General Mills Inc (GIS)

Inventory turnover

		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	May 31, 2022
Cost of revenue (ttm)	US$ in thousands	12,697,000	12,642,200	12,750,600	13,761,200	14,109,100	15,268,300	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	14,948,000	13,774,600	13,638,700	13,462,900
Inventory	US$ in thousands	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	1,867,300
Inventory turnover		7.01	6.42	6.39	7.25	7.43	8.35	8.20	6.82	6.79	6.19	6.34	6.70	6.80	7.57	7.47	7.18	7.05	6.59	6.53	7.21

February 28, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,697,000K ÷ $1,811,600K
= 7.01

General Mills Inc's inventory turnover has shown some fluctuations over the period from May 31, 2022, to February 28, 2025. The inventory turnover ratio calculates how many times a company's inventory is sold and replaced over a specific time period. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally favorable.

Looking at the data provided, we observe that the inventory turnover ratio ranged from a low of 6.19 on August 31, 2023, to a high of 8.35 on February 29, 2024. Generally, a ratio above 6 is considered healthy for most industries, indicating that General Mills Inc is efficiently managing its inventory.

The inventory turnover ratio experienced some peaks and troughs throughout the period, showing a slight decline in mid-2023 before picking up again towards the end of the data range. This fluctuation may be influenced by various factors, such as seasonality, changes in demand, or adjustments in inventory management practices.

Overall, General Mills Inc's inventory turnover ratio demonstrates a relatively efficient inventory management strategy, with the company effectively balancing inventory levels to meet customer demand while minimizing excess stock. Monitoring this ratio over time can provide insights into the company's operational efficiency and financial performance.