1

GENERAL MILLS
 SUMMARY 2

 In 2020, net sales increased by 4.51% to USD 17626.6 M from USD 16,865.2 M
in 2019.
 In 2020, the operating profit increased by 6.48% to USD 6,129.9 M from USD
5756.80 M in 2019.
 In 2020, the liquidity ratio value increased to 0.68 from 0.59 in 2019.
 In 2020, the asset ratio value increased to 0.57 from 0.56 in 2019.
 In 2020, the Debt Utilization Ratio value decreased to 0.44 from 0.48 in 2019.
 In 2020, the Profitability Ratio value increased to 0.18 from 0.13 in 2019.
 LIQUIDITY RATIO 3

 General Mills' liquidity ratio value increased to 0.68 in 2020 from 0.59 in 2019.
However, the liquidity ratios are below the average performance of the food
industry in US.

General Mills (in Millions) US Food Industry



May 31, 2020 May 26, 2019 Year 2019 Year 2018

Current Assets $ 5,121.30 $ 4,186.50 n/a n/a

Current Liabilities $ 7,491.50 $ 7,087.10 n/a n/a

Liquidity Ratio 0.68 0.59 1.90 1.95

 ASSET RATIO 4

 General Mills' liquidity ratio value increased to 0.68 in 2020 from 0.59 in 2019.
However, the liquidity ratios are below the average performance of the food
industry in US.

General Mills (in Millions) US Food Industry

May 31, 2020 May 26, 2019 Year 2019 Year 2018

Current Assets $ 5,121.30 $ 4,186.50 n/a n/a

Current Liabilities $ 7,491.50 $ 7,087.10 n/a n/a

Liquidity Ratio 0.68 0.59 1.90 1.95

 DEBT UTILIZATION RATIO 5

 General Mills' Debt Utilization Ratio value decreased to 0.44 in 2020 from 0.48 in
2019. Besides, the value is below the average ratio in US Food industries. This
indicates that the company has a better financial health compared to its
counterparts.

General Mills (In Millions) US Food Industry

Year 2020 Year 2019 Year 2019 Year 2018

Total Debt $ 13,539.50 $ 14,490.00 n/a n/a

Total Assets $ 30,806.70 $ 30,111.20 n/a n/a

Debt Utilization Ratio 0.44 0.48 0.55 0.57

 PROFITABILTY RATIO 6

 General Mills' Profitability Ratio value increased to 0.18 in 2020 from 0.13 in
2019. Besides, the value is above the average ratio in US Food industries. This
indicates that the company has higher returns compared to its counterparts.

General Mills (In Millions) US Food Industry

Year 2020 Year 2019 Year 2019 Year 2018

Net Income $ 3,215.40 $ 2,269.40 n/a n/a

Sales revenue $ 17,626.60 $ 16,865.20 n/a n/a

Profitability Ratio 0.18 0.13 0.06 0.024

 WEIGHTED AVERAGE COST OF 7

CAPITAL
WACC: Blended      

    Weight Rate

Debt $ 13,539.50 62.69% 2.74%

Equity $ 8,058.50 37.31% 2.09%

Pro Rate     4.83%

 DRIVERS OF FREE CASH FLOW 8

Free cash flow  

Drivers  

Sales 1.68%

Gross Margin 1.33%

Operating cash flow 14.30%

Working Capital -15.32%

Cap ex -10.78%
 FREE CASH FLOW 9

Forecast Year 1 Forecast Year 2 Forecast Year 3 Forecast Year 4 Forecast Year 5 Forecast Year 6
Sales $ 17,922.73 $ 19,141.47 $ 20,443.09 $ 21,833.22 $ 23,317.88 $ 24,903.50
Gross Margin $ 6,211.43 $ 6,294.04 $ 6,377.75 $ 6,462.57 $ 6,548.53 $ 6,635.62
Operating Cash Flow $ 3,215.40 $ 3,675.20 $ 4,200.76 $ 4,801.46 $ 5,488.07 $ 6,272.87
Working Capital $ (2,746.25) $ (2,933.00) $ (3,132.44) $ (3,345.44) $ (3,572.94) $ (3,815.89)
Cap ex $ (1,932.24) $ (2,063.63) $ (2,203.96) $ (2,353.83) $ (2,513.89) $ (2,684.83)
Free cash flow $ (1,463.09) $ (1,321.43) $ (1,135.64) $ (897.81) $ (598.75) $ (227.86)
PRESENT AND TERMINAL VALUES 10

Discount 1 2 3 4 5
Present Value $ (1,533.68) $ (1,385.18) $ (1,190.44) $ (941.13) $ (627.64) $ (238.85)
Terminal value $ (1,094.35)
$ (1,533.68) $ (1,385.18) $ (1,190.44) $ (941.13) $ (1,721.99)
 CONCLUSION 11

 According to the generated financial model, the company is projected to have a

negative free cash flow (in the five years) and a negative terminal.
 This indicates that the company will be unable to generate enough cash to support
its business operations.
 Therefore, the company must improve its financial performance to support its
future growth.