General Mills Analysis - 1563 Words

Financial Analysis: General Mills Inc. The following financial analysis is primarily focusing on the performance of General Mills Inc for the year 2010 when compared to 2009, but a historic trend of the past 5 financial years is also being taken into account. Balance Sheet Analysis: The Current Assets for GIS decreased for FY10 by nearly 2% compared to FY09, primarily due to a decline in quick assets, namely cash and cash equivalents. The company experienced a terrific growth period in FY08 when current assets grew by around 16%. Since then though, the company has witnessed slight reduction in the current assets portfolio. The Fixed Assets for GIS follow the same pattern as Current Assets, peaking in FY08 and then dwindling again. The†¦show more content†¦The short term liquidity position for the company peaked in FY09, which was still disturbing as it stood below 1X the ability to meet its short term liabilities. The dip for FY10 is again due to a decline in its cash and cash equivalents, or quick assets, which were utilized to pay taxes. The cash ratio and quick ratio follow a similar pattern and are at levels which put the company at risk, as well as major stakeholders. Working Capital is again in the red zone, dropping more than 75% from FY09 to FY10. However, the historic trend for the company is not very impressive, with working capital dropping as low as -$3 billion. The Operating Cash Flow Ratio is somewhat more reassuring, standing at 18.13 in FY10 from 14.67 a year earlier. This implies that for every dollar of current liability, the operations are providing $18 of revenue to cover the expense. However, operations are not primarily meant to cover just short term obligations, but also long term costs. Thus it cannot be justified that operations are very adequate to meet ST obligations. Leverage Ratios: General Mills Inc. is a highly leveraged company. Although most of the key leverages are minutely down compared to the standing in FY09, they are still very high, which means that ifShow MoreRelatedA Cost Analysis of General Mills1973 Words   |  8 PagesGENERAL MILLS, INCORPORATED A Cost Accounting Analysis COMPANY BACKGROUND General Mills (GSI) is the sixth largest food company in the world. The company currently operates in more than 100 foreign countries and employs over 35,000 people. . GSI manufactures and markets branded consumer foods worldwide and supplies branded and unbranded food products to the foodservice and commercial baking industries. The company manufactures cereals, yogurt, ready-to-serve soup, dry dinners, frozen vegetablesRead MoreMarketing Analysis : General Mills989 Words   |  4 PagesGeneral Mills is a company that has strategically developed and growth through mergers and acquisitions. Mergers are the fusion of two companies that join forces to compete in the market. 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