ConAgra Foods Inc (CAG)

Short-term

Turnover ratios

ConAgra Foods Inc's activity ratios provide insight into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory turnover: ConAgra Foods has generally maintained a consistent level of inventory turnover, ranging from 4.83 to 6.47 times over the past few quarters. This indicates the company's ability to sell its inventory and replace it a certain number of times within a given period.

2. Receivables turnover: The company's receivables turnover ratio has ranged from 11.14 to 14.51 times, showcasing the efficiency of ConAgra Foods in collecting payments from its customers. A higher turnover ratio implies that the company is able to collect outstanding receivables more frequently.

3. Payables turnover: ConAgra Foods' payables turnover ratio ranges from 5.06 to 8.20 times, indicating how quickly the company pays off its suppliers. A higher ratio suggests that ConAgra Foods is efficiently managing its payables and, potentially, taking advantage of favorable credit terms.

4. Working capital turnover: The lack of data for working capital turnover in the provided table limits the assessment of how effectively ConAgra Foods is managing its working capital to generate sales. However, it is an important measure of the company's ability to efficiently utilize its current assets and liabilities.

Overall, the inventory turnover, receivables turnover, and payables turnover ratios suggest that ConAgra Foods Inc has maintained efficient operating activities regarding inventory management, collection of receivables, and payment to suppliers. Monitoring these activity ratios over time can help assess the company's ongoing operational efficiency and financial health.

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Average number of days

Days of inventory on hand (DOH) for ConAgra Foods Inc have been fluctuating over the past few quarters, ranging from 49.65 days to 78.73 days. This indicates variability in the company's ability to manage its inventory levels efficiently. A lower DOH implies faster inventory turnover, while a higher DOH may suggest potential issues such as excess inventory or slow sales.

Days of sales outstanding (DSO) have also shown variability, ranging from 25.15 days to 34.08 days. This metric reflects how quickly the company collects its accounts receivable. A lower DSO is generally favorable as it indicates efficient collections, while a higher DSO may signal potential issues with credit policies or customer payment delays.

The number of days of payables for ConAgra Foods Inc has fluctuated between 44.54 days and 66.49 days. This metric indicates the average number of days it takes the company to pay its suppliers. A longer period may suggest favorable terms with suppliers, but it could also indicate strained liquidity or potential delays in payments.

Overall, these activity ratios provide insight into ConAgra Foods Inc's operational efficiency and management of working capital. Monitoring these ratios over time can help identify trends and areas for improvement in the company's supply chain and receivables management processes.

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Long-term

ConAgra Foods Inc's long-term activity ratios indicate its efficiency in utilizing its assets for generating sales revenue. The fixed asset turnover ratio has been relatively stable over time, ranging between 4.01 and 4.52. This suggests that the company is effectively using its fixed assets to generate sales, with a consistent level of productivity in its fixed asset investments.

On the other hand, the total asset turnover ratio has shown some variability, fluctuating between 0.44 and 0.56. This ratio indicates the company's ability to generate sales in relation to its total assets. While the total asset turnover ratio fluctuates, the overall trend shows a slight improvement over the period analyzed, with a general increase from 0.44 to 0.56.

Overall, ConAgra Foods Inc's long-term activity ratios demonstrate a strong level of efficiency in utilizing both fixed and total assets to generate sales revenue. The company's ability to maintain a relatively high fixed asset turnover ratio and show improvement in total asset turnover ratio reflects its effective management of assets to drive sales growth.