Common-Size Income Statement
Quarterly Data
General Mills Inc., common-size consolidated income statement (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).
- Cost of Sales
- The cost of sales as a percentage of net sales fluctuated over the periods analyzed, ranging approximately between -63% and -68%. There is no clear linear trend, but several quarters showed an increase in cost ratio, notably reaching peaks near -68%, which negatively impacted gross margin levels. The variability suggests periodic changes in cost structure or input prices.
- Gross Margin
- Gross margin percentages demonstrate variability corresponding inversely to cost of sales movements, fluctuating between roughly 31.6% and 37%. While some quarters reflected improvement up to nearly 37%, other periods showed contractions below 33%, indicating episodic pressure on profitability before operating expenses.
- Selling, General, and Administrative Expenses (SG&A)
- SG&A expenses as a percentage of net sales generally ranged from about -16.9% to -20.3%, exhibiting some reduction in expense ratios in later quarters compared to earlier periods. This movement may indicate enhanced cost control in administrative and selling functions contributing favorably to operating profit margins.
- Divestiture Gain (Loss)
- Divestiture gain/loss figures are sporadic and generally minor in relation to net sales, with isolated positive spikes around 4.5% and small negative ripples. These gains and losses have occasional effects on operating results but do not show a consistent trend.
- Restructuring, Impairment, and Other Exit Costs
- These costs appear inconsistently across periods, with several quarters showing moderate to significant negative impacts up to around -6.2% and occasional slight positives. The irregular pattern suggests impulsive restructuring efforts affecting quarterly results variably.
- Operating Profit
- Operating profit percentage showed fluctuations, generally lying between approximately 9.85% and 20.5%. There is evidence of substantial recovery following some troughs, with a tendency toward higher margins in the most recent periods examined. This variability aligns with the fluctuations in gross margin and SG&A expenses, as well as episodic restructuring costs.
- Benefit Plan Non-Service Income
- This income component emerges only in the final quarters, contributing marginal positive percentages up to 0.75%, indicating a newly accounted source of income boosting non-operating results slightly.
- Interest, Net
- Interest expenses as a percentage of net sales present an increasing negative trend in latter periods, moving from roughly -1.4% to as low as nearly -3.5%. The rising interest cost burden might reflect increased debt levels or higher borrowing costs, which dampens overall profitability.
- Earnings Before Income Taxes and After-Tax Earnings from Joint Ventures
- This metric closely follows operating profit trends but with amplifications from other income and expenses. Values range between about 8% and 18.8%, showing cyclical variations but improvement over some periods with a modest upward trend in later quarters.
- Income Taxes
- Income tax expenses mostly lie between roughly -1.3% and -7%, with an anomalous positive value in one quarter, likely a one-off event. This irregularity causes volatility in net earnings but generally reflects a tax burden consistent with pre-tax profits.
- After-Tax Earnings from Joint Ventures
- These earnings show small but relatively stable contributions between approximately 0.3% and 0.7% of net sales throughout the periods, suggesting a steady income stream from joint ventures without notable volatility.
- Net Earnings Attributable to General Mills
- Net earnings attributable to General Mills illustrate marked variability ranging roughly from 4.35% to over 24% of net sales. The presence of an outlier spike near 24.25% is notable, with other periods showing more moderate net margins generally between 7% and 13%. This high volatility suggests sensitivity to operational fluctuations, cost changes, and occasional exceptional items.
- Overall Summary
- The financial data reveals a company experiencing variable but generally stable profitability margins over time with some quarters affected by higher costs or expenses such as restructuring and interest. Gross margin and operating profit margins exhibit cyclical patterns consistent with cost of sales and SG&A fluctuations. Despite occasional spikes and dips, the company maintains positive operating and net earnings margins, though rising interest expenses in later periods may present a concern. Non-operating incomes like divestiture gains and benefit plan income have modest impacts. The episodic restructuring costs contribute to profitability variability but have not derailed overall positive net earnings performance.