Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
General Mills Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | General Mills Inc. gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | General Mills Inc. operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | General Mills Inc. net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | General Mills Inc. ROE deteriorated from 2017 to 2018 and from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | General Mills Inc. ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |
Gross Profit Margin
General Mills Inc., gross profit margin 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) | |||||||
| Gross margin | 5,756,800) | 5,427,500) | 5,563,800) | 5,829,500) | 5,949,200) | 6,369,800) | |
| Net sales | 16,865,200) | 15,740,400) | 15,619,800) | 16,563,100) | 17,630,300) | 17,909,600) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 34.13% | 34.48% | 35.62% | 35.20% | 33.74% | 35.57% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Altria Group Inc. | 50.62% | — | — | — | — | — | |
| Coca-Cola Co. | 60.77% | — | — | — | — | — | |
| PepsiCo Inc. | 55.13% | — | — | — | — | — | |
| Philip Morris International Inc. | 64.73% | — | — | — | — | — | |
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 5,756,800 ÷ 16,865,200 = 34.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | General Mills Inc. gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
General Mills Inc., operating profit margin 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) | |||||||
| Operating profit | 2,515,900) | 2,509,300) | 2,566,400) | 2,707,400) | 2,077,300) | 2,957,400) | |
| Net sales | 16,865,200) | 15,740,400) | 15,619,800) | 16,563,100) | 17,630,300) | 17,909,600) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 14.92% | 15.94% | 16.43% | 16.35% | 11.78% | 16.51% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Altria Group Inc. | 41.12% | — | — | — | — | — | |
| Coca-Cola Co. | 27.06% | — | — | — | — | — | |
| PepsiCo Inc. | 15.32% | — | — | — | — | — | |
| Philip Morris International Inc. | 35.33% | — | — | — | — | — | |
| Operating Profit Margin, Sector | |||||||
| Food, Beverage & Tobacco | 25.88% | — | — | — | — | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | 8.07% | — | — | — | — | — | |
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
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 2,515,900 ÷ 16,865,200 = 14.92%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | General Mills Inc. operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Net Profit Margin
General Mills Inc., net profit margin 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) | |
| Net sales | 16,865,200) | 15,740,400) | 15,619,800) | 16,563,100) | 17,630,300) | 17,909,600) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 10.39% | 13.54% | 10.61% | 10.25% | 6.93% | 10.19% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Altria Group Inc. | -5.15% | — | — | — | — | — | |
| Coca-Cola Co. | 23.94% | — | — | — | — | — | |
| PepsiCo Inc. | 10.89% | — | — | — | — | — | |
| Philip Morris International Inc. | 24.11% | — | — | — | — | — | |
| Net Profit Margin, Sector | |||||||
| Food, Beverage & Tobacco | 13.89% | — | — | — | — | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | 4.14% | — | — | — | — | — | |
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
Net profit margin = 100 × Net earnings attributable to General Mills ÷ Net sales
= 100 × 1,752,700 ÷ 16,865,200 = 10.39%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | General Mills Inc. net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Return on Equity (ROE)
General Mills Inc., ROE 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) | |
| Stockholders’ equity | 7,054,500) | 6,141,100) | 4,327,900) | 4,930,200) | 4,996,700) | 6,534,800) | |
| Profitability Ratio | |||||||
| ROE1 | 24.85% | 34.70% | 38.30% | 34.43% | 24.44% | 27.92% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Altria Group Inc. | -20.78% | — | — | — | — | — | |
| Coca-Cola Co. | 46.99% | — | — | — | — | — | |
| PepsiCo Inc. | 49.47% | — | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | — | |
| ROE, Sector | |||||||
| Food, Beverage & Tobacco | 77.88% | — | — | — | — | — | |
| ROE, Industry | |||||||
| Consumer Staples | 22.58% | — | — | — | — | — | |
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
ROE = 100 × Net earnings attributable to General Mills ÷ Stockholders’ equity
= 100 × 1,752,700 ÷ 7,054,500 = 24.85%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | General Mills Inc. ROE deteriorated from 2017 to 2018 and from 2018 to 2019. |
Return on Assets (ROA)
General Mills Inc., ROA 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) | |
| Total assets | 30,111,200) | 30,624,000) | 21,812,600) | 21,712,300) | 21,964,500) | 23,145,700) | |
| Profitability Ratio | |||||||
| ROA1 | 5.82% | 6.96% | 7.60% | 7.82% | 5.56% | 7.88% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Altria Group Inc. | -2.62% | — | — | — | — | — | |
| Coca-Cola Co. | 10.33% | — | — | — | — | — | |
| PepsiCo Inc. | 9.31% | — | — | — | — | — | |
| Philip Morris International Inc. | 16.76% | — | — | — | — | — | |
| ROA, Sector | |||||||
| Food, Beverage & Tobacco | 8.61% | — | — | — | — | — | |
| ROA, Industry | |||||||
| Consumer Staples | 5.91% | — | — | — | — | — | |
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
ROA = 100 × Net earnings attributable to General Mills ÷ Total assets
= 100 × 1,752,700 ÷ 30,111,200 = 5.82%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | General Mills Inc. ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |