Caso general mills

Campbell Soup Co. (7/31/94) Hershey Foods Corp. (12/31/93) Kellogg Company (12/31/93) Phillip Morris Companies (12/31/93) Quaker Oats Company (6/30/94) Borden, Inc. (12/31/93) Average of Six Companies


1. Profitability Ratios
Profit margin 9,40% 8,50% 10,80% 7,10% 3,90% -1,00% 5,00% 6,50% -1,50%
Return on assets 12,60% 10,40% 16,10% 7,00% 7,60% -1,50%8,70% 8,70% 0,00%
Return on equity 31,70% 21,10% 39,70% 30,70% 19,00% -23,10% 19,90% 19,90% 0,00%

2. Activity Ratios
Asset turnover 1,35 1,26 1,53 1 2,03 1,2 1,4 1,40 0,00%
Days' receivables 33 25 31 29 30 42 31,7 31,70 0,00%
Inventory turnover 4,73 4,16 6,65 3,4 7,45 6,66 5,5 5,50 0,00%

3. Leverage Ratios
Debt to equity28,20% 11,70% 30,40% 129,20% 170,40% 504,60% 145,80% 145,80% 0,00%
Times interest earned 12,6 15,7 26,6 5,2 4,8 0,7 10,9 10,90 0,00%
Days' payables 45,9 20,9 41,4 44,5 53,8 41,9 41,4 41,40 0,00%

4. Liquidity Ratios
Current ratio 0,96 1,09 1,03 0,87 1 0,94 1 1,00 0,00%
Quick ratio 0,4 0,38 0,52 0,28 0,52 0,32 0,4 0,40 0,00%

5. MarketRatios
Price/earnings ratio 14,7 22,8 19,3 15,8 21,7 NA 18,9 18,90 -
Dividend yield 3,00% 2,30% 2,30% 4,80% 3,00% 5,30% 3,50% 3,50% 0,00%


Ratio Analysis
Calculate the following ratios for General Mills for the last two fiscal years and compare with the industry averages from Exhibit 1


Latest Year Previous Year Industry
Profitability Ratios (in %)Return on equity (ROE) 40,82% 41,53% 19,90%
Return on assets (ROA) 9,04% 10,88% 8,70%
Profit margin 5,52% 6,22% 5,00%

Turnover-Control Ratios
Asset turnover 1,64 1,75 1,40
Days' receivable 13,27 12,90 31,70
Inventory turnover 9,13 9,79 5,50

Leverage Ratios
Debt to equity 341% 282% 145,80%
Times interest earned 10,07 13,38 10,90
Days' payable 53,25 52,4041,40

Liquidity Ratios
Current ratio 0,62 0,69 1,00
Acid test 0,35 0,41 0,40

Market Ratios
Price/earnings ratio 19,83 21,94 18,90
Dividends yield 3,21% 2,47% 3,50%
V Other Questions

A How would you go about choosing comprable companies to General Mills? How would you calculate an industry average?CONSOLIDATED STATEMENTS OF EARNINGS IFORMACIÓN DE 6 EMPRESAS DE LA INDUSTRIA DE ALIMENTOS

Geneal Mills Campbell Soup Co Hershey Foods Corp. Kellogg Company Phillip Morris Companies Quaker Oats Company Borden, Inc. Average of Six Companies Average of Five Companies

Sales 100% 100% 100% 100% 100% 100% 100% 100% 100%
Costs and expensesCosts of sales 52,35% 56,20% 54,30% 43,30% 50,80% 46,30% 68,50% 53,20% 53,72%
Selling general and administrative 32,35% 24,60% 29,70% 35,50% 29,50% 40,70% 20,80% 30,10% 30,26%
Depreciation and amortization 3,57% 3,50% 2,90% 4,20% 3,20% 2,90% 5,30% 3,70% 3,76%
Total costs and expense 88,27% 84,30% 86,90% 83,00% 83,50% 89,90% 94,60% 87,00% 87,74%
Operating income 11,73% 15,70%13,10% 17,00% 16,50% 10,10% 5,40% 13,00% 12,26%
Interest expense 1,16% 1,30% 1% 0,70% 2,90% 1,70% 2,30% 1,70% 1,40%
Other expenses (income) 1,72% 0,40% 2,50% 0,10% -1,30% -2,10% -3,90% -0,70% -0,60%
Earnings from continuing Operations before taxes 8,84% 14,80% 14,60% 16,40% 12,30% 6,30% -0,80% 10,60% 10,26%
Income taxes 3,33% 5,40% 6,10% 5,60% 5,20% 2,40% -0,20% 4,10% 3,86%Earnings from Continuing Operations 5,51% 9,40% 8,50% 10,80% 7,10% 3,90% -0,60% 6,50% 6,40%
Discontinued Operations after Taxes and other 0,00% 0,00% -3% -1% 0 -10,40% -2,40% -2,68%
Cumulative Effect to May 31, 1993 of Accounting Changes 0,00% 0,00% 0,00%
Net Earnings 5,52% 9,40% 5,50% 10,80% 6,10% 3,90% -11,00% 4,10% 3,72%
Net Sales 8.516,90 6.690,00 3.488,20...