General Mills Inc (GIS)
Profitability ratios
Return on sales
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.52% | 34.91% | 340.18% | 32.58% | 334.41% |
| Operating profit margin | 16.84% | 17.28% | 168.40% | 17.09% | 175.43% |
| Pretax margin | 14.55% | 15.25% | 151.69% | 15.63% | 163.79% |
| Net profit margin | 11.72% | 12.57% | 122.51% | 12.91% | 132.52% |
The provided data illustrates a comprehensive overview of General Mills Inc’s profitability ratios over multiple periods, reflecting significant fluctuations and overall trends in the company's profitability metrics.
Starting with the gross profit margin, the figures exhibit substantial variability across the timeframes. On May 28, 2023, the gross profit margin was recorded at an exceptionally high 334.41%, which sharply contrasts with the 32.58% reported on May 31, 2023. Subsequent periods show a return towards higher margins, with 340.18% on May 26, 2024, and moderate declines to 34.91% on May 31, 2024, and further to 34.52% by May 31, 2025. These high ratios, particularly the anomalies exceeding 300%, may suggest extraordinary items, data inconsistencies, or the use of different measurement bases, as typical gross profit margins tend to be far lower in Mills' industry.
The operating profit margin shows a similar pattern of volatility but within a more plausible range for operational profitability. The margin on May 28, 2023, stood at 175.43%, dropping sharply to 17.09% by May 31, 2023. From there, it marginally increased to 168.40% on May 26, 2024, then stabilized at around 17.28% through May 31, 2024, and decreased slightly to 16.84% on May 31, 2025. The marked decline from the high point may reflect extraordinary operational gains or accounting adjustments in the initial period, with the subsequent stabilization aligning more closely with typical operating profit margins in the food industry.
The pretax margin ratios follow a similar trend. The initial extremely high value of 163.79% on May 28, 2023, declines significantly to 15.63% just a few days later. From there, the pretax margin remains relatively stable in the 151.69% to 14.55% range in the subsequent periods, indicating a return to more conventional profitability levels after anomalous fluctuations.
The net profit margin demonstrates the most consistent pattern of decline over time, moving from an anomalously high 132.52% on May 28, 2023, to 12.91% on May 31, 2023, and subsequently settling at around 122.51%, then slightly decreasing to 12.57%, and finally to 11.72% by May 31, 2025. The downward trend suggests a normalization of net profitability, with the margins converging towards typical levels observed in the industry, indicating that initial data anomalies or extraordinary gains may have heavily skewed earlier ratios.
Overall, the data indicates that the early reported figures for gross profit, operating profit, pretax, and net profit margins were unusually high, likely due to exceptional items, accounting changes, or measurement inconsistencies. The subsequent periods reflect a normalization towards more sustainable and industry-typical profitability margins. These trends suggest that while General Mills exhibited extraordinary profitability at certain points, the recent ratios imply a stabilized, moderate profitability consistent with industry standards, emphasizing the importance of scrutinizing the context behind the inflated initial figures for accurate financial analysis.
Return on investment
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.92% | 10.90% | 10.90% | 10.92% | 10.92% |
| Return on assets (ROA) | 6.91% | 7.93% | 7.93% | 8.25% | 8.25% |
| Return on total capital | 36.52% | 37.53% | 38.00% | 33.84% | 34.34% |
| Return on equity (ROE) | 24.84% | 26.57% | 26.57% | 24.82% | 24.82% |
The analysis of General Mills Inc. profitability ratios over the specified periods reveals several key trends. The Operating Return on Assets (Operating ROA) remained steady at approximately 10.92% from May 28 and 31, 2023, to May 26 and 31, 2024, indicating stable efficiency in generating operating income from its assets during this period. However, a noticeable decline is observed by May 31, 2025, when Operating ROA decreased to 9.92%, suggesting a reduction in operating efficiency or profit generation relative to asset base.
Similarly, the Return on Assets (ROA), which considers net income relative to total assets, maintained a consistent value of 8.25% through May 28 and 31, 2023, and 7.93% through May 26 and 31, 2024. This ratio declined further to 6.91% by May 31, 2025, indicating decreased overall profitability, possibly due to reduced net income margins or increased asset levels without proportional profit increases.
The Return on Total Capital exhibited an upward trend over the observed periods. It increased from around 33.84%–34.34% in 2023 to approximately 37.53%–38.00% in 2024, before experiencing a slight decline to 36.52% by May 2025. Overall, this suggests that the company's ability to generate returns from its total capital improved in 2024 but faced some contraction in 2025.
In terms of Return on Equity (ROE), the figures remained steady at 24.82% in 2023, increased to 26.57% in 2024, and then slightly declined to 24.84% by 2025. The rise in ROE during 2024 reflects enhanced profitability from shareholders’ equity, which may be attributable to improved net income or optimized capital structure. The subsequent slight decline in 2025 suggests a potential moderation in profit generation or changes in equity levels.
In summary, the profitability ratios indicate that General Mills experienced stable operating efficiency and overall profitability through much of 2023 and 2024, with notable improvements in 2024. However, these gains did not sustain fully into 2025, as evidenced by declines in Operating ROA, ROA, and ROE, pointing towards a moderate decrease in profitability or asset utilization in that year.