Stock Analysis on Net
Stock Analysis on Net

General Mills Inc. (NYSE:GIS)

This company has been moved to the archive! The financial data has not been updated since December 18, 2019.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

General Mills Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
May 26, 2019 24.85% = 5.82% × 4.27
May 27, 2018 34.70% = 6.96% × 4.99
May 28, 2017 38.30% = 7.60% × 5.04
May 29, 2016 34.43% = 7.82% × 4.40
May 31, 2015 24.44% = 5.56% × 4.40
May 25, 2014 27.92% = 7.88% × 3.54

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2019 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

General Mills Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
May 26, 2019 24.85% = 10.39% × 0.56 × 4.27
May 27, 2018 34.70% = 13.54% × 0.51 × 4.99
May 28, 2017 38.30% = 10.61% × 0.72 × 5.04
May 29, 2016 34.43% = 10.25% × 0.76 × 4.40
May 31, 2015 24.44% = 6.93% × 0.80 × 4.40
May 25, 2014 27.92% = 10.19% × 0.77 × 3.54

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2019 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

General Mills Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
May 26, 2019 24.85% = 0.83 × 0.80 × 15.70% × 0.56 × 4.27
May 27, 2018 34.70% = 0.97 × 0.85 × 16.35% × 0.51 × 4.99
May 28, 2017 38.30% = 0.72 × 0.88 × 16.74% × 0.72 × 5.04
May 29, 2016 34.43% = 0.69 × 0.89 × 16.69% × 0.76 × 4.40
May 31, 2015 24.44% = 0.68 × 0.85 × 12.12% × 0.80 × 4.40
May 25, 2014 27.92% = 0.67 × 0.89 × 16.90% × 0.77 × 3.54

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2019 year is the decrease in effect of taxes measured by tax burden ratio.

Two-Component Disaggregation of ROA

General Mills Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
May 26, 2019 5.82% = 10.39% × 0.56
May 27, 2018 6.96% = 13.54% × 0.51
May 28, 2017 7.60% = 10.61% × 0.72
May 29, 2016 7.82% = 10.25% × 0.76
May 31, 2015 5.56% = 6.93% × 0.80
May 25, 2014 7.88% = 10.19% × 0.77

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2019 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

General Mills Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
May 26, 2019 5.82% = 0.83 × 0.80 × 15.70% × 0.56
May 27, 2018 6.96% = 0.97 × 0.85 × 16.35% × 0.51
May 28, 2017 7.60% = 0.72 × 0.88 × 16.74% × 0.72
May 29, 2016 7.82% = 0.69 × 0.89 × 16.69% × 0.76
May 31, 2015 5.56% = 0.68 × 0.85 × 12.12% × 0.80
May 25, 2014 7.88% = 0.67 × 0.89 × 16.90% × 0.77

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2019 year is the decrease in effect of taxes measured by tax burden ratio.

Disaggregation of Net Profit Margin

General Mills Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
May 26, 2019 10.39% = 0.83 × 0.80 × 15.70%
May 27, 2018 13.54% = 0.97 × 0.85 × 16.35%
May 28, 2017 10.61% = 0.72 × 0.88 × 16.74%
May 29, 2016 10.25% = 0.69 × 0.89 × 16.69%
May 31, 2015 6.93% = 0.68 × 0.85 × 12.12%
May 25, 2014 10.19% = 0.67 × 0.89 × 16.90%

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).

The primary reason for the decrease in net profit margin ratio over 2019 year is the decrease in effect of taxes measured by tax burden ratio.