Using data from finance.yahoo.com look up the latest financial statements for Ge

Question

Using data from finance.yahoo.com look up the latest financial statements for General Mills and calculate A. Return on capital B. Return on equity C. Operating profit margin D. Days in inventory E. Debt ration F. Times-interest-earned G. Current ratio H. Quick ratio Using data from finance.yahoo.com look up the latest financial statements for General Mills and calculate A. Return on capital B. Return on equity C. Operating profit margin D. Days in inventory E. Debt ration F. Times-interest-earned G. Current ratio H. Quick ratio A. Return on capital B. Return on equity C. Operating profit margin D. Days in inventory E. Debt ration F. Times-interest-earned G. Current ratio H. Quick ratio

Explanation / Answer

­­All figures in thousands:

Return on Capital = (Net income - Dividends) / (Debt + Equity)
=> ($1,221,300 – $1,042,700) / ($16,188,900 + $4,996,700) = 0.0084 or 0.84%

Return on Equity = Net Income / Shareholder’s equity
=> $1,221,300/$4,996,700 = 0.244 or 24.40%

Operating Profit Margin = Operating Profit / Revenue
=> $2,077,300 / $17,630,300 = 0.1178 or 11.78%

Days in inventory = 365 / Inventory turnover
=> 365 / (Cost of Goods sold / Average Inventory)
=> 365 / [$11,681,100 / ($1,540,900 + $1,559,400)/2] = 48.44 days

Debt Ratio = Total Debt / Total Assets
=> $16,188,900 / $21,964,500 = 0.7370 or 73.70%

­

Time interest earned = EBIT / Interest Expense
=> $1,761,900 / $0 = No Value
Note: There is no interest expense in the income statement provided on the website. So, this value doesn’t apply.

Current Ratio = Current Assets / Current Liabilities
=> $3,785,700 / $4,890,100 = 0.7742

Quick Ratio = (Current Assets – Inventory) / Current Liabilities
=> ($3,785,700 - $1,540,900) / $4,890,100 = 0.4591

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.