Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
General Mills Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2019-11-24), 10-Q (reporting date: 2019-08-25), 10-K (reporting date: 2019-05-26), 10-Q (reporting date: 2019-02-24), 10-Q (reporting date: 2018-11-25), 10-Q (reporting date: 2018-08-26), 10-K (reporting date: 2018-05-27), 10-Q (reporting date: 2018-02-25), 10-Q (reporting date: 2017-11-26), 10-Q (reporting date: 2017-08-27), 10-K (reporting date: 2017-05-28), 10-Q (reporting date: 2017-02-26), 10-Q (reporting date: 2016-11-27), 10-Q (reporting date: 2016-08-28), 10-K (reporting date: 2016-05-29), 10-Q (reporting date: 2016-02-28), 10-Q (reporting date: 2015-11-29), 10-Q (reporting date: 2015-08-30), 10-K (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-22), 10-Q (reporting date: 2014-11-23), 10-Q (reporting date: 2014-08-24).
The analysis of the quarterly financial ratios over the observed periods reveals distinct trends across net fixed asset turnover, total asset turnover, and equity turnover.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a generally stable yet slightly fluctuating trend. Initially, it rose modestly from 4.56 to a peak of approximately 4.82 between mid-2014 and late 2015. Subsequently, there was a gradual decline observed through mid-2018, reaching a low near 3.89. After this trough, the ratio gradually increased again, reaching up to 4.68 by the end of 2019. This pattern indicates a cycle of efficiency in utilizing fixed assets to generate sales, with a temporary dip before partial recovery.
- Total Asset Turnover
- The total asset turnover ratio reveals a declining pattern overall. Starting at 0.76 in the middle of 2014, the ratio experienced minor fluctuations but moved mainly downward, reaching a significant low around 0.51 by mid-2018. Although there was a slight rebound to about 0.56 by late 2019, the ratio did not recover to earlier levels. This decline suggests a reduction in the efficiency with which the company uses all of its assets to generate revenue over the period, with a marked drop during 2018.
- Equity Turnover
- Equity turnover exhibited growth at the beginning of the timeframe, rising from 2.87 to a peak of approximately 3.97 in late 2017. This increase indicates a period in which the company efficiently utilized shareholder equity to drive sales. However, after this peak, a consistent decrease is seen, falling to about 2.18 by the end of 2019. This decline points to a reduced efficiency in generating sales from equity in the more recent quarters of the observed periods.
Overall, the company experienced varying efficiency levels in asset utilization over the examined quarters. The net fixed asset turnover showed resilience with a recovery after a dip, while total asset turnover reflected a notable decline in asset efficiency, particularly through 2018. Equity turnover initially improved but faced a consistent downward trend post-2017, signaling less effective use of equity to produce sales revenues in later periods.
Net Fixed Asset Turnover
General Mills Inc., net fixed asset turnover calculation (quarterly data)
| Nov 24, 2019 | Aug 25, 2019 | May 26, 2019 | Feb 24, 2019 | Nov 25, 2018 | Aug 26, 2018 | May 27, 2018 | Feb 25, 2018 | Nov 26, 2017 | Aug 27, 2017 | May 28, 2017 | Feb 26, 2017 | Nov 27, 2016 | Aug 28, 2016 | May 29, 2016 | Feb 28, 2016 | Nov 29, 2015 | Aug 30, 2015 | May 31, 2015 | Feb 22, 2015 | Nov 23, 2014 | Aug 24, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net sales | 4,420,800) | 4,002,500) | 4,161,700) | 4,198,300) | 4,411,200) | 4,094,000) | 3,890,200) | 3,882,300) | 4,198,700) | 3,769,200) | 3,806,600) | 3,793,200) | 4,112,100) | 3,907,900) | 3,927,900) | 4,002,400) | 4,424,900) | 4,207,900) | 4,298,800) | 4,350,900) | 4,712,200) | 4,268,400) | |||||||
| Land, buildings, and equipment | 3,588,500) | 3,668,300) | 3,787,200) | 3,822,900) | 3,897,400) | 3,955,100) | 4,047,200) | 3,626,200) | 3,631,400) | 3,648,100) | 3,687,700) | 3,575,200) | 3,571,300) | 3,655,300) | 3,743,600) | 3,604,500) | 3,588,400) | 3,679,200) | 3,783,300) | 3,725,400) | 3,824,200) | 3,907,000) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 4.68 | 4.57 | 4.45 | 4.34 | 4.18 | 4.06 | 3.89 | 4.32 | 4.29 | 4.24 | 4.24 | 4.40 | 4.47 | 4.45 | 4.42 | 4.70 | 4.82 | 4.78 | 4.66 | 4.73 | 4.61 | 4.56 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Coca-Cola Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2019-11-24), 10-Q (reporting date: 2019-08-25), 10-K (reporting date: 2019-05-26), 10-Q (reporting date: 2019-02-24), 10-Q (reporting date: 2018-11-25), 10-Q (reporting date: 2018-08-26), 10-K (reporting date: 2018-05-27), 10-Q (reporting date: 2018-02-25), 10-Q (reporting date: 2017-11-26), 10-Q (reporting date: 2017-08-27), 10-K (reporting date: 2017-05-28), 10-Q (reporting date: 2017-02-26), 10-Q (reporting date: 2016-11-27), 10-Q (reporting date: 2016-08-28), 10-K (reporting date: 2016-05-29), 10-Q (reporting date: 2016-02-28), 10-Q (reporting date: 2015-11-29), 10-Q (reporting date: 2015-08-30), 10-K (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-22), 10-Q (reporting date: 2014-11-23), 10-Q (reporting date: 2014-08-24).
