GROUP ASSIGNMENT

ACC101 - SUMMER 2024

Report Analyze
Class
And Compare The Financial
MKT1905
Ratios Of General
Group members Phan Minh DuyMills And Oatly Group
- SS181129
Nguyễn Thị Thùy Linh – SS181058
Ab ForBùiThe
Thị Yến3 Vi Years
- SS181036 2021- 2023
Võ Trà My - SS181124
Nguyễn Minh Quân - SS181072
Subject code ACC101
Lecturer Nguyễn Thị Quế Anh

1
 TABLE OF CONTENTS
I. INTRODUCTION...................................................................................................................3
1. General Mills, Inc. (GIS)........................................................................................................3
2. Oatly Group AB (NASDAQ: OTLY).....................................................................................3
II. ANALYZE AND COMPARE THE INDICATORS OF TWO COMPANY........................3
1. The formula and meanings of ratios................................................................................3
2. Summary figures table.....................................................................................................4
3. Analyze, compare the performance in the ratios of of the two company with chart.......6
3.1. Acid-test ratio........................................................................................................6
3.2. Current ratio..........................................................................................................7
3.3. Gross profit margin..............................................................................................7
3.4.Net Profit Margin...................................................................................................8
3.5.Return on Assets.....................................................................................................9
3.6.Accounts Receivable Turnover..............................................................................9
3.7.Days’ Sales Uncollected.......................................................................................10
3.8. Inventory Turnover..............................................................................................11
3.9.Days' Sales in Inventory.......................................................................................11
3.10. Debt to Equity...................................................................................................12
3.11.Times Interested Earned (Interest Coverage Ratio)...........................................13
III. CONCLUSION...................................................................................................................14
IV. REFERENCE.....................................................................................................................14
VI. APPENDICES....................................................................................................................15
Appendices 1: All detailed calculations of General Mills company.................................15
Appendices 2: All detailed calculations of Oatly Group AB company.............................17
Appendices 3: Audited Financial Statements/ 10-K Filings used to back up ratios of
General Mills company.....................................................................................................19
Appendices 4: Audited Financial Statements/ 10-K Filings used to back up ratios of
Oatly Group AB company.................................................................................................21
I. INTRODUCTION.

In this report, we will analyze the financial statistics of General Mills and Oatly Group AB,
include liquidity, profitability, turnover and leverage ratio. From that information we will
have feedback about the financial situation of these company.

1. General Mills, Inc. (GIS)

General Mills, which became an official company in 1928. This is an American multinational
manufacturer and marketer, they focused on consumer foods such as cereals, snacks, and
organic foods,.. In addition, it is also known for its diverse products, high nutritional food and
is also a community company thanks to its environmental policy and support of farmers in
bringing planetary health. (General Mills, 2024)

2. Oatly Group AB (NASDAQ: OTLY)

Oatly Group AB is an oatmeal company which deals in different dairy products W/O base -
based dairy products from Europe, Middle East, Africa and America and Asia oats. The
company has several products. Oatly Group AB was established in the year 1994. The former
company was called Havre Global AB before it rebranded to the Oatly Group AB in March of
the year 2021. The company was established in Malmo – a city in the southern part of
Sweden. (Oatly Group AB, 2024)

II. ANALYZE AND COMPARE THE INDICATORS OF TWO COMPANY

1. The formula and meanings of ratios

Quick Assets
 Acid-test ratio = =
Current Liabilities
Cash+ Short−term investment + Receivable
Current Liabilities

- Acid-test ratio show ability the company cover short term liabilities use most liquid
assets (A. Hayes, 2024)

Current Assets
 Current ratio =
Current Liabilities

- The current ratio is a liquidity metric that assesses a company’s ability to pay short-
term obligations or those due within one year ( J. Fernando, 2024)

Net Sales−Cost Of Goods Sold

 Gross Profit Margin =
Net Sales

- Gross Profit Margin this is crucial financial metric to evaluate a company’s financial.
It show the profit of company after sutracting the cost of good sold from net sales
( A. Bloomenthal, 2024)
 Net income
 Net Profit Margin =
Net sales

