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.