General Mills Inc (GIS)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	2,010,000	2,558,700	2,490,600	2,365,000	2,455,200	2,493,200	2,531,200	2,534,600	2,538,000	2,557,400	2,576,800	2,456,400	2,336,000	2,327,000	2,318,000	2,584,900	2,851,800	3,068,700	3,285,600	3,125,900
Total stockholders’ equity	US$ in thousands	9,199,200	9,263,200	9,200,700	9,275,600	9,396,700	9,396,700	9,436,800	9,436,800	9,378,800	9,378,800	10,262,400	10,262,400	10,449,600	10,449,600	10,234,500	10,234,500	10,121,200	10,121,200	10,574,800	10,574,800
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%

May 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,010,000K ÷ $9,199,200K
= 21.85%

The analysis of General Mills Inc.'s return on equity (ROE) across the specified periods reveals fluctuations indicative of evolving profitability and capital efficiency. Starting from August 2022, the ROE was notably high at approximately 29.56%, peaking shortly thereafter at 31.07% in late August 2022. Subsequently, a decline ensued, with a brief rebound to around 30.32% in late November 2022 before decreasing further to approximately 28.18% by the end of November 2022.

Throughout the first half of 2023, the ROE exhibited a downward trend, declining to approximately 25.26% in late February 2023 and further to around 22.65% at the end of February. This downward movement suggested a period of reduced profitability relative to shareholders' equity. The trend persisted into mid-2023, with the ROE stabilizing slightly around the low twenties, fluctuating between 22.27% and 22.35% during May 2023.

In late August 2023, the ROE demonstrated signs of modest recovery, reaching 23.94%, and continued to improve slightly in the subsequent months, attaining about 25.11% by the end of August 2023. The third quarter of 2023 showed a gradual increase to approximately 27.27% in late November, indicating some enhancement in profitability or efficiency.

Moving into early 2024, the ROE maintained relatively stable levels around 26.86% to 26.82%, with a slight decrease noted in August 2024 to 25.50%. However, in late November 2024, the ratio again rose to roughly 27.07%. The early months of 2025 reflect a slight increase, with the ROE reaching 27.62% in February before experiencing a notable drop to 21.85% in May 2025.

Overall, the trend delineates an initial period of strong ROE in 2022, followed by a period of decline into mid-2023, succeeded by partial recovery and stabilization. The fluctuations suggest variations in profitability, asset utilization, and management efficiency over time. The recent decline in early 2025 highlights possible profitability pressures or changes in capital structure, necessitating further analysis of underlying operational and financial factors to fully interpret the drivers behind these movements.