General Mills Inc (GIS)
Operating return on assets (Operating ROA)
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,281,200 | 3,431,700 | 3,431,700 | 3,433,800 | 3,433,800 |
| Total assets | US$ in thousands | 33,071,100 | 31,469,900 | 31,469,900 | 31,451,700 | 31,451,700 |
| Operating ROA | 9.92% | 10.90% | 10.90% | 10.92% | 10.92% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $3,281,200K ÷ $33,071,100K
= 9.92%
The operating return on assets (operating ROA) for General Mills Inc. exhibits a relatively stable trend over the observed periods, with minor fluctuations. As of May 28 and May 31, 2023, the operating ROA is reported at 10.92%, indicating that the company was able to generate approximately 10.92 cents of operating income for each dollar of assets employed during that period. This stability extends into the subsequent year, with the figures slightly adjusting to 10.90% by May 26 and May 31, 2024, reflecting a marginal decline of 0.02 percentage points, which suggests consistent operational efficiency and asset utilization.
A notable change occurs in the period ending May 31, 2025, where the operating ROA decreases more significantly to 9.92%. This approximately 1 percentage point decline from the previous years indicates a potential dip in operational profitability or an increase in asset base without a commensurate increase in operating income. This downward movement may signal a period of operational challenges, increased costs, or strategic investments that have yet to yield comparable returns.
Overall, the trend suggests that while General Mills had maintained a stable operating efficiency around 10.9% in the prior periods, there has been a modest yet noteworthy decline in the latest period. This change warrants further analysis to understand the underlying causes, including factors such as changes in sales, cost structure, or asset base, to assess its implications for the company's operational performance and future profitability outlook.
Peer comparison
May 31, 2025