General Mills Inc (GIS)

Days of sales outstanding (DSO)

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Receivables turnover		1.20	1.16	1.26	1.34	1.27
DSO	days	303.81	313.87	289.38	273.18	288.19

May 26, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.20
= 303.81

General Mills Inc's Days Sales Outstanding (DSO) has fluctuated over the past five years. In May 2024, the DSO was 303.81 days, which indicates that, on average, it took the company around 303.81 days to collect its accounts receivable. This was a slight improvement from the previous year, where the DSO was 313.87 days.

Comparing to two years ago, the DSO in May 2024 was higher at 303.81 days compared to 289.38 days, suggesting a lengthening of the company's accounts receivable collection period. However, when looking back three years, there has been an improvement in collection efficiency as the DSO decreased from 273.18 days in May 2021 to 303.81 days in May 2024.

It is worth noting that the DSO was relatively high in the base year of May 2020 at 288.19 days, and it has maintained a higher level since then. This trend indicates that General Mills Inc may be facing challenges in managing its accounts receivable and cash flow, potentially impacting its liquidity and working capital management.

Overall, General Mills Inc's DSO trend suggests fluctuations in the efficiency of its accounts receivable management over the past five years. Further analysis of the company's credit policies, collection processes, and customer payment behaviors may provide insights into improving its cash flow and working capital efficiency.