Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
General Mills Inc., profitability 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), 10-K (reporting date: 2014-05-25), 10-Q (reporting date: 2014-02-23), 10-Q (reporting date: 2013-11-24), 10-Q (reporting date: 2013-08-25).
- Gross Profit Margin
- The gross profit margin demonstrates a relatively stable trend over the reported periods, fluctuating within a narrow range around the mid-30% level. Beginning at approximately 35.57%, it experienced minor decreases and increases but generally remained close to this value, closing near 34.93%. This stability suggests consistent management of production costs relative to sales revenue without significant volatility.
- Operating Profit Margin
- Operating profit margin exhibited more variability compared to the gross margin, initially decreasing from about 16.51% to a low near 11.78%, indicating increasing operating expenses or margin pressure during that timeframe. However, after this trough, the margin showed a recovery trend, rising steadily to reach about 16.93% by the final period. This pattern reflects efforts to improve operational efficiency and control costs influencing operating earnings.
- Net Profit Margin
- The net profit margin generally increased over the periods analyzed, starting near 10.19%, with a noticeable dip to approximately 6.93% in one of the middle quarters, likely reflecting temporary challenges or expenses impacting net income. Subsequently, the margin generally trended upward, peaking near 13.96%, and closing at 12.62%. This improvement suggests enhanced overall profitability after accounting for taxes, interest, and other non-operating items.
- Return on Equity (ROE)
- Return on equity showed significant fluctuations, initially declining from around 27.92% to a lower point near 24.44%. Following this, ROE experienced a robust upward movement, reaching a peak above 44%, indicating a strong capacity to generate shareholder returns. Toward the end, ROE decreased but remained well above the earlier lows, finishing near 27.47%. The volatility in ROE may be influenced by changes in net income, equity base, or both over the intervals.
- Return on Assets (ROA)
- Return on assets fluctuated within a moderate range, dipping from roughly 7.88% to lows near 5.56%, before improving and peaking above 9.8%. After this peak, it declined again, settling near 6.96%. These movements suggest varying efficiency in asset utilization to generate profits, with periods indicating both challenges and improvements in asset management effectiveness.
Return on Sales
Return on Investment
Gross Profit Margin
General Mills Inc., gross profit margin 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 | May 25, 2014 | Feb 23, 2014 | Nov 24, 2013 | Aug 25, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Gross margin | 1,569,100) | 1,389,500) | 1,461,300) | 1,443,000) | 1,509,700) | 1,342,800) | 1,419,100) | 1,255,300) | 1,443,000) | 1,310,100) | 1,319,700) | 1,307,700) | 1,519,500) | 1,416,900) | 1,376,800) | 1,357,500) | 1,540,600) | 1,554,600) | 1,515,500) | 1,375,900) | 1,619,100) | 1,438,700) | 1,482,400) | 1,512,700) | 1,761,700) | 1,613,000) | ||||||||
| 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) | 4,283,800) | 4,377,400) | 4,875,700) | 4,372,700) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Gross profit margin1 | 34.93% | 34.60% | 34.13% | 34.44% | 33.95% | 33.99% | 34.48% | 34.03% | 34.56% | 35.25% | 35.62% | 35.71% | 35.55% | 35.00% | 35.20% | 35.24% | 34.64% | 34.52% | 33.74% | 33.59% | 34.31% | 34.80% | 35.57% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Gross Profit Margin, 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), 10-K (reporting date: 2014-05-25), 10-Q (reporting date: 2014-02-23), 10-Q (reporting date: 2013-11-24), 10-Q (reporting date: 2013-08-25).
1 Q2 2020 Calculation
Gross profit margin = 100
× (Gross marginQ2 2020
+ Gross marginQ1 2020
+ Gross marginQ4 2019
+ Gross marginQ3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × (1,569,100 + 1,389,500 + 1,461,300 + 1,443,000)
÷ (4,420,800 + 4,002,500 + 4,161,700 + 4,198,300)
= 34.93%
2 Click competitor name to see calculations.
The data reveals several notable patterns and trends regarding financial performance over the examined quarters.
