EYK 14-5 Accounting Research Problem: 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 = $30,806.7 Total stockholders equity 2020 = $8,349.5 Total current liabilities 2020 = $7,491.5 Accounts receivable 2020 = $1,615.1 Inventory 2020 = $1,426.3 Year-end closing stock price May 2020 = $58.80 Year-end closing stock price May 2019 = $53.56
Fiscal Year 2017 2019 (a) 2018 2016 2015 (6) $ 16,865.2 5,756.8 $ 15,740.4 5,435.6 $ 15,619.8 5,567.8 $ 16,563.1 5,843.3 $ 17,630.3 5,967.8 2,935.8 2,515.9 1,752.7 601.6 221.9 2,850.1 2,419.9 2,131.0 575.9 219.1 2,888.8 2,492.1 1,657.5 623.8 218.2 3,141.4 2,719.1 1,697.4 754.4 222.1 3,389.9 2,071.8 1,221.3 823.1 229.4 605.4 585.7 598.0 611.9 618.8 s S 2.90 3.22 S $ 3.64 3.11 $ $ 2.77 3.08 $ $ 2.77 2.92 S S 1.97 2.86 34.1% 34.5% 35.6% 35.3% 33.8% In Millions, Except Per Share Data, Percentages and Ratios Operating data: Net sales Gross margin (c) (d) Selling, general, and administrative expenses (d) Operating profit (d) Net earnings attributable to General Mills Advertising and media expense Research and development expense Average shares outstanding: Diluted Earnings per share: Diluted Adjusted diluted (c)(e) Operating ratios: Gross margin as a percentage of net sales (d) Selling, general, and administrative expenses as a percentage of net sales (d) Operating profit as a percentage of net sales (d) Adjusted operating profit as a percentage of net sales (c) (d) (e) Effective income tax rate Balance sheet data: Land, buildings, and equipment Total assets Long-term debt, excluding current portion Total debt (c) Cash flow data: Net cash provided by operating activities (1) Capital expenditures Free cash flow (0) Share data: Cash dividends per common share 17.4% 18.1% 18.5% 19.0% 19.2% 14.9% 15.4% 16.0% 16.4% 11.8% 16.9% 17.7% 16.6% 2.7% 17.6% 28.8% 16.8% 31.4% 15.7% 33.3% $ S $ $ S 3,787.2 30.111.2 4,047.2 30,624.0 3,687.7 21,812.6 3,743.6 21,712.3 3,783.3 21,832.0 11,624.8 14,490.0 12,668.7 15,818.6 7,642.9 9,481.7 7,057.7 8,430.9 7,575.3 9,191.5 S $ $ $ $ 2.807.0 537.6 2,841.0 622.7 2,415.2 684.4 2,764.2 729.3 2,648.5 712.4 2,269.4 2.218.3 1,730.8 2,034.9 1,936.1 s 1.96 S 1.96 $ 1.92 $ 1.78 S 1.67 In fire 2019 iad Di Duffalo Not to chancolidated in Statement in Itofthit Fiscal Year 2020 (a) 2019 2018 2017 2016 $ 17,626.6 6,129.9 S 16,865.2 5,756.8 $ 15,740.4 5,435.6 S 15,619.8 5,567.8 $ 16,563.1 5.843.3 3,151.6 2,953.9 2,181.2 691.8 224.4 2,935.8 2,515.9 1,752.7 601.6 221.9 2,850.1 2,419.9 2,131.0 575.9 219.1 2,888.8 2,492.1 1,657.5 623,8 218.2 3,141.4 2,719.1 1,697.4 754.4 222.1 613.3 605.4 585.7 598.0 611.9 3.56 3.61 S S 2.90 3.22 2.77 $ $ 3.64 3.11 $ S S 2.77 3.08 $ $ s 2.92 34.8% 34.1% 34.5% 35.6% 35.3% In Millions, Except Per Share Data, Percentages and Ratios Operating data: Net sales Gross margin (b) (d) Selling, general, and administrative expenses (d) Operating profit (d) Net earnings attributable to General Mills Advertising and media expense Research and development expense Average shares outstanding: Diluted Earnings per share: Diluted Adjusted diluted (b) (c) Operating ratios: Gross margin as a percentage of net sales (d) Selling, general, and administrative expenses as a percentage of net sales (d) Operating profit as a percentage of net sales (d) Adjusted operating profit as a percentage of net sales (b) (C) (d) Effective income tax rate Balance sheet data: Land, buildings, and equipment Total assets Long-term debt, excluding current portion Total debt (b) Cash flow data: Net cash provided by operating activities (e) Capital expenditures Free cash flow (b) Share data: Cash dividends per common share 17.9% 17.4% 18.1% 18.5% 19.0% 16.8% 14.9% 15.4% 16.0% 16.4% 17.3% 18.5% 16.9% 17.7% 16.6% 2.7% 17.6% 28.8% 16.8% 31.4% s $ $ S $ 3,580.6 30,806.7 3,787.2 30.111.2 4,047.2 30,624.0 3,687.7 21,812.6 3,743.6 21,712.3 10,929.0 13,539.5 11,624.8 14,490.0 12,668.7 15,818.6 7,642.9 9,481.7 7,057.7 8,430.9 S $ S $ 3,676.2 460.8 3.215.4 2,807.0 537.6 2,269.4 $ 2,841.0 622.7 2,218.3 2,415.2 684.4 1,730.8 2,764.2 729.3 2,034.9 S 1.96 S 1.96 $ 1.96 S 1.92 $ 1.78
