General Mills Inc (GIS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,570,300 | 3,614,300 | 3,432,900 | 3,428,100 | 3,588,200 | 3,789,800 | 3,900,100 | 3,905,200 | 3,673,200 | 3,237,700 | 3,231,400 | 3,360,200 | 3,389,200 | 3,646,800 | 3,465,200 | 3,342,500 | 3,128,200 | 2,866,400 | 2,857,700 | 2,584,700 |
| Interest expense (ttm) | US$ in thousands | 479,200 | 461,100 | 437,700 | 411,400 | 382,100 | 382,000 | 370,200 | 371,400 | 379,600 | 377,700 | 397,200 | 405,100 | 420,300 | 436,300 | 440,100 | 458,900 | 466,500 | 472,700 | 493,700 | 507,000 |
| Interest coverage | 7.45 | 7.84 | 7.84 | 8.33 | 9.39 | 9.92 | 10.54 | 10.51 | 9.68 | 8.57 | 8.14 | 8.29 | 8.06 | 8.36 | 7.87 | 7.28 | 6.71 | 6.06 | 5.79 | 5.10 |
May 26, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,570,300K ÷ $479,200K
= 7.45
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Looking at the interest coverage ratio trend for General Mills Inc over the past few quarters, we can see a relatively stable range with values typically above 5. This demonstrates that General Mills has consistently generated sufficient earnings to cover its interest expenses.
The interest coverage ratio has shown some fluctuations, ranging from a low of 5.10 to a high of 10.54. The ratio peaked in recent quarters, indicating a strong ability to meet interest payments. However, it's worth noting that the ratio dipped to 5.10 in the earliest data point, suggesting a slightly weaker interest coverage at that time.
Overall, General Mills Inc's interest coverage ratios reflect a solid financial position with a consistent ability to meet its interest payment obligations. Investors and creditors may find this stability and strength favorable indicators of the company's financial health.
Peer comparison
May 26, 2024