ConAgra Foods Inc (CAG)

Short-term

Turnover ratios

Inventory turnover measures how efficiently a company manages its inventory by evaluating how many times inventory is sold and restocked during a particular period. ConAgra Foods Inc's inventory turnover has been fluctuating over the past five years, ranging from 5.32 to 7.51, with the latest figure being 5.89 as of May 26, 2024.

Receivables turnover ratio indicates how quickly a company collects its accounts receivable. ConAgra Foods Inc has consistently shown a strong performance in this aspect, with the receivables turnover ratio improving from 12.26 in May 31, 2020, to 13.33 in May 26, 2024.

Payables turnover ratio gauges how efficiently a company pays its suppliers. ConAgra Foods Inc's payables turnover ratio has been stable, hovering between 5.61 and 8.22 over the past five years. The company managed to increase this ratio to 8.22 as of May 26, 2024.

Working capital turnover ratio measures a company's ability to generate sales from its working capital. Unfortunately, there is missing data for this ratio, so we are unable to provide an analysis for ConAgra Foods Inc's performance in this specific metric.

Overall, based on the activity ratios, ConAgra Foods Inc appears to manage its inventory efficiently and collect its accounts receivable promptly. Additionally, the company has improved its payables turnover ratio, indicating effective management of payables.

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Average number of days

ConAgra Foods Inc's activity ratios provide insights into the efficiency of its inventory management, accounts receivable collection, and payment to suppliers.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows that ConAgra has been able to reduce the number of days it holds inventory from 68.58 days in 2022 to 61.93 days in 2024. This indicates better inventory management and faster turnover of goods.
- However, the DOH increased in 2023 compared to the previous year, which could suggest potential issues with inventory control during that period.

2. Days of Sales Outstanding (DSO):
- ConAgra has been able to improve its DSO from 29.78 days in 2020 to 27.37 days in 2024. This indicates faster collection of accounts receivable, which is a positive sign for the company's cash flow.
- The decreasing trend in DSO over the years reflects efficient credit management practices by ConAgra.

3. Number of Days of Payables:
- The trend in the number of days of payables shows fluctuations over the years, with the highest being 65.02 days in 2022 and the lowest at 44.41 days in 2024.
- A lower number of days of payables suggests that ConAgra is paying its suppliers more quickly, which may strain cash flow but can also reflect good relationships with suppliers.

Overall, ConAgra Foods Inc has shown improvements in its inventory turnover, accounts receivable collection, and payment practices over the years, indicating effective management of its operating cycle.

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Long-term

ConAgra Foods Inc's long-term activity ratios suggest efficiency in utilizing its fixed assets and total assets to generate sales over the years. The fixed asset turnover ratio has remained relatively stable, ranging between 4.01 and 4.46. This indicates that the company generates around $4 in revenue for every $1 invested in fixed assets. The consistency in this ratio shows that ConAgra has been effective in maximizing the productivity of its fixed assets.

On the other hand, the total asset turnover ratio has shown an increasing trend over the years, from 0.47 in 2020 to 0.56 in 2024. This indicates that ConAgra has been improving its efficiency in generating sales relative to its total assets. The increase in this ratio reflects the company's ability to generate sales from its total asset base and implies effective asset utilization.

Overall, ConAgra Foods Inc's long-term activity ratios suggest that the company has been effectively managing its assets to generate revenue, with both fixed asset turnover and total asset turnover ratios demonstrating efficiency in asset utilization and sales generation.