General Mills Inc (GIS)
Return on total capital
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,570,300 | 3,588,200 | 3,673,200 | 3,389,200 | 3,128,200 |
| Long-term debt | US$ in thousands | — | — | 9,134,800 | 9,786,900 | 10,929,000 |
| Total stockholders’ equity | US$ in thousands | 9,396,700 | 10,449,600 | 10,542,400 | 9,470,400 | 8,058,500 |
| Return on total capital | 38.00% | 34.34% | 18.67% | 17.60% | 16.48% |
May 26, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,570,300K ÷ ($—K + $9,396,700K)
= 38.00%
General Mills Inc's return on total capital has been on an upward trend over the past five years, reflecting improved utilization of its total capital base for generating profits. The return on total capital increased from 16.48% in 2020 to 38.00% in 2024, indicating a significant enhancement in the company's efficiency in generating returns on the investments made in both equity and debt. This suggests that General Mills has been effectively leveraging its capital resources to generate higher profits and create value for its stakeholders. The consistent improvement in return on total capital demonstrates the company's ability to efficiently allocate its resources and manage its operations effectively to generate higher returns relative to the capital employed.
Peer comparison
May 26, 2024