General Mills Inc (GIS)
Cash conversion cycle
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.08 | 56.82 | 57.15 | 50.35 | 49.11 | 43.70 | 44.53 | 53.52 | 53.78 | 58.95 | 57.59 | 54.46 | 53.67 | 48.24 | 48.83 | 50.85 | 51.80 | 55.38 | 55.93 | 50.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 30.87 | — | 32.25 | — | 32.51 | — | 32.56 | — | 29.94 | — | 32.13 | — | 33.81 | — | 32.41 | — |
| Number of days of payables | days | — | — | — | — | 103.16 | — | 88.02 | — | 94.95 | — | 95.75 | — | 103.64 | — | 90.67 | — | 98.22 | — | 101.33 | — |
| Cash conversion cycle | days | 52.08 | 56.82 | 57.15 | 50.35 | -23.18 | 43.70 | -11.24 | 53.52 | -8.66 | 58.95 | -5.60 | 54.46 | -20.03 | 48.24 | -9.70 | 50.85 | -12.62 | 55.38 | -12.99 | 50.63 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.08 + — – —
= 52.08
The cash conversion cycle for General Mills Inc fluctuated over the period under consideration. Initially, the company had a positive cash conversion cycle, indicating that it took a considerable amount of time to convert its investments in inventory back into cash. This could suggest inefficiencies in inventory management or slow collection of receivables relative to paying suppliers. However, as time progressed, the cash conversion cycle turned negative, implying that the company was able to convert its investments into cash more quickly.
The negative cash conversion cycle could be a positive sign, indicating that General Mills Inc was able to efficiently manage its working capital and generate cash quickly from its operating activities. A negative cash conversion cycle may be achieved by efficiently turning inventory into receivables and then collecting those receivables from customers promptly.
Overall, General Mills Inc's ability to effectively manage its cash conversion cycle is crucial for its liquidity and operational efficiency. A shorter cash conversion cycle generally indicates better cash flow management and working capital practices, which can contribute to overall financial health and stability. It is important for the company to continuously monitor and optimize its cash conversion cycle to ensure efficient use of resources and sustainable growth.
Peer comparison
Feb 28, 2025