ConAgra Foods Inc (CAG)

Short-term

Turnover ratios

The activity ratios for ConAgra Foods Inc reveal insights into the company’s operational efficiency and management of working capital over the specified periods.

Inventory Turnover:
The inventory turnover ratio fluctuates over time, with the most recent data indicating an upward trend, reaching 5.55 in May 2024 and maintaining a high level at 5.42 in May 2025. Historically, the ratio exhibits variability, with values generally ranging between approximately 4.2 and 5.55. An increasing inventory turnover ratio suggests improvements in inventory management, reflecting faster inventory sales and reductions in holding periods, which can enhance cash flow and reduce storage costs. The recent upward trend indicates that the company is either accelerating sales of inventory or managing stock levels more efficiently.

Receivables Turnover:
Receivables turnover ratios show relatively stable performance with some fluctuations. The ratio oscillates roughly between 11.89 and 15.24, with the latest figures indicating a notable increase to 15.24 in February 2025 from previous levels near 12 to 13. Increases in receivables turnover imply that the company is collecting its accounts receivable more rapidly, which improves liquidity and reduces credit risk. The recent upward momentum suggests an enhancement in credit collections or tightened credit policies, leading to quicker conversion of receivables into cash.

Payables Turnover:
The payables turnover ratio displays some variability, with recent data indicating a decline from peaks over 7.74 in May 2024 to 5.41 in May 2025. A decreasing payables turnover ratio can suggest that the company is taking longer to settle its liabilities, which may improve short-term cash management but could also impact supplier relationships if extended excessively. The recent decline might reflect strategic creditor negotiations or a shift in payment policies aimed at optimizing working capital.

Working Capital Turnover:
Data for working capital turnover ratios are unavailable across all dates, hence an analysis of this ratio's trend or its implications cannot be performed.

Overall Assessment:
The trends observed in inventory and receivables turnovers indicate an ongoing effort toward operational efficiency, with shorter inventory holding periods and faster receivable collections enhancing liquidity. The decline in payables turnover suggests deliberate cash flow management adjustments, potentially extending payment periods to suppliers. These activity ratios collectively reflect a balanced approach to managing working capital components, supporting the company's ability to optimize cash flows while maintaining operational agility.

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Average number of days

Analyzing ConAgra Foods Inc.’s activity ratios over the provided period reveals several noteworthy trends in inventory management, accounts receivable collection efficiency, and accounts payable practices.

Days of Inventory on Hand (DOH):
The DOH figures demonstrate fluctuations in inventory levels, with a general upward trend from late 2022 through early 2024, peaking at approximately 87.62 days in November 2023. This suggests a period of increased inventory holdings, potentially indicative of stockpiling or slower inventory turnover. However, there is a marked reduction in inventory levels in May 2024, decreasing to approximately 65.77 days, representing a significant improvement in inventory management efficiency. Subsequent data points indicate a slight rise again, returning to around 86.84 days in May 2025, which may signal operational adjustments or inventory accumulation.

Days of Sales Outstanding (DSO):
The DSO figures are relatively stable throughout the analyzed period, averaging approximately 25 to 30 days. The data indicates a slight decrease toward the end of the period, with DSO declining to around 23.94 days in February 2025. This stability and slight improvement suggest consistent and efficient collection of receivables, maintaining a healthy cash conversion cycle.

Number of Days of Payables:
The days payable figures display variability, with the shortest periods recorded around May 2024 at approximately 47.16 days. Over time, the data shows a trend toward more extended payables, peaking at approximately 67.41 days in May 2025. This indicates a tendency to extend payment terms, which could improve short-term liquidity by delaying cash outflows but also might influence supplier relationships and creditworthiness.

Overall Interpretation:
The trend in inventory management shows periods of elevated inventory levels interspersed with improvements, notably in May 2024, which suggests management's efforts to optimize stock holdings. Receivables collection remains efficient, with low and stable DSO figures indicating effective credit policies and collection processes. The increasing trend in days payable implies a strategic approach to extending payment terms, possibly to manage cash flows better or capitalize on favorable credit terms. These activity ratio patterns collectively suggest that ConAgra Foods Inc. has been actively managing its operational cycle, balancing inventory, receivables, and payables to optimize liquidity and operational flexibility over the period analyzed.

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Long-term

The analysis of ConAgra Foods Inc.'s long-term activity ratios reveals several noteworthy trends. The fixed asset turnover ratio demonstrates a relatively stable pattern over the observed periods, fluctuating within a narrow range from approximately 3.96 to 4.66. Notably, it experienced a peak of 4.66 on February 28, 2023, before declining to 3.96 by August 31, 2023. Subsequent data indicates a modest recovery to around 4.21 in February 2024, with further fluctuations but overall stability in the high 3.9 to low 4.2 range. This pattern suggests that the company's efficiency in utilizing its fixed assets to generate sales has remained relatively consistent, with periodic slight increases and decreases that could relate to shifts in capital investment, asset utilization, or operational efficiency.

The total asset turnover ratio, which measures sales generated per dollar of total assets, exhibits a steady but slightly fluctuating trend, oscillating between 0.51 and 0.57 over the same period. The ratio maintained a level of approximately 0.52 to 0.55 for most of the observed timeframe, with minor increases reaching as high as 0.57 and a slight decline to 0.51 in May 2025. The consistency of this ratio indicates a stable utilization of the company's total assets to produce sales, with only modest variations that may reflect operational adjustments or changes in asset management effectiveness.

Overall, the ratios suggest that ConAgra Foods Inc. has maintained a consistent level of efficiency in deploying its fixed assets and total assets for revenue generation over the analyzed periods. The stability of these long-term activity ratios reflects prudent management of asset utilization, with no significant deterioration or improvement evident during this timeframe. Such stability can be indicative of mature operational processes and effective asset management strategies, contributing to predictable performance in asset efficiency metrics.