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General Mills Interest Coverage

: 7.09 (As of May. 2020)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. General Mills's Operating Income for the three months ended in May. 2020 was USD 841 Mil. General Mills's Interest Expense for the three months ended in May. 2020 was USD -119 Mil. General Mills's interest coverage for the quarter that ended in May. 2020 was 7.09. The higher the ratio, the stronger the company's financial strength is.

NYSE:GIS' s Interest Coverage Range Over the Past 10 Years
Min: 5.35   Med: 7.9   Max: 9.09
Current: 6.38

5.35
9.09

NYSE:GIS's Interest Coverage is ranked lower than
57% of the 1202 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 8.24 vs. NYSE:GIS: 6.38 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


General Mills Interest Coverage 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
May11 May12 May13 May14 May15 May16 May17 May18 May19 May20
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.69 8.87 6.71 5.35 6.30

General Mills Quarterly Data
Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20
Interest Coverage 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 5.75 5.65 6.78 5.98 7.09

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 Interest Coverage Distribution

* The bar in red indicates where General Mills's Interest Coverage falls into.



General Mills Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

General Mills's Interest Coverage for the fiscal year that ended in May. 2020 is calculated as

Here, for the fiscal year that ended in May. 2020, General Mills's Interest Expense was USD -473 Mil. Its Operating Income was USD 2,978 Mil. And its Long-Term Debt & Capital Lease Obligation was USD 11,206 Mil.

Interest Coverage=-1* Operating Income (A: May. 2020 )/Interest Expense (A: May. 2020 )
=-1*2978.3/-472.5
=6.30

General Mills's Interest Coverage for the quarter that ended in May. 2020 is calculated as

Here, for the three months ended in May. 2020, General Mills's Interest Expense was USD -119 Mil. Its Operating Income was USD 841 Mil. And its Long-Term Debt & Capital Lease Obligation was USD 11,206 Mil.

Interest Coverage=-1* Operating Income (Q: May. 2020 )/Interest Expense (Q: May. 2020 )
=-1*841/-118.6
=7.09

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

The higher the ratio, the stronger the company's Financial Strength is.


General Mills  (NYSE:GIS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


General Mills Interest Coverage Related Terms


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