General Mills Inc (GIS)
Cash conversion cycle
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 53.60 | — | 58.51 | — | 54.13 |
| Days of sales outstanding (DSO) | days | — | 303.81 | — | 313.87 | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 53.60 | 303.81 | 58.51 | 313.87 | 54.13 |
May 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 53.60 + — – —
= 53.60
General Mills Inc's cash conversion cycle fluctuates over the years based on the provided data. The company's cash conversion cycle was 54.13 days on May 31, 2022, increasing significantly to 313.87 days by May 28, 2023. However, it decreased to 58.51 days by May 31, 2023, before rising again to 303.81 days by May 26, 2024. The cycle then improved to 53.60 days by May 31, 2024.
This fluctuation indicates that General Mills Inc experienced challenges in managing its working capital efficiently during certain periods, leading to prolonged cash conversion cycles. A longer cash conversion cycle suggests that the company takes more time to convert its investments in raw materials and production into cash from sales, potentially impacting its liquidity and overall financial health. It is important for General Mills Inc to monitor and manage its cash conversion cycle effectively to optimize working capital management and ensure a healthy cash flow position.
Peer comparison
May 31, 2024