Microsoft Excel LibreOffice Calc

General Mills Inc. (GIS)


Long-term Debt and Solvency Analysis

Difficulty: Beginner


Ratios (Summary)

General Mills Inc., debt and solvency ratios

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Debt Ratios
Debt to equity 2.05 2.58 2.19 1.71 1.85 1.34
Debt to capital 0.67 0.72 0.69 0.63 0.65 0.57
Debt to assets 0.48 0.52 0.43 0.39 0.42 0.38
Financial leverage 4.27 4.99 5.04 4.40 4.40 3.54
Coverage Ratios
Interest coverage 5.08 6.76 8.80 8.99 6.62 9.62
Fixed charge coverage 4.02 4.86 5.81 5.97 4.54 6.41

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

Ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. General Mills Inc.’s debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. General Mills Inc.’s debt to capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. General Mills Inc.’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. General Mills Inc.’s financial leverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. General Mills Inc.’s interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. General Mills Inc.’s fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

General Mills Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,396,500  1,600,100  604,700  1,103,400  1,000,400  1,250,600 
Notes payable 1,468,700  1,549,800  1,234,100  269,800  615,800  1,111,700 
Long-term debt, excluding current portion 11,624,800  12,668,700  7,642,900  7,057,700  7,607,700  6,423,500 
Total debt 14,490,000  15,818,600  9,481,700  8,430,900  9,223,900  8,785,800 
 
Stockholders’ equity 7,054,500  6,141,100  4,327,900  4,930,200  4,996,700  6,534,800 
Ratio
Debt to equity1 2.05 2.58 2.19 1.71 1.85 1.34
Benchmarks
Debt to Equity, Competitors2
Kraft Heinz Co. 0.60 0.48 0.56 0.44
Mondelēz International Inc. 0.72 0.68 0.68 0.55 0.60
Debt to Equity, Sector
Food Producers 0.78 0.61 0.66 0.55 0.74
Debt to Equity, Industry
Consumer Goods 1.97 1.83 1.72 1.56 1.64

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 14,490,000 ÷ 7,054,500 = 2.05

2 Click competitor name to see calculations.

Ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. General Mills Inc.’s debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Debt to Capital

General Mills Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,396,500  1,600,100  604,700  1,103,400  1,000,400  1,250,600 
Notes payable 1,468,700  1,549,800  1,234,100  269,800  615,800  1,111,700 
Long-term debt, excluding current portion 11,624,800  12,668,700  7,642,900  7,057,700  7,607,700  6,423,500 
Total debt 14,490,000  15,818,600  9,481,700  8,430,900  9,223,900  8,785,800 
Stockholders’ equity 7,054,500  6,141,100  4,327,900  4,930,200  4,996,700  6,534,800 
Total capital 21,544,500  21,959,700  13,809,600  13,361,100  14,220,600  15,320,600 
Ratio
Debt to capital1 0.67 0.72 0.69 0.63 0.65 0.57
Benchmarks
Debt to Capital, Competitors2
Kraft Heinz Co. 0.38 0.32 0.36 0.30
Mondelēz International Inc. 0.42 0.40 0.41 0.35 0.38
Debt to Capital, Sector
Food Producers 0.44 0.38 0.40 0.35 0.43
Debt to Capital, Industry
Consumer Goods 0.66 0.65 0.63 0.61 0.62

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,490,000 ÷ 21,544,500 = 0.67

2 Click competitor name to see calculations.

Ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. General Mills Inc.’s debt to capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Debt to Assets

General Mills Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,396,500  1,600,100  604,700  1,103,400  1,000,400  1,250,600 
Notes payable 1,468,700  1,549,800  1,234,100  269,800  615,800  1,111,700 
Long-term debt, excluding current portion 11,624,800  12,668,700  7,642,900  7,057,700  7,607,700  6,423,500 
Total debt 14,490,000  15,818,600  9,481,700  8,430,900  9,223,900  8,785,800 
 
Total assets 30,111,200  30,624,000  21,812,600  21,712,300  21,964,500  23,145,700 
Ratio
Debt to assets1 0.48 0.52 0.43 0.39 0.42 0.38
Benchmarks
Debt to Assets, Competitors2
Kraft Heinz Co. 0.30 0.26 0.27 0.21
Mondelēz International Inc. 0.29 0.28 0.28 0.25 0.25
Debt to Assets, Sector
Food Producers 0.33 0.29 0.28 0.24 0.28
Debt to Assets, Industry
Consumer Goods 0.46 0.45 0.42 0.40 0.39

