ConAgra Foods Inc (CAG)

Short-term

Turnover ratios

The inventory turnover ratio for ConAgra Foods Inc has shown a fluctuating trend over the past few periods, ranging from a low of 4.17 to a high of 5.55. This indicates the number of times the company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio generally suggests efficient management of inventory levels.

The receivables turnover ratio has also varied, with the company not reporting receivables turnover for some periods. When reported, the receivables turnover ratio ranged from approximately 12 to 14.54. This ratio reflects how efficiently ConAgra is collecting on its credit sales, with higher turnover ratios indicating a shorter time frame for collecting outstanding payments.

Similarly, the payables turnover ratio for ConAgra has shown some fluctuations, varying between 5.63 and 7.74. This ratio represents how quickly the company is paying its suppliers. A higher payables turnover ratio could imply that ConAgra is able to effectively manage its payables and negotiate favorable credit terms with suppliers.

The working capital turnover ratio for ConAgra was not reported for the periods reviewed. This ratio typically measures how effectively a company is utilizing its working capital to generate revenue. The absence of this ratio data may indicate that the company is not focusing on this particular aspect of its operations or does not see it as a relevant metric for its business.

Overall, analyzing these activity ratios provides insights into ConAgra Foods Inc's operational efficiency in managing its inventory, receivables, and payables. A detailed assessment of these ratios over time can help identify trends and potential areas for improvement in the company's working capital management and operational effectiveness.

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Average number of days

The analysis of ConAgra Foods Inc's activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH): The DOH ratio measures how many days it takes for a company to sell its entire inventory. The trend for ConAgra shows fluctuations in inventory management efficiency over time. The DOH ranged from a low of 65.77 days in May 2024 to a high of 87.62 days in November 2023. Overall, there seems to be some variability in managing inventory levels, impacting working capital requirements and potential storage costs.

2. Days of Sales Outstanding (DSO): DSO reflects how long on average it takes for a company to collect its accounts receivable. The data provided shows inconsistency in reporting DSO figures, with several periods marked as "— days." When figures are available, DSO ranges from 25.10 days in August 2022 to 30.23 days in August 2023. This variability may indicate changing credit policies or seasonal fluctuations in sales collections efficiency.

3. Number of Days of Payables: This ratio evaluates the average number of days a company takes to pay its suppliers. Similar to DSO, the data displays several periods marked as "— days" for ConAgra. When figures are present, the number of days of payables varies from low of 47.16 days in May 2024 to a high of 64.82 days in August 2022. The fluctuations in payable days may suggest changes in payment terms with suppliers or alterations in working capital management strategies.

In summary, ConAgra Foods Inc's activity ratios exhibit fluctuations in inventory management, accounts receivable collection, and accounts payable payment periods over the reported periods. This variability underscores the importance of effectively managing working capital and optimizing cash flow to enhance operational efficiency and financial performance.

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Long-term

The fixed asset turnover ratio measures the efficiency of a company in generating sales from its investments in fixed assets. For ConAgra Foods Inc, the fixed asset turnover ratio has shown a generally increasing trend over the analyzed period. Starting at 4.23 in May 2022, it peaked at 4.66 in February 2023 before fluctuating around the 4.00 mark in the subsequent periods. This indicates that the company has been effectively utilizing its fixed assets to generate revenue, with a higher ratio suggesting better asset utilization efficiency.

On the other hand, the total asset turnover ratio reflects how well a company is utilizing all its assets to generate sales. ConAgra Foods Inc's total asset turnover ratio has displayed a more stable trajectory compared to the fixed asset turnover ratio. It ranged between 0.51 and 0.57, with a slight increasing trend over time. This suggests that the company has been effectively managing its total assets to generate sales, with a higher ratio indicating that ConAgra is efficiently converting its assets into revenue.

Overall, the trend in both fixed asset turnover and total asset turnover ratios for ConAgra Foods Inc indicates that the company has been efficiently managing its assets to generate revenue, showcasing a balanced approach in utilizing both fixed and total assets effectively over the analyzed period.