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General Mills (NYSE:GIS) ROE %

: 23.42% (As of Nov. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity 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 Stockholders Equity over the quarter that ended in Nov. 2022 was $10,348 Mil. Therefore, General Mills's annualized ROE % for the quarter that ended in Nov. 2022 was 23.42%.

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

GIS' s ROE % Range Over the Past 10 Years
Min: 21.18   Med: 27.99   Max: 40.71
Current: 28.76

During the past 13 years, General Mills's highest ROE % was 40.71%. The lowest was 21.18%. And the median was 27.99%.

GIS's ROE % is ranked better than
91.92% of 1769 companies
in the Consumer Packaged Goods industry
Industry Median: 6.72 vs GIS: 28.76

General Mills ROE % Historical Data

The historical data trend for General Mills's ROE % 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
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.71 26.56 28.87 26.70 27.06

General Mills Quarterly Data
Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22
ROE % 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 24.86 27.32 32.34 31.06 23.42

Competitive Comparison

For the Packaged Foods subindustry, General Mills's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution

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

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



General Mills ROE % Calculation

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

ROE %=Net Income (A: May. 2022 )/( (Total Stockholders Equity (A: May. 2021 )+Total Stockholders Equity (A: May. 2022 ))/ count )
=2707.3/( (9470.4+10542.4)/ 2 )
=2707.3/10006.4
=27.06 %

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

ROE %=Net Income (Q: Nov. 2022 )/( (Total Stockholders Equity (Q: Aug. 2022 )+Total Stockholders Equity (Q: Nov. 2022 ))/ count )
=2423.6/( (10574.8+10121.2)/ 2 )
=2423.6/10348
=23.42 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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. ROE % is displayed in the 30-year financial page.


General Mills  (NYSE:GIS) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Nov. 2022 )
=Net Income/Total Stockholders Equity
=2423.6/10348
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2423.6 / 20882.8)*(20882.8 / 31213.5)*(31213.5 / 10348)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.61 %*0.669*3.0164
=ROA %*Equity Multiplier
=7.77 %*3.0164
=23.42 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Nov. 2022 )
=Net Income/Total Stockholders Equity
=2423.6/10348
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2423.6 / 2920) * (2920 / 3243.6) * (3243.6 / 20882.8) * (20882.8 / 31213.5) * (31213.5 / 10348)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.83 * 0.9002 * 15.53 % * 0.669 * 3.0164
=23.42 %

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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


General Mills ROE % Related Terms

Thank you for viewing the detailed overview of General Mills's ROE % 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

Other Sources

General Mills Quarterly Dividend Declared

By Yahoo Finance 2023-01-30

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