General Mills Inc (GIS)

Financial leverage ratio

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Total assets	US$ in thousands	31,469,900	31,451,700	31,090,100	31,841,900	30,806,700
Total stockholders’ equity	US$ in thousands	9,396,700	10,449,600	10,542,400	9,470,400	8,058,500
Financial leverage ratio		3.35	3.01	2.95	3.36	3.82

May 26, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $31,469,900K ÷ $9,396,700K
= 3.35

The financial leverage ratio of General Mills Inc has shown some fluctuations over the past five years. In May 2024, the financial leverage ratio stood at 3.35, indicating that the company's level of debt relative to its equity was higher compared to the previous year. This suggests that General Mills may be relying more on debt financing to support its operations and growth initiatives.

In the prior year, May 2023, the financial leverage ratio was 3.01, showing a slight decrease from the year before. This could imply that General Mills made efforts to reduce its debt levels or that its equity base grew relative to its debt obligations.

In May 2022, the financial leverage ratio was 2.95, which was lower compared to the previous two years. A lower financial leverage ratio indicates a lower level of debt relative to equity, suggesting that General Mills had a stronger equity position to support its operations.

The financial leverage ratio then increased to 3.36 in May 2021, indicating a higher level of debt compared to the previous year. This could suggest that General Mills took on more debt during that period, possibly for investment or expansion purposes.

Lastly, in May 2020, the financial leverage ratio was 3.82, the highest among the five years analyzed. This indicates that General Mills had a relatively higher level of debt compared to equity in that year, potentially signaling financial risks associated with higher leverage.

Overall, the trend in General Mills Inc's financial leverage ratio shows variability over the years, highlighting the company's changing capital structure and debt management strategies. It would be important for stakeholders to monitor these ratios to assess the company's financial risk and ability to meet its debt obligations.