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General Mills Gross Margin %

: 34.72% (As of Aug. 2019)
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Gross Margin % is calculated as gross profit divided by its revenue. General Mills's Gross Profit for the three months ended in Aug. 2019 was $1,390 Mil. General Mills's Revenue for the three months ended in Aug. 2019 was $4,003 Mil. Therefore, General Mills's Gross Margin % for the quarter that ended in Aug. 2019 was 34.72%.


NYSE:GIS' s Gross Margin % Range Over the Past 10 Years
Min: 33.74   Max: 40.01
Current: 34.6

33.74
40.01

During the past 13 years, the highest Gross Margin % of General Mills was 40.01%. The lowest was 33.74%. And the median was 35.61%.

NYSE:GIS's Gross Margin % is ranked higher than
65% of the 1565 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 26.30 vs. NYSE:GIS: 34.60 )

General Mills had a gross margin of 34.72% for the quarter that ended in Aug. 2019 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for General Mills was -0.40% per year.


General Mills Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

General Mills Annual Data
May10 May11 May12 May13 May14 May15 May16 May17 May18 May19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.74 35.20 35.65 34.53 34.13

General Mills Quarterly Data
Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19
Gross Margin % 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 32.80 34.22 34.37 35.11 34.72

Competitive Comparison
* 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.


General Mills Gross Margin % Distribution

* The bar in red indicates where General Mills's Gross Margin % falls into.



General Mills Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

General Mills's Gross Margin for the fiscal year that ended in May. 2019 is calculated as

Gross Margin % (A: May. 2019 )=Gross Profit (A: May. 2019 ) / Revenue (A: May. 2019 )
=5756.8 / 16865.2
=(Revenue - Cost of Goods Sold) / Revenue
=(16865.2 - 11108.4) / 16865.2
=34.13 %

General Mills's Gross Margin for the quarter that ended in Aug. 2019 is calculated as


Gross Margin % (Q: Aug. 2019 )=Gross Profit (Q: Aug. 2019 ) / Revenue (Q: Aug. 2019 )
=-2613 / 4002.5
=(Revenue - Cost of Goods Sold) / Revenue
=(4002.5 - 2613) / 4002.5
=34.72 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


General Mills  (NYSE:GIS) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

General Mills had a gross margin of 34.72% for the quarter that ended in Aug. 2019 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


General Mills Gross Margin % Related Terms


General Mills Gross Margin % Headlines

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