Analysis of Geographic Areas
General Mills Inc. operates in 2 regions: United States and Non-United States.
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Analysis of Revenues
- Analysis of Debt
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Area Asset Turnover
General Mills Inc., asset turnover by geographic area
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Non-United States |
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).
- United States Asset Turnover Ratio Trends
- The asset turnover ratio for the United States region shows a fluctuating pattern over the observed period. Starting at 4.54 in 2014, it experienced a slight increase to 4.58 in 2015, followed by a consistent decline through 2018, reaching a low of 3.67. However, in 2019, the ratio rebounded to 4.34. This decline over the middle years suggests a reduction in efficiency in generating sales from assets within the U.S. during that timeframe, with a notable recovery in the final year under review.
- Non-United States Asset Turnover Ratio Trends
- The Non-United States asset turnover ratio exhibits generally higher values and a more stable upward trend compared to the U.S. region. Beginning at 4.54 in 2014, the ratio increased to 4.86 in 2015, showed a minor decline thereafter but remained above 4.5 in most years, and ended at 4.81 in 2019. This indicates relatively consistent efficiency in asset utilization outside the U.S., with slight improvements observable toward the end of the period.
- Comparative Insights Between Regions
- Comparing both geographic segments, the Non-United States region consistently outperformed the United States in asset turnover ratios from 2015 onwards. While the U.S. experienced a decline and later partial recovery, the Non-U.S. segment maintained higher turnover values, indicating better asset utilization efficiency internationally. This divergence suggests regional differences in operational effectiveness or market dynamics impacting asset productivity.
Area Asset Turnover: United States
General Mills Inc.; United States; area asset turnover calculation
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Land, buildings, and equipment | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2019 Calculation
Area asset turnover = Net sales ÷ Land, buildings, and equipment
= ÷ =
The data exhibits several notable trends over the examined six-year period regarding the geographic area labeled as “United States.”
- Net Sales
- Net sales demonstrate a fluctuating pattern, initially showing a stable trend from 2014 to 2015 with figures close to 12.5 billion US dollars. Following this, there is a consistent decline over the next three years, bottoming out around 11.1 billion US dollars in 2017 and 2018. However, in 2019, net sales experienced a significant rebound, rising sharply back to approximately 12.5 billion US dollars, nearly returning to the initial levels observed in 2014.
- Land, Buildings, and Equipment
- Investment in land, buildings, and equipment reveals moderate variability. After a slight decrease from 2.76 billion US dollars in 2014 to roughly 2.73 billion in 2015, the asset base remains fairly steady through 2017, with slight fluctuations. A marked increase occurs in 2018, reaching over 3 billion US dollars, followed by a decrease again in 2019 to approximately 2.87 billion US dollars. This pattern suggests varying capital expenditure or asset revaluation activity during the period.
- Area Asset Turnover
- The area asset turnover ratio, representing efficiency in generating sales from assets, declines from 4.54 in 2014 to a low of 3.67 in 2018, indicating decreasing operational efficiency in terms of asset utilization over these years. However, a partial recovery is observed in 2019 with the ratio increasing to 4.34, which corresponds with the rebound in net sales and the temporary reduction in the asset base noted.
Overall, the data reflects a cycle of declining sales and efficiency from 2014 through 2018, followed by a recovery phase in 2019. Capital investment shows some volatility but appears to peak in 2018 before contracting slightly, potentially indicating adjustments in asset management or strategic focus. The improved area asset turnover in 2019, alongside rising net sales and reduced assets, suggests better asset utilization and operational performance entering the final year recorded.
Area Asset Turnover: Non-United States
General Mills Inc.; Non-United States; area asset turnover calculation
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Land, buildings, and equipment | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2019 Calculation
Area asset turnover = Net sales ÷ Land, buildings, and equipment
= ÷ =
- Net Sales
- Net sales in the Non-United States geographic area demonstrate a declining trend over the analyzed periods. Starting at $5,386,600 thousand in May 2014, sales decreased consistently to $4,402,400 thousand by May 2019. The most significant drops occurred between May 2014 and May 2017, with a slight recovery in May 2018, followed again by a decline in the last reported period.
