Return on Equity (ROE)
since 2005
Calculation
General Mills Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings attributable to General Mills1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| May 26, 2019 | 24.85% | = | 100 | × | 1,752,700) | ÷ | 7,054,500) |
| May 27, 2018 | 34.70% | = | 100 | × | 2,131,000) | ÷ | 6,141,100) |
| May 28, 2017 | 38.30% | = | 100 | × | 1,657,500) | ÷ | 4,327,900) |
| May 29, 2016 | 34.43% | = | 100 | × | 1,697,400) | ÷ | 4,930,200) |
| May 31, 2015 | 24.44% | = | 100 | × | 1,221,300) | ÷ | 4,996,700) |
| May 25, 2014 | 27.92% | = | 100 | × | 1,824,400) | ÷ | 6,534,800) |
| May 26, 2013 | 27.80% | = | 100 | × | 1,855,200) | ÷ | 6,672,200) |
| May 27, 2012 | 24.41% | = | 100 | × | 1,567,300) | ÷ | 6,421,700) |
| May 29, 2011 | 28.25% | = | 100 | × | 1,798,300) | ÷ | 6,365,500) |
| May 30, 2010 | 28.33% | = | 100 | × | 1,530,500) | ÷ | 5,402,900) |
| May 31, 2009 | 25.21% | = | 100 | × | 1,304,400) | ÷ | 5,174,700) |
| May 25, 2008 | 20.83% | = | 100 | × | 1,294,700) | ÷ | 6,215,800) |
| May 27, 2007 | 21.51% | = | 100 | × | 1,143,900) | ÷ | 5,319,100) |
| May 28, 2006 | 18.88% | = | 100 | × | 1,090,000) | ÷ | 5,772,000) |
| May 29, 2005 | 21.85% | = | 100 | × | 1,240,000) | ÷ | 5,676,000) |
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 equity (ROE) demonstrates a period of expansion and volatility between 2005 and 2019. After a relatively stable start, the ratio trended upward, reaching a peak in 2017 before experiencing a sharp decline in 2019.
- Profitability Trends
- Net earnings increased from 1.24 billion US dollars in 2005 to 1.75 billion US dollars in 2019. The highest earnings were recorded in 2018 at 2.13 billion US dollars. This general growth in net income provided a baseline for ROE expansion, although earnings volatility was present, most notably during a dip in 2015.
- Equity Base Dynamics
- Stockholders' equity did not follow a linear path, starting at 5.68 billion US dollars in 2005 and ending at its highest point of 7.05 billion US dollars in 2019. A notable contraction in the equity base occurred between 2014 and 2017, reaching a minimum of 4.33 billion US dollars by May 2017.
- ROE Drivers and Correlation
- The surge in ROE to a peak of 38.30% in 2017 was driven by the convergence of stable net earnings and a significantly reduced equity base. Conversely, the reduction of ROE to 24.85% in 2019 resulted from a simultaneous decrease in net earnings and a substantial increase in stockholders' equity, which diluted the return relative to the total invested capital.
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Comparison to Competitors
General Mills Inc., ROE, long-term trends, comparison to competitors
| General Mills Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| May 26, 2019 | 24.85% | 46.99% | 14.19% | 49.47% | — |
| May 27, 2018 | 34.70% | 37.89% | 13.19% | 86.20% | — |
| May 28, 2017 | 38.30% | 7.31% | 11.19% | 44.60% | — |
| May 29, 2016 | 34.43% | 28.30% | 6.59% | 57.04% | — |
| May 31, 2015 | 24.44% | 28.77% | 25.94% | 45.73% | — |
| May 25, 2014 | 27.92% | 23.41% | 7.87% | 37.35% | — |
| May 26, 2013 | 27.80% | 25.88% | 12.09% | 27.76% | — |
| May 27, 2012 | 24.41% | 27.51% | 9.40% | 27.71% | — |
| May 29, 2011 | 28.25% | 27.10% | 10.02% | 31.29% | 3,751.53% |
| May 30, 2010 | 28.33% | 38.09% | 11.48% | 29.86% | 207.05% |
| May 31, 2009 | 25.21% | 27.52% | 11.67% | 35.38% | 110.95% |
| May 25, 2008 | 20.83% | 28.37% | 13.07% | 42.47% | 91.87% |
| May 27, 2007 | 21.51% | 27.51% | 9.49% | 32.83% | — |
| May 28, 2006 | 18.88% | 30.02% | 10.72% | 36.71% | — |
| May 29, 2005 | 21.85% | 29.79% | 8.89% | 28.62% | — |
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., ROE, long-term trends, comparison to sector (food, beverage & tobacco)
| General Mills Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| May 26, 2019 | 24.85% | 55.17% |
| May 27, 2018 | 34.70% | 67.69% |
| May 28, 2017 | 38.30% | 35.87% |
| May 29, 2016 | 34.43% | 46.07% |
| May 31, 2015 | 24.44% | 51.57% |
| May 25, 2014 | 27.92% | 37.04% |
| May 26, 2013 | 27.80% | 33.90% |
| May 27, 2012 | 24.41% | 32.24% |
| May 29, 2011 | 28.25% | 30.95% |
| May 30, 2010 | 28.33% | 32.24% |
| May 31, 2009 | 25.21% | 30.24% |
| May 25, 2008 | 20.83% | 33.30% |
| May 27, 2007 | 21.51% | 21.47% |
| May 28, 2006 | 18.88% | 22.65% |
| May 29, 2005 | 21.85% | 19.24% |
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., ROE, long-term trends, comparison to industry (consumer staples)
| General Mills Inc. | Consumer Staples | |
|---|---|---|
| May 26, 2019 | 24.85% | 22.71% |
| May 27, 2018 | 34.70% | 28.05% |
| May 28, 2017 | 38.30% | 25.14% |
| May 29, 2016 | 34.43% | 25.00% |
| May 31, 2015 | 24.44% | 23.15% |
| May 25, 2014 | 27.92% | 23.21% |
| May 26, 2013 | 27.80% | 24.09% |
| May 27, 2012 | 24.41% | 23.55% |
| May 29, 2011 | 28.25% | 23.75% |
| May 30, 2010 | 28.33% | 24.19% |
| May 31, 2009 | 25.21% | 23.20% |
| May 25, 2008 | 20.83% | 22.49% |
| May 27, 2007 | 21.51% | 18.15% |
| May 28, 2006 | 18.88% | 18.58% |
| May 29, 2005 | 21.85% | 22.40% |
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).