- The net profit margin understrood is the percentage of profit a company have from
total revenue (B.Murphy, 2024)

Net income
 ROA =
Average invested assets

- Return one Assets ( ROA) ability measure a company profit compare with total
assets. ( M . Hargrave, 2024)

Net sales
 Accounts Receivable Turnover =
Average accounts receivable

- The account receivable turnover show ability mananger and control average accounts
recevable balance . ( B.Murphy, 2024)

Accounts Receivable
 Days’ Sales Uncollected = x 365
Net Sales

- Day’s sales uncollected understood ability control period customer will pay their
credit card ( D. Vaidva, 2024)

Cost of goods sold

 Inventory Turnover =
Avg . inventory

- The inventory that show measures how company treament inventory of company ( J.
Fernando, 2024)

Ending Inventory
 Days' Sales in Inventory = x 365
Cost of goods sold

- Days sales of inventory that is time to company sales inventory measures time in day
(A. Hayes, 2024)

Total Liabilities
 Debt to Equity =
Total Equity

- The debit to equity ratio is a financial measures extent to company support to

operations compare to owns resours (J. Fernando, 2024)

EBIT
 Interest Coverage Ratio =
Interest Expense

- The interest coverage ratio that show ability how company can pay the interest on
outstanding debits. (A. Hayes, 2024)
2. Summary figures table.
 2021 2022 2023 3.
General Mills Oatly Group AB

Liquidity

Acid-test ratio 0.38 2,81 0,28 0,59 0,3 0,68

Current ratio 0.7 3,32 0,63 1,41 0,69 0,83

Profitability

35,57 33,71 32,58

Gross Profit Margin 24,10% 11,08% 19,41%
% % %

12,91 14,25 - 12,91

Net Profit Margin -33,02% -53,24%
% % 54,35% %

Return on Assets 7,47% -18,41% 8,60% -27,51% 8,29% -35,61%

Turnover ratio

Receivable Turnover 11,14 7,28 11,41 7,0 11,91 7,32

Days Sales Receivable 32,76 50,17 32 52,17 30,66 49,83

(uncollected) days days days days days days

Inventory Turnover 7,19 7,24 6,83 6,11 6,71 6,92

56,9 71,52 54,13 65,06 32,25

Days’ Sales in Inventory 58,51
days days days days days

Leverage

Debt to Equity 2,2 0,31 1,88 0,55 1,94 2,33

Times Interested Earned

7,8 13,58 9,46 23,76 9,22 6,62
(Interest Coverage Ratio)
3. Analyze, compare the performance in the ratios of of the two company with chart.

3.1. Acid-test ratio

Figure 1: Acid-test ratio

General Mills: It’s ratio is less than 1, which shows that the business is likely to have low
liquid ratio and have difficulty to transfer asset into cash.

Oatly Group AB: This ratio is greater than 1 in 2021, which shows that the business has
enough assets and cash to be able to pay off its current debt without needing to sell inventory.
But these ratios tend to decrease sharply and are less than 1 in 2022 and 2023, which shows
that businesses may have difficulty converting assets into cash.

Comparing two companies: Oatly Group AB has higher debt capacity than General Mills due
to its better ability to convert assets into cash without selling inventory. However, investors
should be more careful because Oatly Group AB tends to have a decreasing acid test ratio.
3.2.Current ratio

Figure 2: Current ratio

General Mills: It’s ratio is less than 1, which shows that the business is likely to have
difficulty paying its liabilities in the near future.

Oatly Group AB: Its ratio is greater than 1 in 2021, which shows that the business has ability
to be able to pay off its debts in the near future. But by 2022, the ratio had decreased by more
than half, and in 2023 the ratios decreased lower than 1, this show the company can have
difficulty in paying its liabilities in the near future.

Compare two companies: Although the ability of Oatly Group AB to pay off its debt in the
near future tends to decrease, Oatly Group AB still has a higher ability to pay its debts than
General Mills because it has higher current ratio than General Mills.

3.3. Gross profit margin

Figure 3: Gross profit margin

General Mills: This business generates quite high profits and has an advantage in product
pricing.