- Gross Margin (US$ in thousands)
- The gross margin demonstrates notable fluctuations over the periods. The highest recorded value occurs in November 24, 2013, at 1,761,700 thousand US$, while the lowest is in February 26, 2017, at 1,307,700 thousand US$. After peaking in late 2013, gross margin experiences periodic decreases and recoveries but generally shows a moderate downward trend towards early 2017. Subsequently, there is some stabilization with values exhibiting an oscillating pattern around 1,300,000 to 1,500,000 thousand US$ range until late 2019.
- Net Sales (US$ in thousands)
- Net sales also fluctuate within the period but maintain a relatively high volume overall. Starting at approximately 4,372,700 thousand US$ in August 2013, sales peak at 4,871,700 thousand US$ in November 2013 and again approach this upper range in late 2018 and 2019. Although certain quarters show declines—such as February 2016 and August 2016—the general pattern reflects a degree of volatility without a strong consistent upward or downward direction. Sales mostly oscillate between 3,700,000 and 4,400,000 thousand US$.
- Gross Profit Margin (%)
- The gross profit margin, available from May 2014 onwards, ranges between 33.59% and 35.71%. Initially recorded at 35.57% in May 2014, it sees moderate fluctuations but mostly remains within a tight band between about 33.5% and 35.7%. This suggests that despite variations in gross margin and net sales levels, the relative profitability on sales is relatively stable. There is no extended trend upward or downward; instead, margins change slightly quarter-to-quarter, indicating consistent cost management relative to sales revenue.
Overall, the financial data reflects variability in both sales and gross margin figures, with no clear long-term growth or decline trends. The stability in gross profit margin percentages suggests controlled cost structures relative to revenue despite fluctuating sales volumes. This could point to efficient operational management amidst an uncertain or competitive market environment.
Operating Profit Margin
General Mills Inc., operating profit margin calculation (quarterly data)
| Nov 24, 2019 | Aug 25, 2019 | May 26, 2019 | Feb 24, 2019 | Nov 25, 2018 | Aug 26, 2018 | May 27, 2018 | Feb 25, 2018 | Nov 26, 2017 | Aug 27, 2017 | May 28, 2017 | Feb 26, 2017 | Nov 27, 2016 | Aug 28, 2016 | May 29, 2016 | Feb 28, 2016 | Nov 29, 2015 | Aug 30, 2015 | May 31, 2015 | Feb 22, 2015 | Nov 23, 2014 | Aug 24, 2014 | May 25, 2014 | Feb 23, 2014 | Nov 24, 2013 | Aug 25, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Operating profit | 811,200) | 662,400) | 716,100) | 651,300) | 547,000) | 601,500) | 561,000) | 592,700) | 729,800) | 625,800) | 609,200) | 542,500) | 768,900) | 645,800) | 532,100) | 586,300) | 905,700) | 683,300) | 423,600) | 537,200) | 559,000) | 557,500) | 681,900) | 670,600) | 870,100) | 734,800) | ||||||||
| 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) | 4,283,800) | 4,377,400) | 4,875,700) | 4,372,700) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Operating profit margin1 | 16.93% | 15.36% | 14.92% | 14.23% | 14.14% | 15.47% | 15.94% | 16.33% | 16.11% | 16.45% | 16.43% | 15.81% | 15.88% | 16.42% | 16.35% | 15.35% | 14.75% | 12.54% | 11.78% | 13.26% | 14.00% | 15.61% | 16.51% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Profit Margin, 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), 10-K (reporting date: 2014-05-25), 10-Q (reporting date: 2014-02-23), 10-Q (reporting date: 2013-11-24), 10-Q (reporting date: 2013-08-25).
1 Q2 2020 Calculation
Operating profit margin = 100
× (Operating profitQ2 2020
+ Operating profitQ1 2020
+ Operating profitQ4 2019
+ Operating profitQ3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × (811,200 + 662,400 + 716,100 + 651,300)
÷ (4,420,800 + 4,002,500 + 4,161,700 + 4,198,300)
= 16.93%
2 Click competitor name to see calculations.
The data reveals several key trends in the company's financial performance over the specified periods. Net sales demonstrate notable fluctuations, with values ranging roughly between 3.79 billion and 4.87 billion US dollars. Sales peaked in late 2013 and late 2015 and 2018, with some declines observed particularly in early 2017 and mid-2016, indicating some volatility but an overall steady range within these years.
