General Mills Inc (GIS)

Inventory turnover

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022
Cost of revenue (ttm)	US$ in thousands	14,195,200	12,697,000	12,642,200	12,725,000	13,735,600	14,083,500	15,242,700	14,985,100	14,772,900	14,701,200	13,800,100	14,127,000	14,557,100	14,770,900	15,763,700	15,572,500	15,225,900	14,831,600	13,658,200	13,522,300
Inventory	US$ in thousands	1,910,800	1,811,600	1,967,900	1,996,400	1,898,200	1,898,200	1,828,000	1,828,000	2,166,000	2,166,000	2,228,800	2,228,800	2,172,000	2,172,000	2,083,300	2,083,300	2,121,300	2,121,300	2,089,900	2,089,900
Inventory turnover		7.43	7.01	6.42	6.37	7.24	7.42	8.34	8.20	6.82	6.79	6.19	6.34	6.70	6.80	7.57	7.47	7.18	6.99	6.54	6.47

May 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,195,200K ÷ $1,910,800K
= 7.43

The analysis of General Mills Inc.'s inventory turnover over the observed period reveals fluctuations that reflect its inventory management efficiency. Initially, at the fiscal year ending August 28, 2022, the inventory turnover was 6.47, indicating the company effectively sold and replaced its inventory approximately 6.5 times during that period. This ratio increased steadily thereafter, reaching a peak of 7.57 by February 28, 2023, suggesting improvements in inventory management and faster inventory movement.

Following this peak, there was a decline in the ratio, with values such as 6.80 and 6.70 during the May and August 2023 periods, respectively, indicating a slight slowdown in inventory turnover. However, the ratio rebounded sharply in the subsequent period ending February 25, 2024, to 8.20, reflecting a significant increase in inventory liquidity. This upward trend continued through May and August 2024, with ratios of 7.42 and 6.37, before stabilizing around 6.40 to 7.43 for the rest of the periods.

Overall, the inventory turnover ratio exhibited a pattern of moderate fluctuations around an average range of approximately 6.2 to 8.3. The notable spike in early 2024 suggests periods of improved inventory efficiency, while the subsequent decline indicates a potential slowing or adjustment phase. The general trend implies that the company's inventory management has been dynamic, with periods of increased efficiency followed by adjustments, aligning with typical seasonal or strategic operational variations.