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General Mills (NYSE:GIS) ROA %

: 7.76% (As of Nov. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. General Mills's annualized Net Income for the quarter that ended in Nov. 2022 was $2,424 Mil. General Mills's average Total Assets over the quarter that ended in Nov. 2022 was $31,214 Mil. Therefore, General Mills's annualized ROA % for the quarter that ended in Nov. 2022 was 7.76%.

The historical rank and industry rank for General Mills's ROA % or its related term are showing as below:

GIS' s ROA % Range Over the Past 10 Years
Min: 5.43   Med: 7.71   Max: 9.26
Current: 9.26

During the past 13 years, General Mills's highest ROA % was 9.26%. The lowest was 5.43%. And the median was 7.71%.

GIS's ROA % is ranked better than
82.1% of 1838 companies
in the Consumer Packaged Goods industry
Industry Median: 2.92 vs GIS: 9.26

General Mills ROA % Historical Data

The historical data trend for General Mills's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

General Mills Annual Data
Trend May13 May14 May15 May16 May17 May18 May19 May20 May21 May22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.13 5.77 7.16 7.47 8.60

General Mills Quarterly Data
Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.37 8.30 10.58 10.55 7.76

Competitive Comparison

For the Packaged Foods subindustry, General Mills's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

General Mills ROA % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, General Mills's ROA % distribution charts can be found below:

* The bar in red indicates where General Mills's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.



General Mills ROA % Calculation

General Mills's annualized ROA % for the fiscal year that ended in May. 2022 is calculated as:

ROA %=Net Income (A: May. 2022 )/( (Total Assets (A: May. 2021 )+Total Assets (A: May. 2022 ))/ count )
=2707.3/( (31841.9+31090.1)/ 2 )
=2707.3/31466
=8.60 %

General Mills's annualized ROA % for the quarter that ended in Nov. 2022 is calculated as:

ROA %=Net Income (Q: Nov. 2022 )/( (Total Assets (Q: Aug. 2022 )+Total Assets (Q: Nov. 2022 ))/ count )
=2423.6/( (31107.2+31319.8)/ 2 )
=2423.6/31213.5
=7.76 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Nov. 2022) net income data. ROA % is displayed in the 30-year financial page.


General Mills  (NYSE:GIS) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Nov. 2022 )
=Net Income/Total Assets
=2423.6/31213.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2423.6 / 20882.8)*(20882.8 / 31213.5)
=Net Margin %*Asset Turnover
=11.61 %*0.669
=7.76 %

Note: The Net Income data used here is four times the quarterly (Nov. 2022) net income data. The Revenue data used here is four times the quarterly (Nov. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


General Mills ROA % Related Terms

Thank you for viewing the detailed overview of General Mills's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


General Mills (NYSE:GIS) Business Description

General Mills logo
Traded in Other Exchanges
Address
Number One General Mills Boulevard, Minneapolis, MN, USA, 55426
General Mills is a leading global packaged food company that produces snacks, cereal, convenient meals, yogurt, dough, baking mixes and ingredients, pet food, and superpremium ice cream. Its largest brands are Nature Valley, Cheerios, Old El Paso, Yoplait, Pillsbury, Betty Crocker, BLUE, and Haagen-Dazs. In fiscal 2022, 77% of its revenue was derived from the United States, although the company also operates in Canada, Europe, Australia, Asia, and Latin America. While most of General Mills' products are sold through retail stores to consumers, the company also sells products into the food-service channel and the commercial baking industry.
Executives
C Kim Goodwin director C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Karen Wilson Thissen officer: General Counsel & Secretary 1098 AMERIPRISE FINANCIAL CENTER, MINNEAPOLIS MN 55474
Paul Joseph Gallagher officer: Chief Supply Chain Officer 1 GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Jaime Montemayor officer: Chief Technology Officer NUMBER ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Mark A Pallot officer: Chief Accounting Officer NUMBER ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Jo Ann Jenkins director 2211 SOUTH 47TH STREET, PHOENIX AZ 85034
Dana M Mcnabb officer: Group President NUMBER ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Elizabeth Cahill Lempres director TWO COMMERCE SQUARE, 2001 MARKET STREET, SUITE 3600, PHILADELPHIA PA 19103
Sean N Walker officer: Group President NUMBER ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Diane L Neal director
Jodi J Benson officer: Chief Innovation Officer GENERAL MILLS, INC., ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Maria Sastre director C/O DARDEN RESTAURANTS, INC., 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Bishop William W Jr officer: Group President C/O BLUE BUFFALO PET PRODUCTS, INC., 11 RIVER ROAD, WILTON CT 06897
Kofi A Bruce officer: Vice President GENERAL MILLS, INC., ONE GENERAL MILLS BLVD., MINNEAPOLIS MN 55426
Ivan Pollard officer: Senior Vice President GENERAL MILLS, INC., ONE GENERAL MILLS BLVD., MINNEAPOLIS MN 55426

General Mills (NYSE:GIS) Headlines

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