General Mills Inc (GIS)

Short-term

Turnover ratios

General Mills Inc's inventory turnover ratio has shown fluctuations over the analyzed periods, ranging from a low of 6.19 to a high of 8.35. This indicates that the company is efficiently managing its inventory, with a higher turnover ratio implying that inventory is being sold and replenished at a faster rate.

The receivables turnover ratio, on the other hand, demonstrates the number of times a company collects its accounts receivable during a specific period. General Mills Inc's receivables turnover ratio ranged from 10.80 to 12.19, showing that the company is collecting its receivables efficiently.

The payables turnover ratio reflects how quickly a company pays its suppliers. General Mills Inc's payables turnover ratio ranged from 3.52 to 4.15, indicating that the company is managing its payables effectively.

The working capital turnover ratio provides insight into how efficiently a company is utilizing its working capital to generate revenue. In this case, the data provided shows that the working capital turnover ratio was unavailable for analysis.

Overall, based on the activity ratios provided, General Mills Inc seems to be managing its inventory, receivables, and payables efficiently, which is a positive sign for the company's operations and financial health.

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Average number of days

General Mills Inc's Days of Inventory on Hand (DOH) ranged between 44.53 days to 58.95 days over the last few quarters. The trend indicates that the company has been managing its inventory efficiently, with a decreasing trend in recent periods.

Days of Sales Outstanding (DSO) ranged between 29.94 days to 33.81 days, suggesting that General Mills has been collecting its receivables within a reasonable timeframe. The stable DSO indicates effective credit management and timely collection of sales.

The Number of Days of Payables ranged from 88.02 days to 103.64 days, showing that the company has been taking an average of around 90 to 100 days to pay its suppliers. This could indicate strong bargaining power with suppliers or favorable payment terms.

Overall, General Mills Inc's activity ratios reflect efficient management of inventory, receivables, and payables, supporting its operational performance and financial health.

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See also:

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

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Long-term

The fixed asset turnover ratio for General Mills Inc has shown a generally increasing trend over the analyzed period. It increased from 5.61 in May 2022 to 6.00 in February 2023, indicating that the company is generating more revenue from its fixed assets. However, the ratio has fluctuated slightly in subsequent periods, ranging between 5.19 and 6.12, but has generally remained above 5, suggesting efficient utilization of fixed assets to generate sales.

In contrast, the total asset turnover ratio has been relatively stable over the same period. It ranged from 0.60 to 0.66, with some fluctuations observed. This ratio indicates the company's ability to generate revenue in relation to its total assets. A consistent ratio around 0.60 to 0.66 suggests that General Mills Inc is effectively using its assets to generate sales, but there may be room for improvement in optimizing asset utilization.

Overall, considering both fixed asset turnover and total asset turnover ratios, General Mills Inc appears to be efficiently managing its assets to generate sales, with a focus on enhancing the utilization of fixed assets to drive revenue growth.

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See also:

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