General Mills Inc (GIS)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	44.46	42.12	49.23	50.37	48.83	47.37	49.85	49.76	45.58	42.26	45.04	49.96	47.63	44.95	44.27	42.06	37.83	42.61	47.55	46.02
Days of sales outstanding (DSO)	days	31.55	32.45	32.12	32.54	30.17	31.94	33.80	32.21	32.52	34.31	35.00	34.11	33.39	35.18	36.01	33.55	33.89	38.21	39.22	37.89
Number of days of payables	days	93.40	83.26	86.92	83.75	94.30	87.95	94.53	90.16	97.20	85.86	86.45	84.88	95.59	86.69	87.86	83.44	86.14	81.01	84.70	75.43
Cash conversion cycle	days	-17.39	-8.69	-5.57	-0.84	-15.30	-8.64	-10.88	-8.18	-19.11	-9.30	-6.41	-0.81	-14.57	-6.55	-7.57	-7.84	-14.42	-0.19	2.07	8.48

May 26, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.46 + 31.55 – 93.40
= -17.39

The cash conversion cycle of General Mills Inc has fluctuated over the past few years, with periods of both positive and negative cycles. The company's cash conversion cycle indicates how long it takes for General Mills to convert its investments in inventory and other resources into cash flows from sales.

Overall, General Mills Inc has shown a generally negative cash conversion cycle, which means the company has been able to efficiently convert its investments into cash. In recent periods, the company has seen improvements in its cash conversion cycle, with the cycle being significantly negative, indicating effective management of working capital.

The negative cash conversion cycle suggests that General Mills manages its inventory, accounts receivable, and accounts payable efficiently, resulting in faster cash cycles. However, the company should continue to monitor and optimize its working capital management to ensure liquidity and operational efficiency going forward.