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  • Publicado : 8 de mayo de 2011
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I. Ratio Analysis
Calculate the following ratios for General Mills for the last two fiscal years and compare with industry averages from Exhibit 1.

Latest Year Previous Year IndustryA. Profitability Ratios
Profit margin 5.52% 6.22% 5.00%
Return on Assets (ROA) 9.04% 10.88% 8.70%
Return on Equity (ROE) 40.82% 41.53% 19.90%

B. Activity Ratios
Asset turnover 1.61.7 1.4
Days' receivables 13.3 12.9 31.7
Inventory turnover 9.1 9.8 5.5

C. Leverage Ratios
Debt ratio 75.51% 73.80% 145.80%
Times interest earned 10.1 13.4 10.9
Days' payable 53.2 52.441.4

D. Liquidity Ratios
Current ratio 0.6 0.7 1
Quick ratio 0.2 0.2 0.4

E. Market Ratios
Price/earnings ratio 20.1 22.0 18.9
Dividend yield 3.17% 2.47% 3.50%
II. Common SizeBalance Sheet Analysis

A. Calculate a common size balance sheet for the last two fiscal years. Use the total assets line for each years as the denominator in each calculation.Latest Year Previous Year
Total Current Assets 21.72% 23.16%
Land, Buildings and Equipment, at cost 59.49% 61.49%
Other Assets 18.78% 15.36%
Total Assets 100.00%100.00%
Total current liabilities 35.24% 33.52%
Long-term Debt 27.26% 27.27%
Deferred Income Taxes 9.37% 9.84%
Other Liabilities 3.63% 3.17%
Total Liabilities 75.51%73.80%
Common Stock 7.18% 7.71%
Retained earnings 47.28% 49.12%
Common Stock in treasury -25.67% -25.72%
Unearned ESOP compensation -3.08% -3.60%
Cumulative foreingexchange earnings adjustment -1.21% -1.31%
Total Equity 22.15% 26.20%
Total Liabilities and Stockholders' Equity 100.00% 100.00%


B. How does General Mills' balancesheet compare with those other food and consumer products companies highlighted in Exhibit 2?

ACTIVOS
General Mills tiene el 22% del activo a corto plazo e cula menor que...
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