Quesiton: Company: General Mills Inc
Financial ratios are used to assess a company's strengths and weaknesses. One way to use ratios is to compare the company under consideration to the industry average. Deriving meaning from comparative analysis has become more difficult since many companies have diversified into several different industries. Another way to use ratios, trend analysis, involves looking at the trend of a single company's ratios over time.
In this assignment you will collect and compare company and industry financial data.
Go to the Reuters website. Select the Search icon and enter the ticker symbol. Select "Companies" from the screen that follows. Follow the links to the Company Overview. Select the Financials tab. Scroll down to the "Profitability Ratios" section to find:
• the company's Net Profit Margin (TTM) and 5-Yr. Avg. and Industry Net Profit Margin (TTM) and 5-Yr. Avg.
Continue scrolling down to the "Management Effectiveness" ratios to find:
• the company's Return on Assets (TTM) and 5-Yr. Avg. and the Industry Return on Assets (TTM) and 5 Yr.-Avg.
• the company's Return on Equity (TTM) and 5-Yr. Avg. and the Industry Return on Equity (TTM) and 5 Yr.-Avg.
Review the text for in order to interpret the data. The goal is to gain some insight into what is behind the company's financial performance. Try to understand what each ratio tells you about the company's financial management practices.
Notes
• Negative numbers are reported in parenthesis and should be reported as such.
• TTM refers to trailing 12 months
Post your report in the format that follows:
Name of Company (Ticker Symbol)
Name of Industry
Profitability Ratios
Net Profit Margin
Company _____(TTM) _________ (5 Yr. Avg)
Industry Avg. _____ (TTM) _________ (5 Yr. Avg)
Over the last 12 month period, _________ has been (more or less) profitable than the average company in this industry.
Over the last 5 year period, __________ has been (more or less) profitable than the average company in this industry.
Return on Assets
Company _____(TTM) _________ (5 Yr. Avg)
Industry Avg. _____ (TTM) _________ (5 Yr. Avg)
Over the last 12 month period, _______ has earned a (higher or lower) return on assets than the average company in this industry.
Over the last 5 year period, _______ has earned a (higher or lower) return on assets than the average company in this industry.
Return on Equity
Company _____(TTM) _________ (5 Yr. Avg)
Industry Avg. _____ (TTM) _________ (5 Yr. Avg)
Over the last 12 month period, _____ has earned a (higher or lower) return on equity than the average company in this industry.
Over the last 5 year period, _______ has earned a (higher or lower) return on assets than the average company in this industry.
Recent Price: _________ (finance.yahoo.com) - Key Statistics link
52 week high ______(date); 52 week low ________(date)
Note: Enter the ticker symbol in the search box at the top of the page. On the page that follows, select the ‘1Y'option just above the price graph. Move your cursor over the graph to view date and price information.
Summarize the research you have done on your company over the past 8 weeks by answering each of the following questions:
• Is the company well-managed?
• Does its strategy allow it to differentiate itself from the competition? If so, how?
• Has the company provided adequate returns to investors?
• Is the company one you would invest in? Why or why not?