Oatly Group AB: For manufacturing, a company's ratio can be considered low, indicating that
the company is making little profit and may be having difficulty competing on price.

Compare two companies: Compared to Oatly Group AB, General Mills has a competitive
advantage in terms of price in the market and generates more profits.

3.4. Net Profit Margin

Figure 4: Net Profit Margin

General Mills: company have the ability to control production costs to create profits.

Oatly Group AB: this company has a negative ratio, showing that it is having difficulty
controlling costs and having difficulty generating profits.

Compare two companies: General Mills is more able to control costs and generate profits than
Oatly Group AB.
3.5.Return on Assets

Figure 5: Return on Assets

General Mills: this company has a fairly low ratio, which shows that it has low profitable and
has ineffective in using the company’s assets to generate profit.

Oatly Group AB: the company's ratio shows that the company has extremely low profitable
and not generating profits from its assets and this ratio tends to decrease over time.

Compare two companies: although General Mills does not make much profit, compared to
Oatly Group AB, General Mills makes a profit on their assets and Oatly Group AB does not.
3.6.Accounts Receivable Turnover

Figure 6: Receivable Turnover

General Mills: the ratio of General Mills shows that the number of debt collections during the
year is high, meaning the company has high effective level in collecting debts.

Oatly Group AB: It's ratio shows that the number of debt recovery times during the year is
also quite high, meaning the company also has high effective level of debts recovery.

Compare two companies: this ratio of both companies is a positive ratio, but compared to
Oatly Group AB, General Mills has a much higher debt recovery ratio and higher effective
level in collecting debts.

3.7.Days’ Sales Uncollected

Figure 7: Days’ Sales Uncollected

General Mills: A low ratio shows that the business collects debt quickly, which is often a sign
of effective credit policies and customers paying on time.

Oatly Group AB: This company's high ratio shows that the business takes a long time to
collect debts, customers do not pay on time or the credit policy is lax. But this ratio is
decreasing over time which signifies a good thing.

Comparing the two companies: Although Oatly Group AB's ratio has tended to decrease over
time, indicating that collection times are decreasing, General Mills's ratio remains lower and
more stable.

3.8. Inventory Turnover

Figure 8: Inventory Turnover

General Mills: This company's high ratio shows that the company sells inventory quickly, but
this ratio tends to decrease each year.

Oatly Group AB: This company's high ratio shows that the company is selling inventory
quickly but this ratio is not stable. From 2021 to 2022 this ratio tends to decrease, from 2022
to 2023, this ratio tends to increase.

Compare the two companies: both companies have high rates, sell inventory quickly, and
respond well to market demand. But especially in 2022, General Mills is slightly better than
Oatly Group AB.
3.9.Days' Sales in Inventory

Figure 9: Days’ Sales in Inventory

General Mills: the ratio of company is a not good indicator in the product industry, showing
that the company is selling inventory inefficiently and need a lot of days to sell out of
inventory.

Oatly Group AB: the ratio of company is high and tends to decrease sharply over time, in
2023 it will decrease by nearly half compared to 2022. This shows that the company tends to
have a short storage period and is increasingly efficient in selling out of inventory.

Compare two companies: compared to General Mills, Oatly Group AB has a high ratio in
2021 and 2022, but in 2023, Oatly Group AB's ratio drops sharply and tends to decrease over
time, Oatly Group AB has an advantage in selling inventory over General Mills.

3.10. Debt to Equity

Figure 10: Debt to equity

General Mills: ratio in 3 years is quite high and greater than 1, this show that the company use
more liabilities than equity to finance for business activity, it means the company has high
financial risk.

Oatly Group AB: the ratio in 2021-2022 is lower than 1 and within a safe level because the
company does not use much debt to finance assets, but in 2023, this increase many times
more than in 2022, showing that the company is using debt to invest more but that means
higher risk of default.

Compare two companies: compared to Oatly Group AB, General Mills has a more stable
ratio, but it has high financial rirk in the last three years. Oatly Group AB has lower financial
risk than General Mills in 2021 and 2022, but is tend to higher in 2023, this is a bad signal.

