General Mills Inc – Risk Profile
- As per GlobalData's proprietary risk methodology, General Mills overall risk score is 3.25, signifying medium risk
- The company's country and operational risk pillars have boosted the overall risk profile of the company
- Low liquidity and a high proportion of debt on the balance sheet negatively impacted the financial risk scores
General Mills Inc (General Mills) has a good risk profile and is one of the leading companies based on our proprietary risk assessment of the food sector in the consumer industry. The company's country risk and operational risk scores fare better than the sector average due to its diversified operational network and broad customer base. However, low liquidity could be a cause for concern.
About the Company
General Mills manufactures and markets consumer food products. The company's product portfolio includes ready-to-eat cereals, convenient meals, baking products, pastries, snacks, yogurt, and ice cream. The company's brands include Blue Buffalo, Food Should Taste Good, Fruit Roll-Ups, Blue Basics, Cheerios, Chex, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Fruit Gushers, Gardetto's, Go-Gurt, Gold Medal, and Golden Grahams.
General Mills is one of the leaders in the food industry, with reported revenue of $18 billion in 2021, which declined 4.89% from 2020. The company's net income increased 3.24% in 2021 compared to 2020.
Risk Pillars
Our proprietary risk assessment uses a combination of four risk pillars – Country, Industry, Operational, and Financial. Scores are based on a scale of 1 to 5, 1 being the lowest risk and 5 being the highest.
General Mills' overall risk score is at par with the sector's overall score. The company's country and operational risk pillars fare better than the other risk pillars. Companies like Dali Foods Group Co Ltd, Calbee Inc, and Foshan Haitian Flavoring Food Co., Ltd. lead the sector.
Country Risk: General Mills Inc has a presence in diverse territories which insulates the company from the risk associated with economic and political factors of a specific region. The company derives a majority of its revenue came from North America (60.99%), followed by Europe and Australia (10.43%) and Latin America and Asia (8.65%) in 2020. This has resulted in a country risk score of 4.39.
Industry Risk: The company's primary exposure is from the food sector; all its revenue comes from the food business. A moderate industry risk score of 3 indicates lower profit margins and weak growth projections for the food sector compared to other sectors.
Operational Risk: Our operational risk score is based on four pillars – business positioning, scale, operational efficiency, and profitability. General Mills' large scale of operation with more than 82 brands under its umbrella enhances its portfolio of offerings. Higher margins and better return ratios also positively impacted the overall score.
Financial Risk: Low liquidity due to negative working capital cycle days affected the financial risk scores. High debt also hurt the leverage sub-pillar, resulting in a below-average financial risk score of 1.96.
About our Methodology:
GlobalData risk scorecard for a sector provides the analysis of various risks a company is vulnerable to. Our risk framework comprises four pillars – country, industry, operational and financial. The country risk for an entity signifies the risk of operating in a particular country. GlobalData's proprietary country risk assessment framework is used to calculate the risk for individual countries. Industry risk is an integral part of risk analysis, and it implies the riskiness and stability of the industries in which a company operates. The operational and financial risk profile comprises a company's risk and return potential based on its critical operational and financial metrics. Our scores are based on an average of the latest three fiscal year data.
Related Companies
Switzerland
United States of America
Brazil
United Kingdom
United States of America
United States of America
United States of America
Singapore
France
France
Still looking?
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Explorer
Access more premium companies when you subscribe to Explorer
Get in touch about GlobalData Company reports
Contact the team or request a demo to find out how our data can drive your business forward