General Mills Inc (GIS)

Days of sales outstanding (DSO)

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Receivables turnover		11.57	11.25	11.36	11.22	12.10	11.43	10.80	11.33	11.22	10.64	10.43	10.70	10.93	10.37	10.13	10.88	10.77	9.55	9.31	9.63
DSO	days	31.55	32.45	32.12	32.54	30.17	31.94	33.80	32.21	32.52	34.31	35.00	34.11	33.39	35.18	36.01	33.55	33.89	38.21	39.22	37.89

May 26, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.57
= 31.55

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO value indicates a company is collecting payments more quickly, which is generally preferred as it implies better liquidity and working capital management.

Analyzing General Mills Inc's DSO figures over the past several quarters, we observe some fluctuations in the metric. The company's DSO has ranged from a low of 30.17 days to a high of 39.22 days over the period covered in the data.

Generally, a DSO that is consistently decreasing or remaining stable can indicate that the company is efficiently managing its accounts receivable and collecting payments promptly. On the other hand, an increasing DSO may suggest potential issues with customer creditworthiness or collection processes.

In the case of General Mills Inc, we see some fluctuations in the DSO values, which may indicate varying trends in the company's credit and collection policies or changes in customer payment behavior. It would be essential for the company to closely monitor these fluctuations and take appropriate measures to optimize its accounts receivable management.

Overall, while the DSO values for General Mills Inc have shown some variability, further analysis and comparison with industry benchmarks would provide deeper insights into the company's effectiveness in managing its accounts receivable and maintaining healthy cash flow.