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,490,000 ÷ 30,111,200 = 0.48

2 Click competitor name to see calculations.

Ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. General Mills Inc.’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Financial Leverage

General Mills Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Selected Financial Data (US$ in thousands)
Total assets 30,111,200  30,624,000  21,812,600  21,712,300  21,964,500  23,145,700 
Stockholders’ equity 7,054,500  6,141,100  4,327,900  4,930,200  4,996,700  6,534,800 
Ratio
Financial leverage1 4.27 4.99 5.04 4.40 4.40 3.54
Benchmarks
Financial Leverage, Competitors2
Kraft Heinz Co. 2.00 1.82 2.10 2.13
Mondelēz International Inc. 2.45 2.42 2.45 2.24 2.41
Financial Leverage, Sector
Food Producers 2.36 2.13 2.33 2.29 2.62
Financial Leverage, Industry
Consumer Goods 4.32 4.12 4.08 3.93 4.16

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 30,111,200 ÷ 7,054,500 = 4.27

2 Click competitor name to see calculations.

Ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. General Mills Inc.’s financial leverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

General Mills Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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 earnings attributable to General Mills 1,752,700  2,131,000  1,657,500  1,697,400  1,221,300  1,824,400 
Add: Net income attributable to noncontrolling interest 33,500  32,000  43,600  39,400  38,100  36,900 
Add: Income tax expense 367,800  57,300  655,200  755,200  586,800  883,300 
Add: Interest expense, net of capitalized interest 527,400  385,400  302,100  311,900  328,600  318,500 
Earnings before interest and tax (EBIT) 2,681,400  2,605,700  2,658,400  2,803,900  2,174,800  3,063,100 
Ratio
Interest coverage1 5.08 6.76 8.80 8.99 6.62 9.62
Benchmarks
Interest Coverage, Competitors2
Kraft Heinz Co. -7.82 5.48 5.43 1.77
Mondelēz International Inc. 10.02 10.15 4.49 13.95 4.28
Interest Coverage, Sector
Food Producers -1.31 6.96 5.75 5.76 5.83
Interest Coverage, Industry
Consumer Goods 8.65 12.04 13.13 11.18 12.05

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,681,400 ÷ 527,400 = 5.08

2 Click competitor name to see calculations.

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. General Mills Inc.’s interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

General Mills Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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 earnings attributable to General Mills 1,752,700  2,131,000  1,657,500  1,697,400  1,221,300  1,824,400 
Add: Net income attributable to noncontrolling interest 33,500  32,000  43,600  39,400  38,100  36,900 
Add: Income tax expense 367,800  57,300  655,200  755,200  586,800  883,300 
Add: Interest expense, net of capitalized interest 527,400  385,400  302,100  311,900  328,600  318,500 
Earnings before interest and tax (EBIT) 2,681,400  2,605,700  2,658,400  2,803,900  2,174,800  3,063,100 
Add: Rent expense under all operating leases from continuing operations 184,900  189,400  188,100  189,100  193,500  189,000 
Earnings before fixed charges and tax 2,866,300  2,795,100  2,846,500  2,993,000  2,368,300  3,252,100 
 
Interest expense, net of capitalized interest 527,400  385,400  302,100  311,900  328,600  318,500 
Rent expense under all operating leases from continuing operations 184,900  189,400  188,100  189,100  193,500  189,000 
Fixed charges 712,300  574,800  490,200  501,000  522,100  507,500 
Ratio
Fixed charge coverage1 4.02 4.86 5.81 5.97 4.54 6.41
Benchmarks
Fixed Charge Coverage, Competitors2
Kraft Heinz Co. -6.63 4.90 4.04 0.87
Mondelēz International Inc. 6.77 6.33 3.16 9.39 3.17
Fixed Charge Coverage, Sector
Food Producers -0.77 5.45 4.19 3.35 4.15
Fixed Charge Coverage, Industry
Consumer Goods 5.97 8.17 8.81 7.05 6.85

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,866,300 ÷ 712,300 = 4.02

2 Click competitor name to see calculations.

Ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. General Mills Inc.’s fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.