General Mills Inc (GIS)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	15,583,400	15,841,500	16,059,400	16,151,100	16,234,600	16,054,000	15,531,600	15,328,600	14,953,400	14,770,900	14,565,500	14,139,200	13,950,200	14,280,400	14,119,600	13,929,100	13,762,000	13,208,300	13,199,300	13,484,100
Inventory	US$ in thousands	1,898,200	1,828,000	2,166,000	2,228,800	2,172,000	2,083,300	2,121,300	2,089,900	1,867,300	1,710,000	1,797,300	1,935,200	1,820,500	1,758,800	1,712,500	1,605,100	1,426,300	1,542,100	1,719,500	1,700,100
Inventory turnover		8.21	8.67	7.41	7.25	7.47	7.71	7.32	7.33	8.01	8.64	8.10	7.31	7.66	8.12	8.25	8.68	9.65	8.57	7.68	7.93

May 26, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,583,400K ÷ $1,898,200K
= 8.21

The inventory turnover ratio of General Mills Inc has shown consistent and relatively high levels over the past few years, indicating the company's efficiency in managing its inventory. The average inventory turnover ratio over the period is around 8.11, suggesting that General Mills is able to sell and replace its inventory approximately 8 times over the course of a year.

The trend of the inventory turnover ratio has remained stable, with minor fluctuations around the average. This indicates that General Mills has been able to maintain a steady control over its inventory levels and optimize its production and sales processes efficiently.

High inventory turnover ratios typically indicate that a company is effectively managing its inventory levels, avoiding excessive holding costs and stockouts. In the case of General Mills, the consistently high inventory turnover ratios suggest that the company is effectively managing its inventory to meet customer demand and minimize carrying costs.

Overall, based on the trend and average inventory turnover ratio, General Mills Inc appears to have a robust inventory management system in place, which is positively impacting the company's operational efficiency and financial performance.