General Mills Inc (GIS)
Financial leverage ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 31,469,900 | 31,469,900 | 31,451,700 | 31,451,700 | 31,090,100 |
| Total stockholders’ equity | US$ in thousands | 9,396,700 | 9,396,700 | 10,449,600 | 10,449,600 | 10,542,400 |
| Financial leverage ratio | 3.35 | 3.35 | 3.01 | 3.01 | 2.95 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $31,469,900K ÷ $9,396,700K
= 3.35
The financial leverage ratio for General Mills Inc has shown a gradual increase over the period from May 31, 2022, to May 31, 2024. It increased from 2.95 in May 2022 to 3.35 in May 2024, indicating a higher level of financial leverage. This suggests that the company has been relying more on debt financing compared to equity over the years. A higher financial leverage ratio can amplify returns on equity when times are good but also increases the risk of financial distress during economic downturns when earnings are insufficient to cover debt obligations. General Mills Inc may need to closely monitor its debt levels and ensure that it can meet its debt obligations in the long run.
Peer comparison
May 31, 2024