General Mills Inc (GIS)
Solvency ratios
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.35 | 3.35 | 3.01 | 3.01 | 2.95 |
General Mills Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00% across multiple years, suggesting that the company operates with minimal debt obligations in relation to its total assets, capital structure, and equity.
Additionally, the Financial Leverage ratio has shown a slight increase over the years, from 2.95 in May 31, 2022, to 3.35 in May 31, 2024. Although this indicates a higher degree of financial leverage in the most recent period, the ratio remains relatively low overall.
Overall, General Mills Inc's solvency ratios reflect a conservative approach to managing debt and indicates a stable financial position with minimal risk associated with its debt levels.
Coverage ratios
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Interest coverage | 7.08 | 7.45 | 8.93 | 9.39 | 9.37 |
General Mills Inc's interest coverage ratios have demonstrated a gradual decline over the period from May 31, 2022, to May 31, 2024. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. In this case, General Mills Inc's interest coverage ratio has decreased from 9.37 on May 31, 2022, to 7.08 on May 31, 2024.
A higher interest coverage ratio indicates a stronger ability to meet interest obligations. The declining trend in General Mills Inc's interest coverage ratio may raise concerns about its ability to comfortably cover its interest expenses in the future. It suggests that a smaller portion of the company's operating income is available to cover interest payments, which could potentially signal increased financial risk.
Investors and creditors typically pay close attention to a company's interest coverage ratio as it provides valuable insights into the company's financial health and its ability to manage debt. General Mills Inc may need to closely monitor its interest coverage ratio and take appropriate measures to improve it to ensure financial stability and sustainability in the long run.