General Mills Inc (GIS)
Solvency ratios
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | |
|---|---|---|---|---|---|
| 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 | 3.59 | 3.35 | 3.35 | 3.01 | 3.01 |
The analysis of General Mills Inc.'s solvency ratios, based on the provided data, indicates an exceptionally low leverage profile with respect to debt obligations. The debt-to-assets ratio remains at zero across all reported dates, implying that the company does not utilize debt financing relative to its total assets. Similarly, the debt-to-capital ratio and debt-to-equity ratio are both consistently reported at zero throughout the periods, further corroborating the absence of leverage from debt sources.
In contrast, the financial leverage ratio shows a steady increase over the analyzed periods, rising from 3.01 in May 2023 to 3.59 in May 2025. This ratio reflects the extent to which the company's assets are financed through shareholders’ equity relative to the total assets, indicating a stable or slightly increasing reliance on leverage without involving debt.
Overall, the data suggest that General Mills Inc. maintains a highly conservative capital structure with minimal to no debt levels. The consistently zero debt ratios imply a fully equity-financed operation, contributing to a strong solvency position. The gradual increase in the financial leverage ratio may indicate a slight change in asset structure or retained earnings, but it does not currently reflect significant indebtedness. Therefore, the company's solvency profile appears robust, characterized by substantial equity backing and negligible debt obligations.
Coverage ratios
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | 6.41 | 7.08 | 7.45 | 8.93 | 9.39 |
The interest coverage ratio for General Mills Inc. demonstrates a declining trend over the analyzed period. As of May 28, 2023, the ratio stands at 9.39, indicating that the company's earnings before interest and taxes (EBIT) were sufficient to cover its interest expenses approximately 9.39 times. This ratio slightly decreased to 8.93 by May 31, 2023, suggesting a modest weakening in the company's ability to meet interest obligations within this timeframe.
Looking further ahead, projections indicate a continued decline in interest coverage, with the ratio falling to 7.45 by May 26, 2024, and further down to 7.08 by May 31, 2024. By May 31, 2025, the forecasted interest coverage ratio drops to 6.41. This downward trend implies that, while the company maintains a comfortable margin over its interest expenses, its capacity to cover interest from earnings is gradually eroding over time.
Overall, the decreasing interest coverage ratios suggest increased financial leverage or potential pressures on earnings, necessitating close monitoring of debt management and profitability levels to ensure continued financial stability.