General Mills Inc (GIS)
Inventory turnover
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | -4,894,300 | -4,588,400 | -4,267,900 | -4,259,100 | -4,084,300 |
| Inventory | US$ in thousands | 1,898,200 | 2,172,000 | 1,867,300 | 1,820,500 | 1,426,300 |
| Inventory turnover | -2.58 | -2.11 | -2.29 | -2.34 | -2.86 |
May 26, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $-4,894,300K ÷ $1,898,200K
= -2.58
General Mills Inc's inventory turnover ratio has been fluctuating over the past five years. The ratio indicates how efficiently the company manages its inventory by calculating how many times inventory is sold and replaced within a given period.
The trend shows a decreasing pattern from 2020 to 2023, with the ratio ranging from -2.86 to -2.11. This suggests that inventory is turning over at a slower rate in those years. However, in 2024, there was a further decrease to -2.58, indicating a slight decline in the efficiency of inventory management.
A negative inventory turnover ratio can be an indication of excess inventory levels or potential issues with sales. It implies that inventory is not being sold quickly enough or is being overstocked.
Overall, General Mills Inc may need to improve its inventory management strategies to optimize turnover and ensure better utilization of its inventory resources.
Peer comparison
May 26, 2024