General Mills Inc (GIS)

Receivables 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
Revenue (ttm)	US$ in thousands	19,623,400	19,921,400	19,985,200	20,092,800	20,365,900	20,227,000	19,807,000	19,609,100	18,992,300	18,622,800	18,415,500	18,103,000	17,911,900	18,427,300	18,083,800	17,766,400	17,397,300	16,536,800	16,498,400	16,475,500
Receivables	US$ in thousands	1,696,200	1,771,100	1,758,800	1,791,100	1,683,200	1,770,200	1,834,000	1,730,400	1,692,100	1,750,400	1,766,100	1,691,700	1,638,500	1,776,200	1,784,300	1,633,000	1,615,100	1,731,100	1,772,700	1,710,500
Receivables turnover		11.57	11.25	11.36	11.22	12.10	11.43	10.80	11.33	11.22	10.64	10.43	10.70	10.93	10.37	10.13	10.88	10.77	9.55	9.31	9.63

May 26, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,623,400K ÷ $1,696,200K
= 11.57

The receivables turnover ratio for General Mills Inc has shown relatively stable performance over the past few quarters, ranging between 9.31 and 12.10. This ratio measures how efficiently the company is collecting payments from its customers. A higher turnover ratio indicates that General Mills is collecting its accounts receivable more frequently within the period, which is a positive sign of liquidity and efficient credit management.

The average receivables turnover ratio for the period under review is approximately 10.84. This indicates that, on average, General Mills collects its accounts receivable around 10.84 times a year. The consistent turnover ratio suggests that the company has effective credit policies in place, allowing for timely recovery of outstanding debts.

Overall, the stable and relatively high receivables turnover ratio for General Mills Inc signifies a healthy financial position and efficient management of its accounts receivable. It indicates that the company is successful in converting credit sales into cash, which is essential for maintaining liquidity and sustainable operations.