3.11.Times Interested Earned (Interest Coverage Ratio)

Times Interested Earned

30

24.85
25

20

14.66
15

10 9.46 9.22
7.8
6.91
5

0
2021 2022 2023

General Mills Oatly Group AB

Figure 11: Times Interested Earned (Interest Coverage Ratio)

General Mills: the company has a high and relatively stable ratio over 3 years, showing that it
can easily meet interest costs and has low risk for creditors.

Oatly Group AB: the 2023 ratio shows that the company meets its interest expenses well, but
2 years ago, the ratio was too high, indicating that the company is not effectively managing
financial leverage. Overall, this company is still a low-risk company for investors and
creditors.

Compare two companies: in general, the two companies are able to meet interest expenses
well and bring little risk to creditors, but company General Mills's ratio is more stable than
company Oatly Group AB's.
III. CONCLUSION

In the long term, General is a safer and lower-risk company for investors than Oatly, because
this company has the ability to control costs very well, is able to compete in terms of price
and generate high profits. Besides, it also has good debt recovery ability, effectively manages
economic leverage and the ratios are more stable than Oatly.

IV. REFERENCE
1. General Mills (2024). About General Mills. Available at:
https://www.generalmills.com/about-us/about-general-mills (Accessed: 9 June, 2024)

2. General Mills (2023). Annual report pursuant to section 13 or 15(d) of the securities
exchange act of 1934 for the fiscal year ended may 28, 2023. Available at:
https://d18rn0p25nwr6d.cloudfront.net/CIK-0000040704/5ea56bcd-aa55-4648-9181-
789bf48d4b2e.pdf (Accessed: 23 June, 2024)

3. General Mills (2021). Annual report pursuant to section 13 or 15(d) of the securities
exchange act of 1934 for the fiscal year ended may 30, 2021. Available at:
https://d18rn0p25nwr6d.cloudfront.net/CIK-0000040704/ffe886af-6392-450f-bbdd-
fdcd1cd6c099.pdf (Accessed: 23 June, 2024)

4. Oatly Group (2024). About Oatly Group.Available at:

https://investors.oatly.com/financial-information/annual-reports (Accessed: 17 June,
2024)

5. Oatly Group (2021).Annual report and Consolidated financial statements for Oatly
Group AB Financial year 2021. Available at:
https://investors.oatly.com/static-files/96af9396-0e39-41c2-879b-dbf2c0bfdc0f
(Accessed: 17 June, 2024)

6. Oatly Group (2022).Annual report and Consolidated financial statements for Oatly
Group AB Financial year 2022. Available at:
https://investors.oatly.com/static-files/bf1c5c4a-dcb8-4c79-8d12-ca080a452e75
(Accessed: 17 June, 2024)

7. Oatly Group (2023). Annual report and Consolidated financial statements for Oatly
Group AB Financial year 2023. Available at:
https://investors.oatly.com/static-files/4f290fa2-4ef7-4ee3-b5ba-df68d0c0a92b.
(Accessed: 17 June, 2024)

8. A. Hayes (2024). Acid – Test Ratio : Definition , Formula , and Example .Available
at : Acid-Test Ratio: Definition, Formula, and Example (investopedia.com).
(Accessed: 26 June, 2024)
 9. J. Fernando (2024). Current Ratio Explained With Formula and Examples. Available
at : Current Ratio Explained With Formula and Examples (investopedia.com).
(Accessed: 26 June, 2024)

10. A. Bloomenthal (2024) . Gross Profit Margin : Formula and What It Tells You .
Availble at : Gross Profit Margin: Formula and What It Tells You
(investopedia.com). (Accessed: 26 June, 2024)

11. B.Murphy (2024).What Is Net Profit Margin ? Formula and example . Available at :
What Is Net Profit Margin? Formula and Examples (investopedia.com). (Accessed:
26 June, 2024)

12. M . Hargrave (2024). Return on Assets ( ROA) : Fromula and “Good “ ROA
Defined . Available at : Return on Assets (ROA): Formula and "Good" ROA Defined
(investopedia.com). (Accessed: 26 June, 2024)

