General Mills Inc (GIS)

Fixed asset turnover

		May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023	May 31, 2022
Revenue	US$ in thousands	19,857,200	2,037,800	20,094,200	1,957,400	18,992,800
Property, plant and equipment	US$ in thousands	—	3,863,900	3,636,200	3,636,200	3,393,800
Fixed asset turnover		—	0.53	5.53	0.54	5.60

May 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,857,200K ÷ $—K
= —

The fixed asset turnover ratio is a measure of how efficiently a company is using its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.

Based on the data provided for General Mills Inc, the fixed asset turnover ratio has shown significant fluctuations over the years. In May 2022, the ratio was very high at 5.60, suggesting that General Mills was effectively generating revenue from its fixed assets. However, by May 2023, the ratio dropped dramatically to 0.54, indicating a significant decrease in the efficiency of utilizing fixed assets to generate revenue.

In the following year, May 2023, the ratio rebounded to 5.53, showing improved efficiency in leveraging fixed assets. Unfortunately, by May 2024, the ratio decreased once again to 0.53, signaling a decline in the effectiveness of utilizing fixed assets.

The absence of data for May 31, 2024, prevents us from drawing a direct comparison with previous years.

Overall, the fluctuating trend in General Mills Inc's fixed asset turnover ratio suggests varying levels of efficiency in utilizing fixed assets to generate revenue. It is important for the company to closely monitor and improve its asset utilization to sustain and enhance financial performance in the long term.