Compare the firm’s recent performance to the performance of its close competitor by means of ratio analysis.

Kellogg’s and General Mills are two of the largest cereal makers in the world. A comparison between these two companies can be conducted by means of ratio analysis to evaluate their strengths and weaknesses. In terms of profitability, Kellogg’s net profit margin is 8.02%, while General Mills’ is 10%. This suggests that General Mills has a higher ability to generate profits from each dollar earned relative to Kellogg’s. Likewise, General Mills also has a higher return on assets (7.34%), which indicates its utilization of assets leads to more profitable outcomes compared to Kellogg’s lower 5.56% return on assets.

In terms of solvency, both companies have a comparable debt-to-assets ratio (Kellogg: 42%; GM: 43%) indicating similar levels of indebtedness as well as liquidity with current ratios being 1.9 for both firms showing sufficient short-term ability cover any obligations due not far into future if need arises relatively soon should resources tighten up unexpectedly.

When assessing efficiency metrics it appears that General Mills manages use fewer resources attain same output given fact inventory turnover rate stands 4 times greater than counterpart at 8 versus respectively 2 suggesting better management stock control practices where turn around products swiftly keeping costs down while maintaining quality service simultaneously furthering impact bottom line over course time ultimately leading greater wealth accumulation all fronts.

Overall my general impression would lean towards seeing General Mill’s advantage many key areas such as profitability, solvency and efficiency — however this could change drastically based upon size diversification within portfolios or strategic access other markets due ultimate lack accessibility financial breakdown sales across varying available regions worldwide making comprehensive assessment contest bit challenging discern precise winner this particular match-up without taking closer look at other fundamental factors controls these respective businesses.