General Mills Inc (GIS)

Payables 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
Payables	US$ in thousands	3,987,800	3,613,500	3,824,400	3,705,800	4,194,200	3,868,200	4,022,600	3,786,300	3,982,300	3,474,600	3,450,000	3,288,000	3,653,500	3,391,600	3,398,600	3,184,400	3,247,700	2,931,500	3,063,000	2,786,700
Payables turnover		3.91	4.38	4.20	4.36	3.87	4.15	3.86	4.05	3.75	4.25	4.22	4.30	3.82	4.21	4.15	4.37	4.24	4.51	4.31	4.84

May 26, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,583,400K ÷ $3,987,800K
= 3.91

The payables turnover ratio for General Mills Inc has fluctuated over the past few quarters, ranging between 3.75 and 4.84. This ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times the company pays off its suppliers during a specific period.

A higher payables turnover ratio signifies that General Mills is paying its suppliers more frequently, which could indicate good liquidity management or strong vendor relationships. Conversely, a lower ratio may suggest that the company is taking longer to pay its suppliers, possibly due to cash flow constraints or negotiations with vendors.

Overall, General Mills' payables turnover ratio has been relatively stable around the 4 times mark, indicating consistent management of its payables. It is important for the company to assess the reasons behind any fluctuations in this ratio to ensure optimal cash flow management and maintain healthy supplier relationships.