Financial Statement Analysis: General Mills, Inc.

REQUIRED:

Using the fiscal year end $2020$ annual report for General Mills, Inc. and the figures from the

$2020$ annual report as noted below, calculate the financial ratios for $2020$ and $2019$ indicated

using the EXCEL template provided:

$1.$ Gross profit percentage

$2.$ Return on sales

$3.$ Asset turnover

$4.$ Return on assets

$5.$ Return on common stockholders$$ equity

$6.$ Current ratio

$7.$ Quick ratio

$8.$ Operating$-$cash$-$flow$-$to$-$current$-$liabilities ratio

$9.$ Accounts receivable turnover

$10.$ Average collection period

$11.$ Inventory turnover

$12.$ Days$$ sales in inventory

$13.$ Debt$-$to$-$equity ratio

$14.$ Times$-$interest$-$earned ratio

$15.$ Operating$-$cash$-$flow$-$to$-$capital$-$expenditures ratio

$16.$ Earnings per share

$17.$ Price$-$earnings ratio

$18.$ Dividend yield

$19.$ Dividend payout ratio

Total assets $2020=$ $$30,806\mathrm{.}7$

Total stockholders$$ equity $2020=$ $$8,349\mathrm{.}5$

Total current liabilities $2020=$ $$7,491\mathrm{.}5$

Accounts receivable $2020=$ $$1,615\mathrm{.}1$

Inventory $2020=$ $$1,426\mathrm{.}3$

Year$-$end closing stock price May $2020=$ $$58\mathrm{.}80$

Year$-$end closing stock price May $2019=$ $$53\mathrm{.}56$

ITEM $6-$ Selected Financial Data The following table sets forth selected financial data for each of the fiscal years in the five$-$year period ended May $31,2020$: Fiscal Year In Millions, Except Per Share Data, Percentages and Ratios $2020($a$)2019201820172016$ Operating data: Net sales $ $17,626\mathrm{.}6$ $ $16,865\mathrm{.}2$ $ $15,740\mathrm{.}4$ $ $15,619\mathrm{.}8$ $ $16,563\mathrm{.}1$ Gross margin $($b$)($d$)6,129\mathrm{.}95,756\mathrm{.}85,435\mathrm{.}65,567\mathrm{.}85,843\mathrm{.}3$ Selling, general, and administrative expenses $($d$)3,151\mathrm{.}62,935\mathrm{.}82,850\mathrm{.}12,888\mathrm{.}83,141\mathrm{.}4$ Operating profit $($d$)2,953\mathrm{.}92,515\mathrm{.}92,419\mathrm{.}92,492\mathrm{.}12,719\mathrm{.}1$ Net earnings attributable to General Mills $2,181\mathrm{.}21,752\mathrm{.}72,131\mathrm{.}01,657\mathrm{.}51,697\mathrm{.}4$ Advertising and media expense $691\mathrm{.}8601\mathrm{.}6575\mathrm{.}9623\mathrm{.}8754\mathrm{.}4$ Research and development expense $224\mathrm{.}4221\mathrm{.}9219\mathrm{.}1218\mathrm{.}2222\mathrm{.}1$ Average shares outstanding: Diluted $613\mathrm{.}3605\mathrm{.}4585\mathrm{.}7598\mathrm{.}0611\mathrm{.}9$ Earnings per share: Diluted $ $3\mathrm{.}56$ $ $2\mathrm{.}90$ $ $3\mathrm{.}64$ $ $2\mathrm{.}77$ $ $2\mathrm{.}77$ Adjusted diluted $($b$)($c$)$ $ $3\mathrm{.}61$ $ $3\mathrm{.}22$ $ $3\mathrm{.}11$ $ $3\mathrm{.}08$ $ $2\mathrm{.}92$ Operating ratios: Gross margin as a percentage of net sales $($d$)34\mathrm{.}8\%34\mathrm{.}1\%34\mathrm{.}5\%35\mathrm{.}6\%35\mathrm{.}3\%$ Selling, general, and administrative expenses as a percentage of net sales $($d$)17\mathrm{.}9\%17\mathrm{.}4\%18\mathrm{.}1\%18\mathrm{.}5\%19\mathrm{.}0\%$ Operating profit as a percentage of net sales $($d$)16\mathrm{.}8\%14\mathrm{.}9\%15\mathrm{.}4\%16\mathrm{.}0\%16\mathrm{.}4\%$ Adjusted operating profit as a percentage of net sales $($b$)($c$)($d$)17\mathrm{.}3\%16\mathrm{.}9\%16\mathrm{.}6\%17\mathrm{.}6\%16\mathrm{.}8\%$ Effective income tax rate $18\mathrm{.}5\%17\mathrm{.}7\%2\mathrm{.}7\%28\mathrm{.}8\%31\mathrm{.}4\%$ Balance sheet data: Land, buildings, and equipment $ $3,580\mathrm{.}6$ $ $3,787\mathrm{.}2$ $ $4,047\mathrm{.}2$ $ $3,687\mathrm{.}7$ $ $3,743\mathrm{.}6$ Total assets $30,806\mathrm{.}730,111\mathrm{.}230,624\mathrm{.}021,812\mathrm{.}621,712\mathrm{.}3$ Long$-$term debt, excluding current portion $10,929\mathrm{.}011,624\mathrm{.}812,668\mathrm{.}77,642\mathrm{.}97,057\mathrm{.}7$ Total debt $($b$)13,539\mathrm{.}514,490\mathrm{.}015,818\mathrm{.}69,481\mathrm{.}78,430\mathrm{.}9$ Cash flow data: Net cash provided by operating activities $($e$)$ $ $3,676\mathrm{.}2$ $ $2,807\mathrm{.}0$ $ $2,841\mathrm{.}0$ $ $2,415\mathrm{.}2$ $ $2,764\mathrm{.}2$ Capital expenditures $460\mathrm{.}8537\mathrm{.}6622\mathrm{.}7684\mathrm{.}4729\mathrm{.}3$ Free cash flow $($b$)3,215\mathrm{.}42,269\mathrm{.}42,218\mathrm{.}31,730\mathrm{.}82,034\mathrm{.}9$ Share data: Cash dividends per common share $ $1\mathrm{.}96$ $ $1\mathrm{.}96$ $ $1\mathrm{.}96$ $ $1\mathrm{.}92$ $ $1\mathrm{.}78$

Baker College

ACC $1020$ Principles of Accounting I

General Mills

a

Gross profit percentage

Return on sales

Asset turnover

Return on assets

Return on common stockholders' equity

Current ratio

Quick ratio

Operating cash flow to current liabilities ratio

Accounts receivable turnover

Average collection period

Inventory turnover

Days' sales in inventory

Debt to equity ratio

Times interest earned

Operating cash flow to capital expenditures ratio

Earnings per share

Price$-$earnings ratio

Dividend yield

Dividend payout ratio

NOTES:

to calculate averages use $(($current year balance $+$ prior year balance$)()/()2)$

round percentages to $1$ decimal place; round other answers to $2$ decimal places

insert the formula here

FY $2020$

FY $2019$