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General Mills Altman Z-Score

: 2.87 (As of Today)
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Warning Sign:

Altman Z-score of 2.87 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

General Mills has a Altman Z-Score of 2.87, indicating it is in Grey Zones. This implies that General Mills is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for General Mills's Altman Z-Score or its related term are showing as below:

GIS' s Altman Z-Score Range Over the Past 10 Years
Min: 1.12   Med: 3.12   Max: 4.85
Current: 2.87

During the past 13 years, General Mills's highest Altman Z-Score was 4.85. The lowest was 1.12. And the median was 3.12.


General Mills Altman Z-Score Historical Data

The historical data trend for General Mills's Altman Z-Score 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 May12 May13 May14 May15 May16 May17 May18 May19 May20 May21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.09 1.96 2.23 2.59 2.63

General Mills Quarterly Data
May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22
Altman Z-Score 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 2.42 2.63 2.55 2.61 2.81

Competitive Comparison

For the Packaged Foods subindustry, General Mills's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, General Mills's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where General Mills's Altman Z-Score falls into.



General Mills Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

General Mills's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0581+1.4*0.5688+3.3*0.1004+0.6*2.0189+1.0*0.598
=2.87

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Feb. 2022:
Total Assets was $31,144 Mil.
Total Current Assets was $5,029 Mil.
Total Current Liabilities was $6,839 Mil.
Retained Earnings was $17,713 Mil.
Pre-Tax Income was 755.9 + 735.1 + 778 + 478.6 = $2,748 Mil.
Interest Expense was -86.5 + -92.7 + -95.9 + -102.6 = $-378 Mil.
Revenue was 4537.7 + 5024 + 4539.9 + 4523.6 = $18,625 Mil.
Market Cap (Today) was $42,534 Mil.
Total Liabilities was $21,068 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(5028.6 - 6839)/31143.8
=-0.0581

X2=Retained Earnings/Total Assets
=17713.1/31143.8
=0.5688

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2747.6 - -377.7)/31143.8
=0.1004

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=42534.236/21068.1
=2.0189

X5=Revenue/Total Assets
=18625.2/31143.8
=0.598

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

General Mills has a Altman Z-Score of 2.87 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


General Mills  (NYSE:GIS) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


General Mills Altman Z-Score Related Terms

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


General Mills Business Description

General Mills logo
Industry
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 2021, 75% 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
Walker Sean N officer: Group President NUMBER ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Church John R officer: Chief SC & GBS Officer ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Nudi Jonathon officer: Group President GENERAL MILLS, INC. ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Henry Maria director C/O THE HILLSHIRE BRANDS COMPANY 3500 LACEY ROAD DOWNERS GROVE IL 60515
Neal Diane L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: NEAL DIANE L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Jenkins Jo Ann director 2211 SOUTH 47TH STREET PHOENIX AZ 85034
Lempres Elizabeth Cahill director TWO COMMERCE SQUARE 2001 MARKET STREET, SUITE 3600 PHILADELPHIA PA 19103
Uribe Jorge A. director 5 WESTBROOK CORPORATE CENTER WESTCHESTER IL 60154
Cordani David director CIGNA CORPORATION 900 COTTAGE GROVE ROAD BLOOMFIELD CT 06002
Odland Stephen A director ONE GENERAL MILLS BLVD M03-08 MINNEAPOLIS MN 55426
Clark R Kerry director C/O THE PROCTER & GAMBLE COMPANY ONE PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Sastre Maria director C/O DARDEN RESTAURANTS, INC. 1000 DARDEN CENTER DRIVE ORLANDO FL 32837
Sprunk Eric D director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Ferguson Roger W. Jr. director INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Ogrady Shawn P officer: Group President ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426

General Mills Headlines

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