ConAgra Foods Inc (CAG)

Short-term

Turnover ratios

ConAgra Foods Inc's inventory turnover has shown fluctuation over the years, ranging from 4.07 to 5.89. This indicates that the company has been able to manage its inventory effectively and convert it into sales efficiently. A higher inventory turnover ratio generally suggests better liquidity and operational performance.

The receivables turnover ratio for ConAgra shows that in some years, receivables turnover data is not available, but when it is, the ratios are relatively high, ranging from 12.44 to 13.33. This implies that the company is efficient in collecting revenue from its customers, which is a positive sign for cash flow management.

On the other hand, the payables turnover ratio for ConAgra also has missing data for certain years, but the available data shows ratios ranging from 7.87 to 8.22. This indicates that the company takes a moderate time to pay its suppliers, which could be a strategic approach to managing its working capital effectively.

Lastly, the working capital turnover ratio data is not provided for any of the years, which makes it challenging to assess how efficiently the company is utilizing its working capital to generate sales.

In conclusion, ConAgra Foods Inc seems to perform well in managing its inventory and receivables efficiently based on the available data, but further information is needed to evaluate its payables turnover and working capital turnover effectively.

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Average number of days

ConAgra Foods Inc's activity ratios provide insights into the efficiency of the company's management of its assets and liabilities.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand decreased from 82.54 days as of May 31, 2022, to 61.93 days as of May 26, 2024. This indicates that ConAgra Foods Inc is managing its inventory more efficiently as it takes fewer days to sell its inventory.
- The fluctuation in DOH over the years may suggest changes in the company's inventory management practices or market demand for its products.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding decreased from 29.34 days as of May 28, 2023, to 27.37 days as of May 26, 2024. This indicates that the company is collecting its accounts receivable more promptly.
- The absence of DSO data for some periods could indicate varying reporting practices or potentially improved credit control measures by the company.

3. Number of Days of Payables:
- The number of days of payables decreased from 46.38 days as of May 28, 2023, to 44.41 days as of May 26, 2024. A lower number of days of payables indicates that ConAgra Foods Inc is taking fewer days to pay its suppliers, which can improve relationships with suppliers.
- The lack of data for certain periods may be due to changes in payment terms with suppliers or other factors influencing the company's payables management.

Overall, the trends in ConAgra Foods Inc's activity ratios suggest improvements in managing its inventory, collecting receivables, and paying its suppliers efficiently over the analyzed periods.

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Long-term

ConAgra Foods Inc's fixed asset turnover ratio has shown a relatively stable trend over the years, ranging from 4.01 to 4.43. This indicates that the company is generating between $4.01 and $4.43 in sales for every dollar invested in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio suggests better efficiency in utilizing fixed assets to generate sales.

When looking at the total asset turnover ratio, we can see a consistent improvement from 0.51 in May 2022 to 0.58 in May 2024. This means that ConAgra Foods Inc has been able to generate more revenue for each dollar of total assets employed in the business. A higher total asset turnover ratio demonstrates effective asset utilization and productivity.

Overall, the company's long-term activity ratios suggest that ConAgra Foods Inc is efficiently utilizing its fixed assets and total assets to drive sales growth and optimize its operational performance over the years.