Operating profit follows a somewhat cyclical pattern, initially high in late 2013 with a peak near 905.7 million US dollars in the fourth quarter of 2015, followed by some dips, notably in mid-2015 and early 2017 periods. Despite these fluctuations, there is a general trend toward recovery in profits after each dip, culminating in a notable increase to over 811 million US dollars by the end of 2019. This suggests periods of effective cost control or improved operational efficiency after downturns.
Operating profit margin data, available from mid-2014 onwards, shows a consistent range fluctuating between approximately 11.8% and 16.9%. The margin appears relatively stable with minor quarterly variations, trending slightly upwards toward the end of the period under review. The highest margin of 16.93% is recorded at the end of 2019, indicating improved profitability relative to sales in that quarter compared to earlier periods. This rising margin trend implies increasing operational efficiency or better pricing strategies.
- Net Sales
- Exhibit periodic variability with some quarters experiencing sales declines, while others show strong sales performance, mostly ranging between 3.79 billion and 4.87 billion dollars.
- Sales peaks occur at irregular intervals, particularly in late 2013, late 2015, and late 2018.
- Operating Profit
- Demonstrates a cyclical pattern with significant peaks and troughs, overall maintaining resilience through the period.
- Highest quarterly profit of approximately 905.7 million dollars occurred in November 2015, with recovery trends observed after mid-cycle lows.
- The upward movement in operating profit toward the end of the period suggests improved operational control or favorable market conditions.
- Operating Profit Margin
- Maintains relative stability, oscillating between approximately 11.8% and 16.9%, reflecting consistent operational efficiency levels.
- A subtle upward trend is observed approaching the end of the data series, reaching the highest margin in the final quarter.
- This improvement signifies enhanced profitability per unit of sale, possibly driven by cost management or pricing adjustments.
Net Profit Margin
General Mills Inc., net profit margin 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 | May 25, 2014 | Feb 23, 2014 | Nov 24, 2013 | Aug 25, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Net earnings attributable to General Mills | 580,800) | 520,600) | 570,200) | 446,800) | 343,400) | 392,300) | 354,400) | 941,400) | 430,500) | 404,700) | 408,900) | 357,800) | 481,800) | 409,000) | 379,600) | 361,700) | 529,500) | 426,600) | 186,800) | 343,200) | 346,100) | 345,200) | 404,600) | 410,600) | 549,900) | 459,300) | ||||||||
| 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) | 4,283,800) | 4,377,400) | 4,875,700) | 4,372,700) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Net profit margin1 | 12.62% | 11.21% | 10.39% | 9.26% | 12.48% | 13.19% | 13.54% | 13.96% | 10.29% | 10.68% | 10.61% | 10.34% | 10.23% | 10.33% | 10.25% | 8.89% | 8.60% | 7.41% | 6.93% | 8.17% | 8.54% | 9.61% | 10.19% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Net Profit Margin, 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), 10-K (reporting date: 2014-05-25), 10-Q (reporting date: 2014-02-23), 10-Q (reporting date: 2013-11-24), 10-Q (reporting date: 2013-08-25).
1 Q2 2020 Calculation
Net profit margin = 100
× (Net earnings attributable to General MillsQ2 2020
+ Net earnings attributable to General MillsQ1 2020
+ Net earnings attributable to General MillsQ4 2019
+ Net earnings attributable to General MillsQ3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × (580,800 + 520,600 + 570,200 + 446,800)
÷ (4,420,800 + 4,002,500 + 4,161,700 + 4,198,300)
= 12.62%
2 Click competitor name to see calculations.
The quarterly financial data reveals several key trends in the company's performance over the analyzed periods. Net earnings attributable to the company exhibit fluctuations across quarters, with some notable peaks and troughs. Initial quarters display moderate net earnings in the range of approximately 345,000 to 549,900 thousand US dollars, with a significant dip around May 2015 reaching 186,800 thousand US dollars. Subsequently, a recovery is observed, with earnings generally increasing over time and peaking around February 2018 at 941,400 thousand US dollars. Following this peak, net earnings show variability but maintain a generally elevated level compared to the earlier periods.