1 Q2 2020 Calculation
Net fixed asset turnover
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ Land, buildings, and equipment
= (4,420,800 + 4,002,500 + 4,161,700 + 4,198,300)
÷ 3,588,500 = 4.68
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable patterns in sales performance, asset base, and operational efficiency over the observed periods.
- Net Sales
- Net sales exhibit fluctuations across the quarters without a consistent upward or downward trajectory. Initial sales figures start around 4.27 billion USD, reaching peaks near 4.71 billion USD and dipping to lows around 3.79 billion USD in some quarters. The data suggests a cyclical pattern, with several periods showing recovery following declines. Toward the later periods, net sales stabilize around the 4.0 to 4.4 billion USD range, indicating moderate resilience in revenue generation despite variability.
- Land, Buildings, and Equipment
- The value of land, buildings, and equipment demonstrates a gradual decline over the time frame, descending from approximately 3.91 billion USD to roughly 3.59 billion USD. Notable is a period of relative stabilization and minor increase during the mid to later quarters, particularly around May 2018, where the figure peaks above 4.04 billion USD before resuming its downward trend. This pattern may imply cycles of asset disposals, depreciation, or limited reinvestment in fixed assets.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, a measure of how efficiently the company generates sales from its fixed assets, reveals a variable trend. The ratio ranges from a low of approximately 3.89 to a high near 4.82. Initially, the ratio remains relatively high and stable, indicating effective utilization of fixed assets. A dip occurs around the middle period, dropping below 4.0, which corresponds temporally with the increase in asset values and possible inefficiencies. Toward the concluding periods, a recovery in this ratio is evident, suggesting improved efficiency and asset utilization aligned with steadier sales performance.
- Insights and Implications
- The interplay between declining fixed asset values and fluctuating net sales impacts operational efficiency as evidenced by the changing net fixed asset turnover ratio. Periods of declining sales and increasing fixed assets correlate with reduced asset turnover, potentially signaling underutilized capacity or delayed asset write-downs. Conversely, when asset values decline or stabilize with sustained sales, the turnover ratio improves, indicating better asset employment in revenue generation. These patterns highlight the importance of aligning capital investment with sales trends to optimize asset utilization and financial performance.
