Investment Thesis
General Mills demonstrates solid profitability with strong operating margins (21.6%) and healthy ROE (20.6%), supported by consistent free cash flow generation ($1.3B). However, weak liquidity metrics (0.56x current ratio), elevated leverage (1.18x debt/equity), and declining net income (-1.0% YoY) temper enthusiasm, suggesting a mature business managing debt burden rather than experiencing growth.
GIS Strengths
- Strong operating margin of 21.6% indicates efficient core business operations
- Robust free cash flow of $1.3B demonstrates ability to service debt and fund operations
- Solid return on equity of 20.6% reflects efficient use of shareholder capital
- Healthy interest coverage ratio of 7.7x shows manageable debt servicing capacity
GIS Risks
- Critically weak current ratio of 0.56x and quick ratio of 0.36x indicate potential liquidity stress
- Elevated debt-to-equity ratio of 1.18x with $11.0B long-term debt creates financial inflexibility
- Net income declining year-over-year (-1.0%) despite stable revenue suggests margin pressure
- Low gross margin of 10.7% typical of commodity food industry leaves limited pricing power
Key Metrics to Watch
- Net income trend and margin progression in coming quarters
- Working capital management and current ratio improvement trajectory
- Debt reduction progress and debt-to-equity ratio movement
- Operating cash flow sustainability and free cash flow consistency
GIS Financial Metrics
GIS Profitability Ratios
GIS Balance Sheet & Liquidity
GIS 5-Year Financial Trend
5-Year Trend Summary: GENERAL MILLS INC's revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.31 reflects profitable operations.
GIS Growth Metrics (YoY)
GIS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $4.4B | $303.1M | $0.56 |
| Q2 2026 | $4.9B | $413.0M | $0.78 |
| Q1 2026 | $4.5B | $579.9M | $1.03 |
| Q3 2025 | $4.8B | $625.6M | $1.12 |
| Q2 2025 | $5.1B | $595.5M | $1.02 |
| Q1 2025 | $4.8B | $579.9M | $1.03 |
| Q3 2024 | $5.1B | $553.1M | $0.92 |
| Q2 2024 | $5.1B | $595.5M | $1.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GIS Capital Allocation
GIS SEC Filings
Access official SEC EDGAR filings for GENERAL MILLS INC (CIK: 0000040704)