Net sales demonstrate a somewhat cyclical pattern with periodic rises and declines, yet the overall sales figures retain relative stability. Sales fluctuate within a range approximately between 3,790,000 and 4,870,000 thousand US dollars, without a consistent upward or downward trend. The highest sales value occurs in November 2013 at 4,875,700 thousand US dollars. Some quarters experience declines, for example around February 2016 and August 2016, when sales fall below 4,000,000 thousand US dollars. Despite these fluctuations, the sales figures remain robust throughout the periods.
Net profit margin values, available starting from May 2014, show a steady increase over time. Initial margins range near 6.93% to 8.6%, progressing towards margins above 10% in most subsequent quarters. The margin peaks notably at 13.96% in February 2018, corresponding closely with the peak in net earnings observed in the same period. After this peak, the margins decline somewhat but continue to remain above 9%, indicating sustained profitability improvements relative to net sales.
Together, these data points suggest periods of volatility in net earnings and sales, with a notable improvement in profitability reflected in rising net profit margins. The peak in earnings and margins around early 2018 may indicate successful operational efficiencies or favorable market conditions during that time. While sales remain inconsistent, the overall financial performance shows signs of strengthening profitability despite the fluctuations in sales volume.
Return on Equity (ROE)
General Mills Inc., ROE 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 | May 25, 2014 | Feb 23, 2014 | Nov 24, 2013 | Aug 25, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Net earnings attributable to General Mills | 580,800) | 520,600) | 570,200) | 446,800) | 343,400) | 392,300) | 354,400) | 941,400) | 430,500) | 404,700) | 408,900) | 357,800) | 481,800) | 409,000) | 379,600) | 361,700) | 529,500) | 426,600) | 186,800) | 343,200) | 346,100) | 345,200) | 404,600) | 410,600) | 549,900) | 459,300) | ||||||||
| 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) | 6,534,800) | 6,307,700) | 6,633,400) | 6,824,300) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROE1 | 27.47% | 25.48% | 24.85% | 22.18% | 30.54% | 34.03% | 34.70% | 44.01% | 37.86% | 42.35% | 38.30% | 40.07% | 39.04% | 34.22% | 34.43% | 30.78% | 30.98% | 26.32% | 24.44% | 26.45% | 26.56% | 27.58% | 27.92% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROE, 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), 10-K (reporting date: 2014-05-25), 10-Q (reporting date: 2014-02-23), 10-Q (reporting date: 2013-11-24), 10-Q (reporting date: 2013-08-25).
1 Q2 2020 Calculation
ROE = 100
× (Net earnings attributable to General MillsQ2 2020
+ Net earnings attributable to General MillsQ1 2020
+ Net earnings attributable to General MillsQ4 2019
+ Net earnings attributable to General MillsQ3 2019)
÷ Stockholders’ equity
= 100 × (580,800 + 520,600 + 570,200 + 446,800)
÷ 7,712,300 = 27.47%
2 Click competitor name to see calculations.
- Net Earnings Attributable to General Mills
- The net earnings over the observed periods display considerable volatility. Initially, values fluctuated moderately, with a high of 549,900 thousand USD in November 2013, then declining to a low around 186,800 thousand USD in May 2015. From mid-2015 onward, earnings showed periodic increases and decreases, peaking notably at 941,400 thousand USD in February 2018. Following this peak, earnings dropped sharply and then resumed a pattern of fluctuations, ending with a higher value of 580,800 thousand USD in November 2019. Overall, there is no consistent upward or downward trend, but rather cyclical fluctuations with occasional significant peaks and troughs.
- Stockholders’ Equity
- Stockholders' equity demonstrates a generally declining trend from August 2013 through late 2016, falling from 6,824,300 thousand USD to a low point of approximately 4,180,600 thousand USD in November 2016. After this period, equity began to recover steadily, increasing from this low and reaching 7,712,300 thousand USD by November 2019. This suggests a recovery phase following a sustained period of decline, indicating possibly improved capital structure or retained earnings during the later periods.
- Return on Equity (ROE)
- ROE values are not available for the earliest periods but become present from May 2014 onward, showing a high range from approximately 22.18% to 44.01%. The data indicate an overall strong return profile with ROE peaking around 44% in May 2018. However, fluctuations are evident, with periods where ROE declines to the low twenties and then recovers. This pattern aligns with the observed volatility in net earnings, reflecting variability in profitability in relation to equity. The correlation between increasing stockholders' equity from late 2016 onward and generally sustainable ROE levels suggests efficient use of equity capital during the recovery phase.