Total Asset Turnover
General Mills Inc., total asset turnover calculation (quarterly data)
| Nov 24, 2019 | Aug 25, 2019 | May 26, 2019 | Feb 24, 2019 | Nov 25, 2018 | Aug 26, 2018 | May 27, 2018 | Feb 25, 2018 | Nov 26, 2017 | Aug 27, 2017 | May 28, 2017 | Feb 26, 2017 | Nov 27, 2016 | Aug 28, 2016 | May 29, 2016 | Feb 28, 2016 | Nov 29, 2015 | Aug 30, 2015 | May 31, 2015 | Feb 22, 2015 | Nov 23, 2014 | Aug 24, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net sales | 4,420,800) | 4,002,500) | 4,161,700) | 4,198,300) | 4,411,200) | 4,094,000) | 3,890,200) | 3,882,300) | 4,198,700) | 3,769,200) | 3,806,600) | 3,793,200) | 4,112,100) | 3,907,900) | 3,927,900) | 4,002,400) | 4,424,900) | 4,207,900) | 4,298,800) | 4,350,900) | 4,712,200) | 4,268,400) | |||||||
| Total assets | 30,452,400) | 30,313,200) | 30,111,200) | 30,285,800) | 30,384,000) | 30,554,800) | 30,624,000) | 22,240,600) | 22,191,500) | 22,209,600) | 21,812,600) | 21,670,300) | 21,602,100) | 21,913,100) | 21,712,300) | 21,631,600) | 21,588,700) | 22,322,900) | 21,964,500) | 23,383,100) | 24,203,700) | 23,372,800) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | 0.55 | 0.55 | 0.56 | 0.55 | 0.54 | 0.53 | 0.51 | 0.70 | 0.70 | 0.70 | 0.72 | 0.73 | 0.74 | 0.74 | 0.76 | 0.78 | 0.80 | 0.79 | 0.80 | 0.75 | 0.73 | 0.76 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Coca-Cola Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2019-11-24), 10-Q (reporting date: 2019-08-25), 10-K (reporting date: 2019-05-26), 10-Q (reporting date: 2019-02-24), 10-Q (reporting date: 2018-11-25), 10-Q (reporting date: 2018-08-26), 10-K (reporting date: 2018-05-27), 10-Q (reporting date: 2018-02-25), 10-Q (reporting date: 2017-11-26), 10-Q (reporting date: 2017-08-27), 10-K (reporting date: 2017-05-28), 10-Q (reporting date: 2017-02-26), 10-Q (reporting date: 2016-11-27), 10-Q (reporting date: 2016-08-28), 10-K (reporting date: 2016-05-29), 10-Q (reporting date: 2016-02-28), 10-Q (reporting date: 2015-11-29), 10-Q (reporting date: 2015-08-30), 10-K (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-22), 10-Q (reporting date: 2014-11-23), 10-Q (reporting date: 2014-08-24).
1 Q2 2020 Calculation
Total asset turnover
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ Total assets
= (4,420,800 + 4,002,500 + 4,161,700 + 4,198,300)
÷ 30,452,400 = 0.55
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibit a fluctuating trend over the observed periods. Initially, there is an increase from approximately 4,268,400 thousand USD to a peak near 4,712,200 thousand USD by November 2014. Following this peak, sales generally decline with some variability, reaching lower points around early 2017. Subsequently, net sales show intermittent recoveries and declines without establishing a clear upward or downward long-term trend. For instance, sales in November 2019 rebound to approximately 4,420,800 thousand USD, closing near earlier high levels, but the data reflects continued volatility throughout the periods.
- Total Assets
- Total assets remain relatively stable from 2014 through mid-2018, fluctuating slightly around 21,900,000 to 24,200,000 thousand USD. Starting in mid-2018, a notable increase occurs, with total assets rising substantially to approximately 30,624,000 thousand USD and maintaining values above 30,000,000 thousand USD through late 2019. This signal suggests an expansion or acquisition phase during the latter periods, significantly increasing the asset base.
- Total Asset Turnover
- The total asset turnover ratio declines gradually over the timeframe. In the earlier periods up to mid-2017, the ratio stays close to a range of 0.70 to 0.80. However, from mid-2018 onward, there is a marked drop to values around 0.50 to 0.56. This decrease, coinciding with the sharp asset growth, indicates a reduced efficiency in the use of assets to generate sales. Lower turnover suggests that the increased asset base has not yet translated into proportional increases in revenue, pointing to potential integration or utilization challenges.