13. B.Murphy (2024). Receivable Turnover Ratio: Formula , Importance, Example , and
Liminations. Available at : Receivables Turnover Ratio: Formula, Importance,
Examples, and Limitations (investopedia.com). (Accessed: 26 June, 2024)

14. D. Vaidva (2024). What Is Days Sales Uncollected . Available at : Day’s Sales
Uncollected - What Is It, Components, Example (wallstreetmojo.com). (Accessed: 26
June, 2024)

15. J. Fernando (2024). Inventory Turnover Rato : What It Is , How It Work , and
Formula. Available at : Inventory Turnover Ratio: What It Is, How It Works, and
Formula (investopedia.com). (Accessed: 26 June, 2024)

16. A. Hayes (2024). Days Sale Of Inventory (DSI) : Definition ,Formula,Important.

Available at : Days Sales of Inventory (DSI): Definition, Formula, Importance
(investopedia.com). (Accessed: 26 June, 2024)

17. J. Fernando (2024). Debt – to – Equity ( D/E) Ratio Formula and How to Interpret It .
Available at : Debt-to-Equity (D/E) Ratio Formula and How to Interpret It
(investopedia.com). (Accessed: 26 June, 2024)

18. A. Hayes (2024). Interest Coverage Ratio: Formula ,How It Works , and Example .
Available at : Interest Coverage Ratio: Formula, How It Works, and Example
(investopedia.com). (Accessed: 26 June, 2024)

VI. APPENDICES

Appendices 1: All detailed calculations of General Mills company.

1.1. Liquidity
a. Acid-test ratio
 Quick Assets
Acid-test ratio = =
Current Liabilities
Cash+ Short−term investment + Receivable
Current Liabilities
1,505.2+ 1,638.5
2021 = = 0,38
8,265.8

569.4+1,692.1
2022 = = 0,28
8,019.9
585.5+1,683.2
2023 = = 0,3
7,535.7
b. Current ratio

Current Assets
Current ratio =
Current Liabilities
5,754.5
2021 = = 0,7
8,265.8
5,089.8
2022 = = 0,63
8,019.9
5,176.4
2023 = = 0,69
7,535.7
1.2 Profitability
a. Gross Profit Margin

Net Sales−Cost Of Goods Sold

Gross Profit Margin =
Net Sales
18,127−11,678.7
2021 = ∗100 = 35.57%
18,127.0
18,992.8−12,590.6
2022 = ∗100 = 33,71%
18,992.8
20,094.2−13,548.4
2023 = ∗100 = 32,58%
20,094.2
b. Net Profit Margin

Net income
Net Profit Margin =
Net sales
2,339.8
2021 = ∗100 = 12,91%
18,127.0
2,707.3
2022 = ∗100 = 14,25%
18,992.8
2593.9
2023 = ∗100 = 12,91%
20094.2
c. Return on Assets

Net income
ROA =
Average invested assets
2,339.8
2021 = ∗100 = 7,47%
31,324.3
 2,707.3
2022 = ∗100 = 8,6%
31,466.0
2,593.9
2023 = ∗100 = 8,29%
31,270.9
1.3 Turnover ratio
a. Receivable Turnover and Days Sales Receivable (uncollected)
Net sales
● Accounts Receivable Turnover =
Average accounts receivable

18,127.0
2021 = = 11,14 times
1,626.8
18,992.8
2022 = = 11,41 times
1,665.3
20,094.2
2023 = = 11,91 times
1,687 ,7
Accounts Receivable
● Days’ Sales Uncollected = x 365
Net Sales

1,626.8
2021 = x 365 = 32,76 days
18,127.0
1,665.3
2022 = x 365 = 32 days
18,992.8
1,687 ,7
2023 = x 365 = 30,66 days
20,094.2
b. Inventory Turnover and Days’ Sales in Inventory
Cost of goods sold
● Inventory Turnover =
Avg . inventory

11,678.7
2021 = = 7,19 times
1,623.4
12,590.6
2022 = = 6,83 times
1,843.9
13,548.4
2023 = = 6,71 times
2,019.7
Ending Inventory
● Days' Sales in Inventory = x 365
Cost of goods sold

