General Mills Inc (GIS)
Return on total capital
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,570,300 | 3,614,300 | 3,432,900 | 3,428,100 | 3,588,200 | 3,789,800 | 3,900,100 | 3,905,200 | 3,673,200 | 3,237,700 | 3,231,400 | 3,360,200 | 3,389,200 | 3,646,800 | 3,465,200 | 3,342,500 | 3,128,200 | 2,866,400 | 2,857,700 | 2,584,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | 8,140,200 | 8,622,500 | 8,474,600 | 9,134,800 | 10,944,700 | 10,973,600 | 10,326,900 | 9,786,900 | 9,766,600 | 10,952,500 | 10,832,900 | 10,929,000 | 11,589,600 | 10,953,100 | 11,619,800 |
| Total stockholders’ equity | US$ in thousands | 9,396,700 | 9,436,800 | 9,378,800 | 10,262,400 | 10,449,600 | 10,234,500 | 10,121,200 | 10,574,800 | 10,542,400 | 9,812,900 | 9,524,500 | 9,692,300 | 9,470,400 | 8,890,300 | 8,550,000 | 8,444,600 | 8,058,500 | 7,575,100 | 7,712,300 | 7,382,800 |
| Return on total capital | 38.00% | 38.30% | 36.60% | 33.40% | 34.34% | 20.63% | 20.81% | 20.50% | 18.67% | 15.60% | 15.76% | 16.78% | 17.60% | 19.55% | 17.77% | 17.34% | 16.48% | 14.96% | 15.31% | 13.60% |
May 26, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,570,300K ÷ ($—K + $9,396,700K)
= 38.00%
General Mills Inc's return on total capital has shown a fluctuating trend over the past several quarters. The company's return on total capital has been steadily increasing from 13.60% in November 2019 to 38.30% in February 2024, indicating improved efficiency in generating profits relative to its total capital employed.
The return on total capital peaked at 38.30% in February 2024, demonstrating a strong performance in effectively utilizing its resources to generate returns for shareholders. However, it slightly decreased to 38.00% in May 2024, which may be attributed to changes in the company's capital structure or operational efficiency.
Overall, General Mills Inc has demonstrated a relatively healthy return on total capital ranging between 13.60% to 38.30% over the past few years, showcasing its ability to efficiently deploy its capital to generate earnings. It is important for investors and analysts to monitor this metric to track the company's profitability and effectiveness in utilizing its capital resources.
Peer comparison
May 26, 2024