General Mills Inc (GIS)
Solvency ratios
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.29 | 0.31 | 0.35 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.46 | 0.51 | 0.58 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.87 | 1.03 | 1.36 |
| Financial leverage ratio | 3.35 | 3.01 | 2.95 | 3.36 | 3.82 |
General Mills Inc's solvency ratios have shown a favorable trend over the past five years. The Debt-to-assets ratio has consistently remained at 0.00 for the last two years, indicating that the company has no debt in relation to its total assets. This suggests a strong financial position and low risk of insolvency.
The Debt-to-capital ratio has also remained at 0.00 for the same period, indicating that the company is not reliant on debt to finance its operations or investments. This highlights the company's ability to fund its activities using a higher proportion of equity rather than debt.
The Debt-to-equity ratio has shown a declining trend over the past three years, decreasing from 1.36 in 2020 to 0.00 in the most recent year. This indicates that the company has reduced its reliance on debt in relation to equity, which is a positive sign of financial stability and reduced financial risk.
The Financial leverage ratio has fluctuated over the five-year period but has generally decreased from 3.82 in 2020 to 3.35 in 2024. This ratio measures the company's reliance on debt to finance its assets, with a lower ratio indicating less financial risk. Overall, the decreasing trend in the financial leverage ratio suggests that General Mills Inc has been managing its debt levels effectively and improving its solvency position.
In summary, General Mills Inc's solvency ratios reflect a strong financial position with low debt levels in relation to assets, capital, and equity. The company's prudent financial management is evident in its improving solvency metrics, which indicate a reduced risk of financial distress and a solid foundation for future growth and profitability.
Coverage ratios
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.45 | 9.39 | 9.68 | 8.06 | 6.71 |
The interest coverage ratio for General Mills Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending on May 26, 2024, the interest coverage ratio was 7.45, indicating that the company was able to cover its interest expenses 7.45 times over. This represents a decrease from the previous year's ratio of 9.39.
Despite the slight decrease in the latest year, the company's interest coverage ratios have generally been healthy and above 5, which is considered a reasonable benchmark for most industries. This suggests that General Mills Inc has had a sufficient level of earnings to cover its interest obligations comfortably over the years.
Overall, the trend in the interest coverage ratio for General Mills Inc demonstrates the company's ability to generate enough operating income to meet its interest expenses, although there may be some variations from year to year. It is important for stakeholders to continue monitoring this ratio to ensure the company maintains its ability to meet its financial obligations.