Equity Turnover
General Mills Inc., equity turnover calculation (quarterly data)
| Nov 24, 2019 | Aug 25, 2019 | May 26, 2019 | Feb 24, 2019 | Nov 25, 2018 | Aug 26, 2018 | May 27, 2018 | Feb 25, 2018 | Nov 26, 2017 | Aug 27, 2017 | May 28, 2017 | Feb 26, 2017 | Nov 27, 2016 | Aug 28, 2016 | May 29, 2016 | Feb 28, 2016 | Nov 29, 2015 | Aug 30, 2015 | May 31, 2015 | Feb 22, 2015 | Nov 23, 2014 | Aug 24, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net sales | 4,420,800) | 4,002,500) | 4,161,700) | 4,198,300) | 4,411,200) | 4,094,000) | 3,890,200) | 3,882,300) | 4,198,700) | 3,769,200) | 3,806,600) | 3,793,200) | 4,112,100) | 3,907,900) | 3,927,900) | 4,002,400) | 4,424,900) | 4,207,900) | 4,298,800) | 4,350,900) | 4,712,200) | 4,268,400) | |||||||
| Stockholders’ equity | 7,712,300) | 7,382,800) | 7,054,500) | 6,930,400) | 6,651,800) | 6,225,100) | 6,141,100) | 4,965,600) | 4,230,700) | 3,903,800) | 4,327,900) | 4,063,400) | 4,180,600) | 4,908,300) | 4,930,200) | 4,888,800) | 4,797,000) | 4,949,100) | 4,996,700) | 5,441,200) | 5,672,300) | 6,202,300) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | 2.18 | 2.27 | 2.39 | 2.39 | 2.45 | 2.58 | 2.56 | 3.15 | 3.68 | 3.97 | 3.61 | 3.87 | 3.82 | 3.31 | 3.36 | 3.46 | 3.60 | 3.55 | 3.53 | 3.24 | 3.11 | 2.87 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Coca-Cola Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2019-11-24), 10-Q (reporting date: 2019-08-25), 10-K (reporting date: 2019-05-26), 10-Q (reporting date: 2019-02-24), 10-Q (reporting date: 2018-11-25), 10-Q (reporting date: 2018-08-26), 10-K (reporting date: 2018-05-27), 10-Q (reporting date: 2018-02-25), 10-Q (reporting date: 2017-11-26), 10-Q (reporting date: 2017-08-27), 10-K (reporting date: 2017-05-28), 10-Q (reporting date: 2017-02-26), 10-Q (reporting date: 2016-11-27), 10-Q (reporting date: 2016-08-28), 10-K (reporting date: 2016-05-29), 10-Q (reporting date: 2016-02-28), 10-Q (reporting date: 2015-11-29), 10-Q (reporting date: 2015-08-30), 10-K (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-22), 10-Q (reporting date: 2014-11-23), 10-Q (reporting date: 2014-08-24).
1 Q2 2020 Calculation
Equity turnover
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ Stockholders’ equity
= (4,420,800 + 4,002,500 + 4,161,700 + 4,198,300)
÷ 7,712,300 = 2.18
2 Click competitor name to see calculations.
The financial data over the reviewed periods reveals distinct trends in net sales, stockholders’ equity, and equity turnover ratio. These items reflect operational performance, capital structure dynamics, and efficiency in equity use, respectively.
- Net Sales
- Net sales exhibited fluctuations throughout the periods without a clear linear trajectory. Initially, there was a general increase from approximately 4.27 billion US dollars in August 2014 to a peak above 4.71 billion US dollars in November 2014. Subsequently, net sales showed a downward trend with intermittent recoveries, falling below 4.0 billion US dollars in early 2016 and mid-2017. The latter periods showed some recovery, reaching over 4.4 billion US dollars by November 2019. Overall, net sales appear cyclical with phases of growth followed by declines, suggesting possible seasonal or market-driven volatility.
- Stockholders’ Equity
- Stockholders’ equity generally trended downward from August 2014 through late 2016, decreasing from just over 6.2 billion US dollars to around 4.06 billion US dollars by February 2017. This decline indicates potential capital reductions, losses, or dividends exceeding earnings during this timeframe. However, from mid-2017 onward, equity reversed this trend with steady increases, surpassing 7.7 billion US dollars by November 2019, which could signal reinvestment of earnings, capital injections, or retained profit accumulation contributing to enhanced equity base.
- Equity Turnover Ratio
- This ratio, representing sales generated per unit of equity, rose from 2.87 in August 2014 to peaks near 3.9 by late 2016 and early 2017, indicating efficient utilization of equity in generating sales during these periods. From 2017 forward, the ratio showed a consistent decline, reaching approximately 2.18 by November 2019. This decrease is likely related to the substantial growth in stockholders’ equity outpacing net sales growth, reflecting a relative reduction in sales efficiency with respect to equity employed.
In summary, net sales present a variable pattern with no sustained growth trend, stockholders’ equity exhibited an initial contraction followed by robust recovery and growth, and equity turnover ratio initially improved but diminished in the latter periods due to equity growth outstripping sales increases. These dynamics collectively suggest shifts in capital structure and operational effectiveness that may warrant further analysis of profitability, leverage, and capital management strategies.