ConAgra Foods Inc (CAG)

Short-term

Turnover ratios

The activity ratios for ConAgra Foods Inc. over the specified periods indicate several trends in operational efficiency.

Inventory Turnover: The ratio exhibits fluctuations over the analyzed periods. From May 28, 2023, to May 31, 2023, it decreased from 5.43 to 4.07, suggesting a temporary slowdown in inventory management. However, by May 26, 2024, it increased to 5.89, indicating enhanced inventory turnover, and maintained a similar level at May 31, 2024, with a slight decline to 4.19. The ratio further stabilizes at 4.20 by May 31, 2025. Overall, the trend reflects periods of improvement and stabilization in managing inventory cycles.

Receivables Turnover: There is a consistent upward trend observed in receivables turnover ratios. Starting from 12.44 on May 28, 2023, it increased slightly to 12.89 by May 31, 2023. This upward momentum continued into 2024, reaching 13.33 on May 26, 2024, and further improving to 13.82 by May 31, 2024. By May 31, 2025, the ratio stands at 15.08, indicating improved collection efficiency and faster conversion of receivables into cash over time.

Payables Turnover: The payables turnover ratios display variability across the periods. It decreased from 7.87 on May 28, 2023, to 5.91 on May 31, 2023, suggesting a delay or extension in settling payables during that interval. Conversely, it increased to 8.22 by May 26, 2024, before declining again to 5.84 on May 31, 2024, and further to 5.41 by May 31, 2025. These fluctuations may reflect changes in the company's credit policies or supplier payment terms but generally point toward a less consistent pattern in managing payables.

Working Capital Turnover: Data for this ratio is not available for the periods provided, and thus, no analysis can be made regarding the efficiency of working capital utilization over time.

Overall, the company demonstrates an improving trend in receivables turnover, indicating more efficient collection practices. Inventory turnover shows fluctuation but generally remains within a moderate range, reflecting manageable inventory levels relative to sales. Payables turnover ratios suggest variability in payment practices, which could impact liquidity and supplier relationships.

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Average number of days

The activity ratios for ConAgra Foods Inc, as reflected in the provided data, offer insights into the company's operational efficiency over the specified periods.

Days of Inventory on Hand (DOH):
The DOH metrics indicate a reduction in inventory holding periods over time. Specifically, the DOH decreased from approximately 89.60 days on May 31, 2023, to around 61.93 days on May 26, 2024, and further stabilized near 86.84 days on May 31, 2025. This downward trend suggests an improvement in inventory management, with the company becoming more efficient at turning over inventory and reducing idle stock, which can positively impact working capital and storage costs.

Days of Sales Outstanding (DSO):
The DSO figures demonstrate a consistent decline across the periods, moving from around 29.34 days on May 28, 2023, to approximately 24.20 days on May 31, 2025. This reduction reflects enhanced receivables management and potentially faster collection of receivables, improving cash flow and liquidity. Shorter DSO periods are generally viewed favorably, indicating that the company is converting its sales into cash more rapidly.

Days of Payables:
The days of payables have shown an increasing trend, rising from approximately 46.38 days on May 28, 2023, to 67.41 days by May 31, 2025. An increase in days payable suggests that the company is extending its payment periods to suppliers, which can improve short-term liquidity by retaining cash longer. However, excessively long payables could strain supplier relationships or impact credit terms. The steady increase indicates a strategic approach in managing payment obligations to optimize working capital.

Overall Implications:
The combined analysis of these activity ratios indicates a pattern of operational efficiency enhancements. The decreasing inventory and receivables periods suggest improved inventory turnover and receivables collection, contributing to better cash flow management. Concurrently, the elongation of payables periods demonstrates an effort to optimize working capital, possibly reflecting effective liquidity management strategies. These trends collectively point toward a focused effort to streamline operational processes and manage short-term assets and liabilities effectively.

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Long-term

The long-term activity ratios for ConAgra Foods Inc., as reflected in the provided data, reveal insights into the efficiency with which the company utilizes its fixed assets and total assets over the specified periods.

The Fixed Asset Turnover ratio shows a downward trend from the period ending May 31, 2023, with a value of 4.43, to the period ending May 26, 2024, where it decreased to 4.01. This decline indicates a reduction in the company's efficiency in generating sales from its fixed assets over the course of the year. The ratio on May 28, 2023, was slightly lower at 4.33, suggesting some fluctuation but overall a decreasing trend. The missing data for May 31, 2024, and May 31, 2025, precludes further analysis for those periods, but the existing trend suggests a possible easing in asset utilization efficiency.

The Total Asset Turnover ratio remained relatively stable between the periods ending May 28, 2023, and May 31, 2024, with values ranging narrowly from 0.54 to 0.58. It increased marginally from 0.54 to 0.56 in the period ending May 31, 2023, and maintained this level into the subsequent period. The ratio then slightly declined to 0.55 by May 31, 2025, indicating a relatively steady, albeit modest, efficiency in using total assets to generate sales over the longer term.

Overall, the analysis suggests that ConAgra Foods Inc. experienced some erosion in the efficiency of fixed asset utilization over the analyzed year, while the efficiency in using total assets remained largely stable with minor fluctuations. These ratios highlight the company's performance in maximizing the utility of its assets in generating revenue over the evaluated periods.