General Mills Inc (GIS)
Interest coverage
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,570,300 | 3,588,200 | 3,673,200 | 3,389,200 | 3,128,200 |
| Interest expense | US$ in thousands | 479,200 | 382,100 | 379,600 | 420,300 | 466,500 |
| Interest coverage | 7.45 | 9.39 | 9.68 | 8.06 | 6.71 |
May 26, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,570,300K ÷ $479,200K
= 7.45
The interest coverage ratio of General Mills Inc has been fluctuating over the past five years. The ratio was highest in May 2022 at 9.68 and lowest in May 2020 at 6.71. This indicates that the company's ability to cover its interest expenses with operating profits has varied during this period. Generally, a higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations from its operating income. A decreasing trend in the interest coverage ratio may indicate an increased risk of the company facing challenges in servicing its debt in the future. Overall, General Mills Inc has maintained a moderate to strong interest coverage ratio over the past five years, which suggests a relatively healthy financial position with respect to managing interest expenses.
Peer comparison
May 26, 2024