on, from $28.2 million in 1987. In 1989, it fell to near the 1987 level, at $27.5 million.
In absolute terms, net earnings increased annually during the 19871989 time period. As a proportion of sales, net earnings rose sharply during the period4.9 percent 1987, 5.7 percent 1988, and 7.4 percent 1989.
Order backlog is not a major consideration in either packaged food or restaurant operations. This factor, thus, is not addressed in this analysis. Overall, as indicated above, sales growth at General Mills has been sustained with respect to continuing operations.
When working capital is defined as the difference between total current assets and total current liabilities, General Mills was in a negative position in both 1988 ($200 million), and 1989 ($197 million). Cash flow at the company was negative each year in the 19871989 time period$10.6 million 1987, $165.1 million 1988, and $4.0 million 1989. The company's current ratio declined from 0.83 in 1988 to 0.81 in 1989. The quick ratio declined from 0.47 in 1988 to 0.45 in 1989.
Shareholders' equity increased from $648.5 million (24.3 percent of assets) in 1988 to $731.9 million (25.3 percent of assets) in 1989. The longterm debttoequity ratio increased dramatically in 1989 (0.73) over the 1988 level (0.56). Shortterm debt decreased in 1989 ($1.6 billion; 56.1 percent of assets) from 1988 levels ($1.7 billion; 62.2 percent of assets).
Earningspershare increased each year during the 19871989 time period$2.50 1987, $3.25 1988, and $5.06 1989. Dividends per share increased to $1.88 in 1989, from $1.60 in 1988. Equity share market prices ranged from $40.750 to $62.125 in 1988, and from $44.875 to $67.750 in 1989. Mean dividend yields were 3.1 percent 1988, and 3.3 percent 1989.
The purpose of this research is to present a financial statement analysis of Fluor Corporation. Included in this analysis are (1) a product, market, and industry overvie...