General Mills Inc (GIS)

Short-term

Turnover ratios

General Mills Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, and payables.

1. Inventory Turnover: General Mills has been maintaining a relatively stable inventory turnover ratio over the periods analyzed, ranging between 7.25 and 9.65. This indicates that the company is effectively managing its inventory levels, with a higher turnover generally being favorable as it implies faster sales of inventory.

2. Receivables Turnover: The company's receivables turnover ratio has also remained relatively consistent, fluctuating between 9.31 and 12.10. This suggests that General Mills has been efficient in collecting receivables from its customers, with a higher turnover ratio indicating quicker collection of cash from credit sales.

3. Payables Turnover: General Mills has shown stability in its payables turnover ratio, with values ranging from 3.75 to 4.84 over the periods analyzed. A higher payables turnover ratio indicates a faster rate at which the company is paying its suppliers, which may have implications for cash flow management and supplier relationships.

4. Working Capital Turnover: The data provided does not include information on the working capital turnover for General Mills, which could have provided additional insights into how efficiently the company is utilizing its working capital to generate sales.

In summary, General Mills Inc has demonstrated consistency in managing its inventory, receivables, and payables turnover ratios, which suggests effective operational management and financial performance.

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Average number of days

General Mills Inc's activity ratios reflect the efficiency of the company in managing its inventory, collecting receivables, and paying its liabilities.

- Days of Inventory on Hand (DOH) indicates that, on average, General Mills holds inventory for around 44 to 50 days. There is some fluctuation in this ratio over time, but generally, the company appears to manage its inventory levels efficiently.

- Days of Sales Outstanding (DSO) shows the average number of days it takes for General Mills to collect its receivables, ranging from 30 to 36 days. The company has been consistent in collecting receivables in a timely manner, with slight fluctuations observed.

- Number of Days of Payables reveals that General Mills takes around 83 to 97 days to pay its payables. There seems to be some variability in the payment period over time, but overall, the company appears to have a balanced approach in managing its payables.

In conclusion, General Mills maintains a reasonable balance in managing its inventory, receivables, and payables, which indicates efficient activity management in its operations.

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See also:

General Mills Inc Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

General Mills Inc's fixed asset turnover ratio has been relatively stable over the past two years, ranging from 4.49 to 6.03. This indicates that, on average, the company generates $5.47 to $6.03 in sales for every $1 invested in fixed assets. The consistent performance suggests that General Mills is effectively utilizing its fixed assets to generate revenue.

In contrast, the total asset turnover ratio has fluctuated slightly over the same period, with values ranging from 0.54 to 0.65. This shows that General Mills is generating sales of $0.54 to $0.65 for every $1 in total assets owned by the company. The fluctuations in this ratio may indicate variations in the efficiency of the company in generating sales from all its assets.

Overall, General Mills appears to be efficiently utilizing both its fixed assets and total assets to generate revenue, as evidenced by the relatively stable fixed asset turnover and the slight fluctuations in total asset turnover.

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See also:

General Mills Inc Long-term (Investment) Activity Ratios (Quarterly Data)