Outline - 9. Return on Equity: The first 3 points of this...

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9. Return on Equity: The first 3 points of this graph for General Mills are not represented for the sake of future analysis. Note that the values for Jun ’99, ’00 and ’01 are 325.5%, - 212.6% and 1278.9% respectively. These values are extreme outliers and dilute the graph’s future analysis if they are included. I’m not exactly sure what negative shareholder equity means but it does not sound good. What ever happened to General Mills in the end of 1999 and beginning of 2000 was probably not good. This coupled with a decrease in net sales explains the variable data not included on the graph for General Mills. Since June 2000, General Mills was able to gradually increase both sales and equity at a relatively constant rata, explaining the plateau in their ROE trend. Figure 9 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Year Kellog's General 8. Debt Ratio: Before General Mills growth it must have been financed entirely on debt.
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Outline - 9. Return on Equity: The first 3 points of this...

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