General Mills Inc (GIS)

Receivables turnover

		May 31, 2025	May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023
Revenue	US$ in thousands	19,486,600	19,857,200	2,037,800	20,094,200	1,957,400
Receivables	US$ in thousands	1,795,900	1,938,600	1,696,200	2,014,000	1,683,200
Receivables turnover		10.85	10.24	1.20	9.98	1.16

May 31, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $19,486,600K ÷ $1,795,900K
= 10.85

The receivables turnover ratios for General Mills Inc. over the periods provided demonstrate notable fluctuations that warrant detailed analysis. As of May 28, 2023, the receivables turnover was 1.16, indicating relatively slow collection of accounts receivable during that period. This low ratio persisted until the end of May 31, 2023, where it sharply increased to 9.98—a significant rise of approximately 761%. This suggests a rapid improvement in the efficiency of collecting receivables within that short span.

Moving into the subsequent fiscal year, the receivables turnover slightly increased to 1.20 by May 26, 2024, nearly matching the earlier low point, which may indicate continued challenges or variability in collection practices during that period. However, by the end of May 31, 2024, the ratio had substantially improved to 10.24, closely aligning with the previous high and indicating a strong receivable collection performance at that time.

Looking further ahead, by May 31, 2025, the ratio further increased to 10.85, reflecting a consistent trend of improved efficiency in receivables collection. The upward trajectory from around 1.16–1.20 in 2023 to over 10 in 2024 and 2025 indicates a significant enhancement in the company's ability to convert receivables into cash more rapidly and efficiently over the analyzed periods.

Overall, the data portray a transition from a period of slow receivables turnover in May 2023 to markedly higher and more efficient collection rates in subsequent periods, which could be indicative of improved credit policies, collection efforts, or changes in customer payment behavior. Such improvements generally have favorable implications for the company's cash flow and liquidity position.