General Mills Inc (GIS)

Operating return on assets (Operating ROA)

May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 May 26, 2024 Feb 29, 2024 Feb 25, 2024 Nov 30, 2023 Nov 26, 2023 Aug 31, 2023 Aug 27, 2023 May 31, 2023 May 28, 2023 Feb 28, 2023 Feb 26, 2023 Nov 30, 2022 Nov 27, 2022 Aug 31, 2022 Aug 28, 2022
Operating income (ttm) US$ in thousands 3,304,800 3,580,000 3,467,800 3,300,600 3,379,800 3,412,400 3,445,000 3,464,300 3,483,600 3,490,000 3,496,400 3,296,600 3,096,800 3,078,400 3,060,000 3,415,400 3,770,800 3,987,100 4,203,400 3,933,100
Total assets US$ in thousands 33,071,100 32,706,200 33,396,100 31,769,200 31,469,900 31,469,900 30,860,500 30,860,500 31,233,400 31,233,400 31,319,700 31,319,700 31,451,700 31,451,700 31,199,800 31,199,800 31,319,800 31,319,800 31,107,200 31,107,200
Operating ROA 9.99% 10.95% 10.38% 10.39% 10.74% 10.84% 11.16% 11.23% 11.15% 11.17% 11.16% 10.53% 9.85% 9.79% 9.81% 10.95% 12.04% 12.73% 13.51% 12.64%

May 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $3,304,800K ÷ $33,071,100K
= 9.99%

The analysis of General Mills Inc.'s operating return on assets (ROA) over the specified period reveals noteworthy fluctuations and underlying trends. Initially, at the end of August 2022, the operating ROA stood at 12.64%, indicating a relatively strong efficiency in generating operating income from its assets. This figure experienced a slight increase by August 31, 2022, reaching 13.51%, suggesting improved operational performance or asset utilization during that period.

Subsequent quarters display variability in operating ROA. By November 27, 2022, the ratio decreased slightly to 12.73%, and further declined to 12.04% at the end of November, signaling a modest contraction in operational efficiency. Moving into early 2023, notable declines were observed, with the ratio falling to 10.95% by February 26, 2023, and further decreasing to 9.81% on February 28, 2023. The trend persisted into May 2023, where the ROA stabilized around 9.79% to 9.85% before increasing again.

From the second half of 2023 onwards, the operating ROA demonstrated signs of recovery. By August 27, 2023, it reached 10.53%, and the subsequent period saw further increases, achieving 11.16% on August 31, 2023, and marginally rising to approximately 11.17% by November 26, 2023. This stabilization indicates a period of operational resilience. However, a slight decline was recorded afterward, with the ratio tapering to around 11.15% as of November 30, 2023.

The trend continued with minor fluctuations, and by February 2024, the operating ROA was marginally higher at 11.23%, before returning close to prior levels at 11.16% in late February. Forecasting into the mid-2024 period, the ratio experienced a decrease to approximately 10.84% by May 2024 and further to 10.74%, before declining more noticeably to 10.39% in August 2024. The latest data as of November 2024 shows the ratio near 10.38%, indicating a lower but relatively stable level of operational efficiency.

Looking forward to early 2025, the operating ROA is projected to rebound to 10.95% in February, followed by a decrease to around 9.99% in May 2025. Overall, the operating ROA for General Mills Inc. has demonstrated cyclical fluctuations within a range roughly between 9.80% and 13.50% over the analyzed timeframe. These movements reflect periods of operational strength and contraction, potentially influenced by market conditions, product mix, cost management, and overall economic factors affecting the company's asset productivity. The recent trend suggests a stabilization at levels slightly below the peak observed in late 2022, with intermittent recoveries and declines over the period.