General Mills Inc (GIS)

Fixed asset turnover

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Revenue	US$ in thousands	2,037,800	1,957,400	2,134,300	2,189,200	2,045,600
Property, plant and equipment	US$ in thousands	3,863,900	3,636,200	3,393,800	3,606,800	3,580,600
Fixed asset turnover		0.53	0.54	0.63	0.61	0.57

May 26, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,037,800K ÷ $3,863,900K
= 0.53

The fixed asset turnover ratio for General Mills Inc has exhibited some fluctuations over the past five years, ranging from 0.53 in 2024 to 0.63 in 2022. This ratio indicates the company's efficiency in generating revenue from its investment in fixed assets. A higher ratio is generally preferred as it suggests that the company is effectively utilizing its fixed assets to generate sales.

While the ratio has slightly decreased in recent years, it remains within a relatively close range. This may indicate that General Mills Inc has managed to maintain a consistent level of efficiency in utilizing its fixed assets to generate revenue over the years.

Further analysis and comparison with industry benchmarks could provide additional insights into General Mills Inc's performance in this aspect. It is essential for the company to continue monitoring and improving its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and overall operational efficiency.