- Land, Buildings, and Equipment
- The value of land, buildings, and equipment in this geographic area also declined over the years, decreasing from $1,185,300 thousand in May 2014 to $914,400 thousand in May 2019. The reductions between consecutive years suggest a gradual divestment or depreciation of fixed assets, with a minor increase in May 2018 before continuing the downward trend.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency of asset use to generate sales, fluctuated within a narrow range during the analyzed period. Starting at 4.54 in May 2014, the ratio peaked at 4.86 in May 2015, declined to its lowest at 4.53 in May 2017, and recovered to 4.81 by May 2019. Despite the decreasing asset base and net sales, the turnover ratio remained relatively stable, indicating maintained operational efficiency in utilizing assets in this region.
Net sales
General Mills Inc., net sales by geographic area
US$ in thousands
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Non-United States | ||||||
| Total |
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 analysis of annual net sales data by geographic area reveals several key trends over the six-year period.
- United States Segment
- Sales in the United States experienced a general decline from 12,523,000 thousand US dollars in 2014 to a low of 11,115,600 thousand US dollars in 2018. However, this trend reversed in 2019, with sales increasing significantly to 12,462,800 thousand US dollars, nearly recovering to the initial levels observed in 2014. The mid-period decline may indicate challenges in the domestic market or shifts in strategic focus, while the recovery suggests renewed growth or effective responses to earlier declines.
- Non-United States Segment
- Non-United States sales showed a more consistent downward trend throughout the period, decreasing from 5,386,600 thousand US dollars in 2014 to 4,402,400 thousand US dollars in 2019. Despite a slight uptick in 2018, the overall pattern indicates a persistent decline in international sales. This may reflect increased competition, market exit, currency fluctuations, or other external factors impacting international operations.
- Total Net Sales
- Total net sales mirrored the combined performance of the two segments. The aggregate sales declined steadily from 17,909,600 thousand US dollars in 2014 to 15,619,800 thousand US dollars in 2017. A modest increase occurred in 2018, followed by a more pronounced rise in 2019 to 16,865,200 thousand US dollars. This improvement in the final year is largely driven by the rebound in U.S. sales, partially offsetting the continuing decline in international revenue.
Overall, the data indicates that domestic sales are the primary driver of revenue changes. The rebound in U.S. sales in 2019 is a positive development that partially mitigates the sustained decline in non-U.S. markets. The company may benefit from focusing on strategies that address international market challenges while consolidating its strengthening position in the domestic market.
Land, buildings, and equipment
General Mills Inc., land, buildings, and equipment by geographic area
US$ in thousands
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| Non-United States | ||||||
| Total |
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).
- United States
-
The value of land, buildings, and equipment in the United States shows modest fluctuations over the six-year period. Starting at approximately 2.76 billion US dollars in 2014, there is a slight decline in the subsequent years, dipping to around 2.70 billion by 2017. In 2018, a notable increase occurs, reaching about 3.03 billion, before decreasing again to roughly 2.87 billion in 2019. Despite these variations, the overall trend does not show significant growth, but rather a pattern of moderate variability.
- Non-United States
-
The data for areas outside the United States exhibits a clearer downward trend over the period. Beginning at approximately 1.19 billion in 2014, the value steadily declines almost every year, reaching the lowest point of about 914 million in 2019. Minor fluctuations appear, such as a slight increase from 983.7 million in 2017 to 1.02 billion in 2018, but the general movement is downward, suggesting either divestitures, decreased investment, or revaluation of assets internationally.
- Total
-
The total land, buildings, and equipment values, combining both United States and non-United States figures, mirror the trends seen in the individual geographic segments. Starting at roughly 3.94 billion in 2014, there is a gradual decline to about 3.69 billion by 2017. A marked increase occurs in 2018 to nearly 4.05 billion, driven primarily by the rise in U.S. holdings. However, the total decreases again to approximately 3.79 billion in 2019. The values suggest a cyclical pattern with a peak in 2018, followed by a retraction in 2019.