May 31, 2015 | 5.56% | 8.16% | 11.56% | 7.83% | 20.24% |
| May 25, 2014 | 7.88% | 7.71% | 3.27% | 9.24% | 21.29% |
| May 26, 2013 | 8.19% | 9.53% | 5.40% | 8.70% | 22.47% |
| May 27, 2012 | 7.43% | 10.47% | 4.01% | 8.28% | 23.36% |
| May 29, 2011 | 9.63% | 10.72% | 3.76% | 8.84% | 24.21% |
| May 30, 2010 | 8.66% | 16.19% | 4.32% | 9.27% | 20.71% |
| May 31, 2009 | 7.30% | 14.02% | 4.53% | 14.92% | 18.35% |
| May 25, 2008 | 6.80% | 14.33% | 4.60% | 14.29% | 20.90% |
| May 27, 2007 | 6.29% | 13.82% | 3.81% | 16.34% | — |
| May 28, 2006 | 5.99% | 16.95% | 5.51% | 18.85% | — |
| May 29, 2005 | 6.86% | 16.56% | 4.57% | 12.85% | — |
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).
Comparison to Sector (Food, Beverage & Tobacco)
General Mills Inc., ROA, long-term trends, comparison to sector (food, beverage & tobacco)
| General Mills Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| May 26, 2019 | 5.82% | 10.02% |
| May 27, 2018 | 6.96% | 11.48% |
| May 28, 2017 | 7.60% | 5.50% |
| May 29, 2016 | 7.82% | 8.27% |
| May 31, 2015 | 5.56% | 10.50% |
| May 25, 2014 | 7.88% | 8.80% |
| May 26, 2013 | 8.19% | 10.00% |
| May 27, 2012 | 7.43% | 9.86% |
| May 29, 2011 | 9.63% | 9.62% |
| May 30, 2010 | 8.66% | 10.87% |
| May 31, 2009 | 7.30% | 11.66% |
| May 25, 2008 | 6.80% | 12.02% |
| May 27, 2007 | 6.29% | 9.75% |
| May 28, 2006 | 5.99% | 11.94% |
| May 29, 2005 | 6.86% | 9.75% |
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).
Comparison to Industry (Consumer Staples)
General Mills Inc., ROA, long-term trends, comparison to industry (consumer staples)
| General Mills Inc. | Consumer Staples | |
|---|---|---|
| May 26, 2019 | 5.82% | 6.41% |
| May 27, 2018 | 6.96% | 8.40% |
| May 28, 2017 | 7.60% | 7.42% |
| May 29, 2016 | 7.82% | 7.94% |
| May 31, 2015 | 5.56% | 7.69% |
| May 25, 2014 | 7.88% | 7.96% |
| May 26, 2013 | 8.19% | 8.75% |
| May 27, 2012 | 7.43% | 8.63% |
| May 29, 2011 | 9.63% | 8.89% |
| May 30, 2010 | 8.66% | 9.45% |
| May 31, 2009 | 7.30% | 9.43% |
| May 25, 2008 | 6.80% | 9.11% |
| May 27, 2007 | 6.29% | 8.07% |
| May 28, 2006 | 5.99% | 8.42% |
| May 29, 2005 | 6.86% | 9.55% |
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).