General Mills Inc (GIS)
Solvency ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | May 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.26 | 0.00 | 0.28 | 0.00 | 0.27 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.44 | 0.00 | 0.46 | 0.00 | 0.44 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.80 | 0.00 | 0.85 | 0.00 | 0.80 | 0.00 |
| Financial leverage ratio | 3.53 | 3.63 | 3.43 | 3.35 | 3.35 | 3.27 | 3.27 | 3.33 | 3.33 | 3.05 | 3.05 | 3.01 | 3.01 | 3.05 | 3.05 | 3.09 | 3.09 | 2.94 | 2.94 | 2.99 |
General Mills Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. General Mills Inc has consistently maintained a low debt-to-assets ratio, with most values at 0.00, indicating a conservative approach to debt management and a healthy financial position.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital structure that is funded by debt. General Mills Inc has also shown a low debt-to-capital ratio, with values mostly at 0.00 or below 0.50. This suggests that the company relies more on equity financing than debt, which can reduce financial risk.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the company's leverage by comparing the amount of debt to shareholders' equity. General Mills Inc consistently maintains a low debt-to-equity ratio, with values mostly at 0.00 or below 1.00. This indicates that the company has a strong equity base relative to its debt levels.
4. Financial leverage ratio: This ratio provides a broader view of the company's financial leverage by comparing total assets to shareholders' equity. General Mills Inc's financial leverage ratio has been relatively stable, ranging from 2.94 to 3.63. Although there has been a slight increase over time, the ratio is still within a reasonable range, indicating the company's ability to effectively utilize debt in its capital structure without excessive risk.
Overall, based on the solvency ratios, General Mills Inc appears to have a solid financial position with prudent debt management practices and a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | May 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 28.30 | 13.58 | 9.36 | 7.22 | 7.37 | 7.43 | 7.55 | 8.21 | 8.50 | 7.31 | 7.14 | 6.93 | 7.10 | 7.13 | 8.36 | 8.23 | 8.51 | 9.72 | 9.09 |
The interest coverage ratio of General Mills Inc shows the company's ability to meet its interest obligations based on its earnings before interest and taxes. Looking at the historical trend, we can observe fluctuations in the interest coverage ratio over the specified periods.
From May 31, 2022, to May 31, 2023, the interest coverage ratio decreased gradually from 9.09 to 7.14, indicating a slight decline in the company's ability to cover its interest expenses. However, the ratio improved to 13.58 on August 31, 2024, signifying a significant increase in the company's ability to cover its interest payments.
Notably, on November 30, 2024, the interest coverage ratio spiked to 28.30, reflecting a substantial improvement compared to previous periods. This sharp increase could be attributed to an increase in earnings or a decrease in interest expenses during that period.
Overall, General Mills Inc's interest coverage ratio has shown variability over time, with fluctuations in the company's ability to cover its interest expenses. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and its ability to meet its debt obligations.