General Mills Inc (GIS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.15% | 35.37% | 35.63% | 34.74% | 34.60% | 34.25% | 34.33% | 34.97% | 35.63% | 35.63% | 35.24% | 34.32% | 33.38% | 32.95% | 32.85% | 32.44% | 31.33% | 32.18% | 32.72% | 32.80% |
| Operating profit margin | 16.96% | 18.22% | 17.66% | 16.93% | 17.22% | 17.02% | 17.02% | 17.28% | 17.55% | 17.68% | 17.61% | 16.42% | 15.23% | 15.00% | 14.91% | 16.98% | 18.73% | 20.14% | 21.37% | 20.18% |
| Pretax margin | 14.55% | 15.96% | 15.58% | 14.87% | 15.27% | 15.13% | 15.18% | 15.44% | 15.73% | 15.93% | 15.96% | 14.91% | 13.81% | 13.65% | 13.64% | 15.73% | 17.58% | 18.94% | 20.10% | 18.94% |
| Net profit margin | 10.31% | 13.03% | 12.68% | 12.13% | 12.51% | 12.43% | 12.51% | 12.65% | 12.78% | 12.95% | 12.98% | 12.23% | 11.49% | 11.34% | 11.30% | 12.85% | 14.17% | 15.50% | 16.71% | 16.04% |
The analysis of General Mills Inc. profitability ratios over the indicated period reveals various trends and insights into the company's financial performance.
Gross Profit Margin: The gross profit margin demonstrates a generally upward trend from the period around August 2022 to November 2024. Starting at approximately 32.80% in August 2022, it exhibits minor fluctuations but maintains an overall increasing trajectory, reaching a peak of approximately 35.63% in late 2023 and into early 2024. The margin sustains at this elevated level through most of 2024, indicating improved efficiency in production and cost management. However, there is a notable decline in this ratio in May 2025 to 27.15%, suggesting potential cost pressures, pricing adjustments, or changes in product mix.
Operating Profit Margin: The operating profit margin shows a generally moderate decline from around August 2022, where it stood at approximately 20.18%, dropping to a low of about 14.91% in February 2023. Subsequently, it fluctuates slightly but remains within a relatively narrow band, mostly between 15% and 17.7%. The peak appears to be around late August 2023 at approximately 17.61%, with a minor uptick toward early 2025 to about 18.22%. The overall trend indicates that while operating profitability faced downward pressure early on, it stabilized somewhat, possibly reflecting efficiency improvements or cost control measures.
Pre-Tax Margin: The pre-tax margin mirrors the trends observed in operating margins, with a decline from approximately 18.94% in August 2022 to about 13.64% in February 2023. Afterward, it fluctuates within a range of approximately 13.6% to 15.9%, with a slight upward movement toward early 2025, reaching about 15.96%. This suggests that the company's ability to retain pre-tax earnings has been relatively stable but challenged during the earlier periods of 2023.
Net Profit Margin: The net profit margin exhibits a decline over the period, starting at around 16.04% in August 2022 and gradually diminishing to approximately 10.31% in May 2025. The margin's decline indicates increased expenses, lower net income retention, or both, affecting profitability after all expenses and taxes. While there are minor recoveries at certain points, such as late 2023 where it approaches nearly 13%, the overall trend points towards narrowing net margins.
Overall Summary: The gross profit margin's improvement suggests better cost control or pricing power in recent periods, but this is offset partially by declines in net profit margins, indicating increased operating expenses or other cost factors affecting bottom-line profitability. The stabilization of operating and pre-tax margins after initial declines points to effective management strategies to contain costs. The significant drop in net profit margin by May 2025 warrants attention, implying that factors such as rising expenses, competitive pressures, or strategic cost investments might be impacting net profitability despite strong gross margins.
In conclusion, while gross profit margins have improved, indicating effective margin management at the product level, the overall net profitability has faced compression, highlighting a need for focused strategies to sustain margins through operational efficiencies and expense management.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.08% | 7.82% | 7.46% | 7.44% | 7.80% | 7.92% | 8.20% | 8.21% | 8.13% | 8.19% | 8.23% | 7.84% | 7.43% | 7.40% | 7.43% | 8.28% | 9.11% | 9.80% | 10.56% | 10.05% |
| Return on total capital | 29.43% | 37.25% | 37.74% | 35.68% | 36.36% | 38.41% | 38.60% | 38.75% | 39.23% | 43.67% | 40.02% | 37.94% | 35.31% | 30.13% | 30.61% | 16.72% | 33.94% | 20.93% | 39.15% | 21.71% |
| Return on equity (ROE) | 21.85% | 27.62% | 27.07% | 25.50% | 26.13% | 26.53% | 26.82% | 26.86% | 27.06% | 27.27% | 25.11% | 23.94% | 22.35% | 22.27% | 22.65% | 25.26% | 28.18% | 30.32% | 31.07% | 29.56% |
The analysis of General Mills Inc.'s profitability ratios over the provided periods indicates nuanced trends in operational efficiency and return metrics.
Operating Return on Assets (Operating ROA):
The Operating ROA exhibited a declining trend from its peak of approximately 13.51% on August 31, 2022, to a low of around 9.81% on February 28, 2023. Subsequently, it showed signs of recovery, reaching approximately 11.17% in November 2023 before stabilizing around 10.39% to 10.74% in mid-2024. The recent figures suggest a slight downward trajectory, with the latest data pointing to an Operating ROA of roughly 10.74% in May 2025, indicating moderate operational efficiency relative to assets.
Return on Assets (ROA):
ROA followed a similar downward trend from about 10.56% on August 31, 2022, peaking at 10.56%, then declining to approximately 7.43% by February 28, 2023. Although it experienced minor fluctuations, the overarching trend remains downward, with the latest data reflecting a significant decrease to around 6.08% in May 2025. This decline hints at diminishing profitability in relation to total assets, possibly due to increased asset bases or reduced earnings efficiency.
Return on Total Capital:
The Return on Total Capital initially fluctuated but remained relatively high in 2022 and 2023, peaking at approximately 43.67% on November 26, 2023. After this peak, a decline ensued, with figures decreasing to about 29.43% by May 2025. Despite the downward trend, the ratios still suggest that the company maintained a relatively strong return on its total capital over most of the analyzed period, though signs of contraction are evident.
Return on Equity (ROE):
ROE demonstrated a gradual decline from around 31.07% on August 31, 2022, to approximately 21.85% on May 31, 2025. The pattern signifies a diminishing ability to generate earnings attributable to shareholders’ equity, potentially impacted by changes in net income, dividend payouts, or equity levels.
Overall Interpretation:
The combined analysis of these profitability metrics indicates that General Mills experienced a period of strong profitability in late 2022 and early 2023, with peak return ratios often observed during this timeframe. However, from 2023 onward, a consistent downward trend is apparent across all profitability ratios, particularly in ROA and ROE, reflecting a possible contraction in operating efficiency and net profitability. The declines may be attributable to macroeconomic factors, increased competition, rising costs, or strategic shifts within the company. Nonetheless, the ratios remain at relatively healthy levels, suggesting that despite the downturn, the company continues to generate meaningful returns relative to its assets, capital, and equity. Further analysis of operational factors, market conditions, and strategic actions would be necessary to assess the underlying causes and future outlook.