General Mills Inc (GIS)
Activity ratios
Short-term
Turnover ratios
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.81 | -2.58 | 6.24 | -2.11 | 6.74 |
| Receivables turnover | — | 1.20 | — | 1.16 | — |
| Payables turnover | — | -1.23 | — | -1.09 | — |
| Working capital turnover | — | — | — | — | — |
General Mills Inc's inventory turnover has fluctuated over the years, with ratios ranging from -2.58 to 6.81. A positive inventory turnover ratio indicates efficient management of inventory levels, with the company selling and restocking goods effectively. However, negative ratios like -2.11 and -2.58 can raise concerns about excess or obsolete inventory.
The receivables turnover ratio, which measures how quickly a company collects its accounts receivable, shows variability as well. Values of 1.16 and 1.20 suggest that General Mills Inc is collecting its receivables at a moderate pace, but the presence of "—", indicating missing data, makes it difficult to draw a complete conclusion.
Similarly, the payables turnover ratio has seen negative values of -1.09 and -1.23, indicating that General Mills Inc takes longer to pay its suppliers. This may suggest favorable credit terms with suppliers, but it's essential to monitor for potential liquidity issues.
The working capital turnover ratio, which reflects how effectively a company utilizes its working capital, remains unspecified due to missing values. Monitoring this ratio can provide insights into the efficiency of General Mills Inc's use of its current assets in generating sales.
In summary, while General Mills Inc's inventory turnover and payables turnover ratios show some fluctuation and potential areas for improvement, a more complete analysis is hindered by missing data in the receivables turnover and working capital turnover ratios. Further information would be needed to make a comprehensive assessment of the company's activity ratios.
Average number of days
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 53.60 | — | 58.51 | — | 54.13 |
| Days of sales outstanding (DSO) | days | — | 303.81 | — | 313.87 | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, we can analyze the activity ratios of General Mills Inc as follows:
1. Days of Inventory on Hand (DOH):
- As of May 31, 2022, General Mills had 54.13 days' worth of inventory on hand.
- The DOH data for May 28, 2023, and May 26, 2024, are not available.
- On May 31, 2023, the company's inventory on hand increased to 58.51 days.
- By May 31, 2024, General Mills managed to decrease its inventory days to 53.60 days.
2. Days of Sales Outstanding (DSO):
- The data indicates that on May 28, 2023, General Mills had 313.87 days of sales outstanding.
- The DSO data for May 31, 2022, May 31, 2023, and May 31, 2024, are not provided.
- On May 26, 2024, the number of days of sales outstanding decreased to 303.81 days.
3. Number of Days of Payables:
- There is no specific data available for the number of days of payables for any of the periods mentioned (May 31, 2022, May 28, 2023, May 31, 2023, May 26, 2024, and May 31, 2024).
- The lack of information on the days of payables makes it challenging to assess General Mills' payment policies and efficiency in managing its payables.
In conclusion, based on the data provided, General Mills Inc seems to have made progress in managing its inventory levels over the periods mentioned. However, the company's days of sales outstanding remain high, indicating potential challenges in collecting receivables efficiently. Due to the absence of data on the number of days of payables, a complete assessment of the company's working capital management is not possible.
See also:
Long-term
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 0.53 | 5.53 | 0.54 | 5.60 |
| Total asset turnover | 0.63 | 0.06 | 0.64 | 0.06 | 0.61 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. In the case of General Mills Inc, the fixed asset turnover ratio has shown significant fluctuations over the years.
In May 2022, the fixed asset turnover ratio was 5.60, indicating that General Mills generated $5.60 in sales for every $1 of fixed assets. However, this ratio dropped sharply to 0.54 in May 2023, suggesting a decrease in the efficiency of utilizing fixed assets. The ratio then improved to 5.53 in May 2023 but fell back to 0.53 in May 2024.
When analyzing the total asset turnover ratio, which indicates how efficiently a company is using its total assets to generate revenue, we see a similar trend. The ratio was 0.61 in May 2022, decreased to 0.06 in May 2023, improved to 0.64 in May 2023, dropped back to 0.06 in May 2024, and finally settled at 0.63 in May 2024.
Overall, these ratios suggest fluctuations in General Mills' ability to efficiently generate revenue from its asset base. It is important for the company to closely monitor and manage its asset utilization to improve its long-term financial performance.