General Mills Inc (GIS)

Cash conversion cycle

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	303.81	313.87	289.38	273.18	288.19
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	303.81	313.87	289.38	273.18	288.19

May 26, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 303.81 – —
= 303.81

The cash conversion cycle of General Mills Inc has shown some fluctuation over the past five years. In the most recent fiscal year ending May 26, 2024, the cash conversion cycle stood at 303.81 days, slightly improved compared to the previous year's figure of 313.87 days. This indicates that the company took slightly less time to convert its investments in inventory and other resources into cash during the most recent period.

Looking back, in May 2023, the cash conversion cycle was higher at 313.87 days, showing a slight deterioration from the previous year where it was recorded at 289.38 days. The trend reversed in the fiscal year ending May 29, 2022, with a decrease in the cycle to 289.38 days from 273.18 days in the prior year, signifying an improvement in efficiency in managing working capital.

Further back in May 2021 and May 2020, the cash conversion cycle stood at 273.18 days and 288.19 days, respectively. The cycle was more efficient in 2021 compared to 2020, reflecting that the company managed its cash, inventory, and receivables more effectively in converting them into cash during the business operations.

Overall, the trend in the cash conversion cycle of General Mills Inc over the past five years indicates some variability in its efficiency in managing cash flow, inventory, and operating cycle. It is important for the company to continue monitoring and optimizing its working capital management practices to ensure a healthy and sustainable cash conversion cycle in the future.