- Summary
- The financial data reveal significant earnings volatility combined with a dynamic equity position. After a decline in equity through 2016, the company improved its capital base significantly by 2019. The ROE remained at robust levels despite earnings fluctuations, indicating consistent profitability relative to equity over the periods analyzed. The marked peak in net earnings in early 2018 could represent a one-off event or successful operational outcome during that quarter. These patterns point to a resilient financial performance with phases of both contraction and recovery, reflecting responsive management of equity and earnings generation capability.
Return on Assets (ROA)
General Mills Inc., ROA 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 | May 25, 2014 | Feb 23, 2014 | Nov 24, 2013 | Aug 25, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Net earnings attributable to General Mills | 580,800) | 520,600) | 570,200) | 446,800) | 343,400) | 392,300) | 354,400) | 941,400) | 430,500) | 404,700) | 408,900) | 357,800) | 481,800) | 409,000) | 379,600) | 361,700) | 529,500) | 426,600) | 186,800) | 343,200) | 346,100) | 345,200) | 404,600) | 410,600) | 549,900) | 459,300) | ||||||||
| 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) | 23,145,700) | 22,925,000) | 23,152,100) | 22,944,600) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROA1 | 6.96% | 6.21% | 5.82% | 5.07% | 6.69% | 6.93% | 6.96% | 9.83% | 7.22% | 7.44% | 7.60% | 7.51% | 7.56% | 7.67% | 7.82% | 6.96% | 6.88% | 5.84% | 5.56% | 6.15% | 6.22% | 7.32% | 7.88% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROA, 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), 10-K (reporting date: 2014-05-25), 10-Q (reporting date: 2014-02-23), 10-Q (reporting date: 2013-11-24), 10-Q (reporting date: 2013-08-25).
1 Q2 2020 Calculation
ROA = 100
× (Net earnings attributable to General MillsQ2 2020
+ Net earnings attributable to General MillsQ1 2020
+ Net earnings attributable to General MillsQ4 2019
+ Net earnings attributable to General MillsQ3 2019)
÷ Total assets
= 100 × (580,800 + 520,600 + 570,200 + 446,800)
÷ 30,452,400 = 6.96%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company’s performance and asset base over the examined periods.
- Net Earnings Attributable to General Mills (US$ in thousands)
- The net earnings exhibit a pattern of fluctuations across the quarters. Initially, earnings increased from 459,300 in August 2013 to a peak of 549,900 in November 2013, followed by a notable decline in the subsequent quarters down to 186,800 in May 2015. After this dip, there was a recovery trend with values rising to 570,200 by November 2019. However, the data indicates notable volatility, with several periods showing sharp decreases followed by strong rebounds, such as between February 2018 (941,400) and the following quarters where earnings fell to 354,400 by August 2018 before rising again.
- Total Assets (US$ in thousands)
- Total assets remained relatively stable with minor fluctuations over the period from August 2013 to November 2019. Starting around 22.9 billion in 2013, the asset base showed a slight increase reaching approximately 24.2 billion in November 2014 before declining to a low of about 21.5 billion toward late 2015 and early 2016. From 2017 onwards, total assets appear to have stabilized around the 22 billion mark before a significant jump to over 30 billion in 2018, maintaining that level through to November 2019. This suggests potential acquisition activity or capital investments occurring around 2018.
- Return on Assets (ROA, %)
- The ROA data, available for most quarters from May 2014 onward, indicates a generally steady return with values mostly ranging between 5% and 8%. There is a peak at 9.83% in February 2018, corresponding with the very high net earnings reported. After this peak, ROA experiences a decline to around 5% in August 2019, indicating a temporary reduction in profitability relative to assets. Overall, the ROA suggests moderate efficiency in utilizing assets to generate earnings, with variability linked to the fluctuations in net earnings.
In summary, the company experienced variable net earnings with periods of both decline and recovery. The stable asset base until 2018 followed by a substantial increase implies a strategic shift potentially involving asset acquisitions or structural changes. The ROA trend supports the interpretation of operational efficiency that aligns with these earnings and asset changes, highlighting periods of both improved and diminished profitability relative to the asset base.