General Mills Inc (GIS)

Financial leverage ratio

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Total assets	US$ in thousands	31,469,900	30,860,500	31,233,400	31,319,700	31,451,700	31,199,800	31,319,800	31,107,200	31,090,100	31,143,800	32,481,600	32,332,200	31,841,900	32,648,800	32,307,600	31,262,200	30,806,700	30,248,700	30,452,400	30,313,200
Total stockholders’ equity	US$ in thousands	9,396,700	9,436,800	9,378,800	10,262,400	10,449,600	10,234,500	10,121,200	10,574,800	10,542,400	9,812,900	9,524,500	9,692,300	9,470,400	8,890,300	8,550,000	8,444,600	8,058,500	7,575,100	7,712,300	7,382,800
Financial leverage ratio		3.35	3.27	3.33	3.05	3.01	3.05	3.09	2.94	2.95	3.17	3.41	3.34	3.36	3.67	3.78	3.70	3.82	3.99	3.95	4.11

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 few quarters, ranging from 2.94 to 4.11. The ratio peaked at 4.11 in the fourth quarter of 2019, indicating a high level of financial leverage during that period. Subsequently, the ratio decreased gradually but still remained above 3, which suggests the company was operating with moderate to high financial leverage.

The trend in the financial leverage ratio indicates that General Mills Inc has been utilizing debt to finance its operations and investments. A higher ratio indicates a greater reliance on debt financing, which can amplify returns but also increase financial risk. Conversely, a lower ratio suggests a lower level of debt in the capital structure, providing more stability but potentially limiting growth opportunities.

Investors and stakeholders should monitor the financial leverage ratio of General Mills Inc to assess the company's ability to manage debt obligations and maintain financial stability. Additionally, management should focus on maintaining an optimal balance between debt and equity to support long-term growth and profitability.