General Mills Financial Analysis - 1073 Words

General Mills - Generating Balanced Growth From ready-to-eat cereal to convenient meals to wholesome snacks, General Mills is one of the biggest food products manufacturers and competes in growing food categories that are on-trend with consumer tastes around the world. The company markets many well-known brands, such as Haagen Daazs, Yoplait, Betty Crocker, Totinos, and Cheerios, among others. Main rivals include Kellogg, Kraft, Conagra Foods, and Sara Lee. General Mills sells its products in three segments: U.S. retail (63% of net sales), International (25% of net sales), and Bakeries and Foodservices (12% of net sales). In addition, General Mills sells cereals and ice cream through its Cereal Partners Worldwide and Haagen Daazs Japan†¦show more content†¦Efficiency improvement was primarily supported by inventory reduction efforts that, coupled with increase in accounts payable derived from shifts in timing of payments, reduced the cash conversion cycle to 43 days. It is worth noting that during fiscal 2012 the bal ance sheet had an important growth as a result of the acquisition of the international Yoplait business, including goodwill and other intangible assets of $2.3 bn USD. Sales growth also benefited from the acquisition and will be discussed in the next section. General Mills runs a leveraged operation where, in average, the total assets are 3 times shareholders equity. Leverage ratio has decreased since 2010 as retained earnings have increased at a faster pace than assets driven by strong business performance. A slight revamp in the leverage ratio during fiscal 2012 was mainly driven by an increase in other comprehensive losses related to pensions and postemployment activity, and foreign currency translation that offset retained earnings for the same period. Sustainable growth while generating strong levels of cash flows General Mills has shown a strong, sustainable growth throughout the last years. Net sales increase has been driven by a moderate average growth in the US Retail segment (3.8%), coupled with the expansion in the International business (13.4%). The big year on year increase ofShow MoreRelatedHistorical and Financial Analysis of General Mills736 Words   |  3 PagesHISTORICAL AND FINANCIAL ANALYSIS GENERAL MILLS (GIS) DUPONT ANALYSIS When analyzing the DuPont model, we determined that GIS has a higher profit margin, low asset turnover ratio, and low financial leverage versus the industry average, leading GIS not to perform with the same efficiency as the Industry Composite. GIS’s return on equity (ROE) was 28.25% in 2011, dipped to 24.41% in 2012, and then rose to 27.80% in 2013. GIS three-year average ROE of 26.82% is below the industry three-year median ofRead MoreGeneral Mills Inc. Understanding Financial Statements Essay1733 Words   |  7 PagesIntroduction The case study General Mills Inc. - Understanding Financial Statements focuses on the most basic idea of finance analysis. This case is a brief look into the language that is used in the finance world and a start to interaction with auditors. In this case, KPMG LLP, the public accounting firm that was auditing their statements, had sent two opinion letters. The first letter was ensuring that both parties were aware that General Mills had internal control over financial reporting. 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The main goals of these companies are to meet consumers’ needs and preferences while generating superior returns by delivering consistent growth in sales and earnings, coupled with an attractive dividend yield. This report shows how each company meets their goalsRead MoreModule 1 ACC501 Case1051 Words   |  5 Pagesanalyze and compare the financial statements of General Mills and the Meiji Holdings Company Limited, which are amongst the largest firms in the food industry. I will also talk about the accounting standards, the differences between both company’s annual statements and the differences between Annual Reports, a 10-K and the Corporate Social Responsibility Report. General Mills and Meiji Holdings Company Limited utilizes different accounting standards. General Mills uses the Financial Accounting StandardsRead MoreGeneral Mills Analysis1563 Words   |  7 PagesFinancial Analysis: General Mills Inc. The following financial analysis is primarily focusing on the performance of General Mills Inc for the year 2010 when compared to 2009, but a historic trend of the past 5 financial years is also being taken into account. Balance Sheet Analysis: The Current Assets for GIS decreased for FY10 by nearly 2% compared to FY09, primarily due to a decline in quick assets, namely cash and cash equivalents. The company experienced a terrific growth period in FY08 whenRead MoreThe Coca Mass Foods And Bisco Misr839 Words   |  4 Pagesat the DuPont Analysis it is clear that General Mills has the slow and steady strategy when it comes to the three main factors profit margin, asset turnover and financial leverage. With that consistency their return on equity has been steady in the 24% -28% ranges, where Kellogg has a more volatile ROE. Kellogg over the years has done really well with asset turnover and keeping their inventory at relatively low levels. However, Kellogg uses more leverage in comparison to General Mills which helps inflateRead MoreGeneral Mills Inc. Executive Summary1129 Words   |  5 Pages| General Mills Inc. | Executive Summary | | Xiao(Cynthia) Chen | 2012/4/24 | | Executive Overview General Mills (NYSE:GIS), our company, is a global consumer foods company. We develop distinctive value-added food products and market with our unique brand names. We work continuously to improve our established products and to create new products that meet our customers’ potential needs and preferences. Our company has $14.88 billion in sales last year. Our sales has grown substantiallyRead MoreStudent1522 Words   |  7 Pagesintended to get you started on your analysis and to focus your attention on a few critical points. They are not necessarily the final goal of your analysis. Oracle Systems: 1. TYPO: The two quarterly figures, $230,187 and $174,673, listed as â€Å"General and admin† in Exhibit 1 should be listed as â€Å"Total operating expenses†. 2. NOTE: Exhibit 6 presents common-sized financials for the industry, not Oracle systems. 3. On a scale of 1 to 100, rate the financial health of Oracle Systems in 1989 andRead MoreKellogg Company : An American Multinational Food Manufacturing Company1268 Words   |  6 Pagesinvestment and credit recommendations.   Ã‚  Ã‚   We have identified General Mills as the closest competitor of Kellogg’s Company as both the companies function in the same segment of the market of convenience and ready to eat consumer products sold through retail chains. Both the companies are more than a century old and product portfolio extends over a large number of well known brands sold worldwide. In terms of revenue Kellogg’s Company and General Mills are comparable with $ 14.8 billion and $ 16.6 billion