1,820.5
2021 = x 365 = 56,9 days
11,678.7
1,867.3
2022 = x 365 = 54,13 days
12,590.6
2,172.0
2023 = x 365 = 58,51 days
13,548.4
1.4 Leverage
a. Debt to Equity

Total Liabilities
Debt to Equity =
Total Equity
 21,463.8
2021 = = 2,2
9,773.2
20,302.1
2022 = = 1,88
10,788.0
20,751.7
2023 = = 1,94
10,700.0
b. Times Interested Earned (Interest Coverage Ratio)

EBIT
Interest Coverage Ratio =
Interest Expense
3,277.7
2021 = = 7,8
420.3
3,589.2
2022 = = 9,46
379.6
3,522.6
2023 = = 9,22
382.1

Appendices 2: All detailed calculations of Oatly Group AB company.

2.1 Liquidity

a. Acid-test ratio

Quick asset
Acid-test ratio = =
Current liabilities
Cash+ Short−term investment + Receivable
Current Liabilities

295,572+ 249,937+105,519+27,711
2021 = = 2,81
234,387

82,644+100,955+17,818
2022 = = 0,59
341,907

249,299+112,951+33.820
2023 = = 0,68
583,655

b. Current ratio

Current asset
Current ratio =
Current Liabilities

807,064
2021 = = 3,32
243,387

482,251
2022 = = 1,41
341,907
 483,385
2023 = = 0,83
583,655

2.2. Profitability

a. Gross Profit Margin

Net sale−Cost Of Good Sold

Gross Profit Margin = * 100
Net sale

643,190−488,177
2021 = * 100 = 24,1 %
643,190

722,238−642,211
2022 = * 100 = 11,08 %
722,238

783,348−631,265
2023 = * 100 = 19,41 %
783,348

b. Net Profit Margin

Net income
Net Profit Margin = * 100
Net sales

−212,393
2021 = *100 = -33,02 %
643,190

−392,567
2022 = * 100 = -54,35 %
722,238

−417,060
2023 = * 100 = -53,24 %
783,348

c. Return on Assets

Net income
Return on Assets = * 100
Average total assets

−212,393
2021 = *100 = 18,41 %
1,153920 ,

−392,567
2022 = *100 = 27.51 %
1,427,054

−417,060
2023 = *100 = 35,61 %
1,186,084

1.3. Turnover ratio

a. Receivable Turnover and Days Sales Receivable (uncollected)

 Net sales
● Receivable Turnover =
Average accounts receivable

643,190
2021 = = 7.28 times
88,408

722,238
2022 = = 7.0 times
103,237

783,348
2023 = = 7,32 times
106,953

Accounts receivable
● Days Sales Receivable = * 365
Net sales

88,408
2021 = ∗365 = 50,17 days
643,190

103,237
2022 = ∗365 = 52,17 days
722,238

106,953
2023 = ∗365 = 49,83 days
783,348

b. Inventory Turnover and Days’ Sales in Inventory

Cost Of Good Sold

● Inventory Turnover =
Avg . inventory

488.177
2021 = = 7,24 times
67,388

642,211
2022 = = 6,11 times
105.068

631,265
2023 = = 6,92 times
91 ,18

Ending inventory
● Days' Sales in Inventory = * 365
Cost of good sold

95,661
2021 = * 365 = 71,52 days
488,177

114,475
2022 = * 365 = 65,06 days
642,211

67,882
2023 = * 365 = 32,25 days
631,265
 1. 4 Leverage

a. Debt to Equity
Total liabilities
Debt to Equity =
Total equity
383,613
2021 = = 0,31
1,245,299
434,054
2022 = = 0,55
791,143
67,882
2023 = = 2,33
335,781
b. Times Interested Earned (Interest Coverage Ratio)
Ebit
Times Interested Earned =
Interest expense
215,048+15,740
2021 = = 14,66
15,740
397,394+16,665
2022 = = 24,85
16,665
408,165+69,029
2023 = = 6,91
69,029

Appendices 3: Audited Financial Statements/ 10-K Filings used to back up ratios of

General Mills company.
Appendices 4: Audited Financial Statements/ 10-K Filings used to back up ratios of
Oatly Group AB company.