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General Mills (NYSE:GIS) Operating Margin %

: 15.53% (As of Nov. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. General Mills's Operating Income for the three months ended in Nov. 2022 was $811 Mil. General Mills's Revenue for the three months ended in Nov. 2022 was $5,221 Mil. Therefore, General Mills's Operating Margin % for the quarter that ended in Nov. 2022 was 15.53%.

Good Sign:

General Mills Inc operating margin is expanding. Margin expansion is usually a good sign.

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

GIS' s Operating Margin % Range Over the Past 10 Years
Min: 14.87   Med: 16.58   Max: 18.58
Current: 15.9


GIS's Operating Margin % is ranked better than
86.32% of 1798 companies
in the Consumer Packaged Goods industry
Industry Median: 4.56 vs GIS: 15.90

General Mills's 5-Year Average Operating Margin % Growth Rate was 1.10% per year.

General Mills's Operating Income for the three months ended in Nov. 2022 was $811 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2022 was $3,080 Mil.


General Mills Operating Margin % Historical Data

The historical data trend for General Mills's Operating Margin % 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
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.43 16.73 16.90 18.58 17.14

General Mills Quarterly Data
Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22
Operating 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 15.97 14.38 19.64 13.91 15.53

Competitive Comparison

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

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

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



General Mills Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: May. 2022 ) / Revenue (A: May. 2022 )
=3255.2 / 18992.8
=17.14 %

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

Operating Margin %=Operating Income (Q: Nov. 2022 ) / Revenue (Q: Nov. 2022 )
=810.9 / 5220.7
=15.53 %

* 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.


General Mills  (NYSE:GIS) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


General Mills Operating Margin % Related Terms

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

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