Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
General Mills Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | General Mills Inc. 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. 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. 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. financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | General Mills Inc. 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. 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
| 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) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 2.05 | 2.58 | 2.19 | 1.71 | 1.85 | 1.34 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Altria Group Inc. | 4.51 | — | — | — | — | — | |
| Coca-Cola Co. | 2.25 | — | — | — | — | — | |
| PepsiCo Inc. | 2.17 | — | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | — | |
| Debt to Equity, Sector | |||||||
| Food, Beverage & Tobacco | 4.71 | — | — | — | — | — | |
| Debt to Equity, Industry | |||||||
| Consumer Staples | 1.34 | — | — | — | — | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity
= 14,490,000 ÷ 7,054,500 = 2.05
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | General Mills Inc. 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
| 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) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.67 | 0.72 | 0.69 | 0.63 | 0.65 | 0.57 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Altria Group Inc. | 0.82 | — | — | — | — | — | |
| Coca-Cola Co. | 0.69 | — | — | — | — | — | |
| PepsiCo Inc. | 0.68 | — | — | — | — | — | |
| Philip Morris International Inc. | 1.59 | — | — | — | — | — | |
| Debt to Capital, Sector | |||||||
| Food, Beverage & Tobacco | 0.82 | — | — | — | — | — | |
| Debt to Capital, Industry | |||||||
| Consumer Staples | 0.57 | — | — | — | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 14,490,000 ÷ 21,544,500 = 0.67
2 Click competitor name to see calculations.
| Solvency 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. 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
| 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) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.48 | 0.52 | 0.43 | 0.39 | 0.42 | 0.38 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Altria Group Inc. | 0.57 | — | — | — | — | — | |
| Coca-Cola Co. | 0.50 | — | — | — | — | — | |
| PepsiCo Inc. | 0.41 | — | — | — | — | — | |
| Philip Morris International Inc. | 0.72 | — | — | — | — | — | |
| Debt to Assets, Sector | |||||||
| Food, Beverage & Tobacco | 0.52 | — | — | — | — | — | |
| Debt to Assets, Industry | |||||||
| Consumer Staples | 0.35 | — | — | — | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 14,490,000 ÷ 30,111,200 = 0.48
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | General Mills Inc. 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
| 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) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 4.27 | 4.99 | 5.04 | 4.40 | 4.40 | 3.54 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Altria Group Inc. | 7.92 | — | — | — | — | — | |
| Coca-Cola Co. | 4.55 | — | — | — | — | — | |
| PepsiCo Inc. | 5.31 | — | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | — | |
| Financial Leverage, Sector | |||||||
| Food, Beverage & Tobacco | 9.05 | — | — | — | — | — | |
| Financial Leverage, Industry | |||||||
| Consumer Staples | 3.82 | — | — | — | — | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 30,111,200 ÷ 7,054,500 = 4.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | General Mills Inc. financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Interest Coverage
General Mills Inc., interest coverage calculation, comparison to benchmarks
| 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) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 5.08 | 6.76 | 8.80 | 8.99 | 6.62 | 9.62 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Altria Group Inc. | 1.58 | — | — | — | — | — | |
| Coca-Cola Co. | 12.40 | — | — | — | — | — | |
| PepsiCo Inc. | 9.20 | — | — | — | — | — | |
| Philip Morris International Inc. | 13.59 | — | — | — | — | — | |
| Interest Coverage, Sector | |||||||
| Food, Beverage & Tobacco | 8.36 | — | — | — | — | — | |
| Interest Coverage, Industry | |||||||
| Consumer Staples | 8.58 | — | — | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 2,681,400 ÷ 527,400 = 5.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | General Mills Inc. 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
| 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) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 4.02 | 4.86 | 5.81 | 5.97 | 4.54 | 6.41 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Coca-Cola Co. | 9.47 | — | — | — | — | — | |
| PepsiCo Inc. | 6.79 | — | — | — | — | — | |
| Philip Morris International Inc. | 9.88 | — | — | — | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Food, Beverage & Tobacco | 6.79 | — | — | — | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Staples | 5.11 | — | — | — | — | — | |
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
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.
| Solvency 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. fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |