General Mills Inc (GIS)

Cash conversion cycle

		May 31, 2025	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
Days of inventory on hand (DOH)	days	49.13	52.08	56.82	57.26	50.44	49.20	43.77	44.53	53.52	53.78	58.95	57.59	54.46	53.67	48.24	48.83	50.85	52.20	55.85	56.41
Days of sales outstanding (DSO)	days	33.64	33.28	33.12	34.52	36.05	30.87	31.94	32.25	32.34	32.51	32.92	32.56	36.16	29.94	31.49	32.13	33.26	33.81	32.12	32.41
Number of days of payables	days	103.10	106.14	117.47	109.67	105.97	103.35	86.53	88.02	94.49	94.95	98.02	95.75	105.16	103.64	89.57	90.67	96.43	98.99	101.18	102.20
Cash conversion cycle	days	-20.33	-20.79	-27.54	-17.89	-19.48	-23.28	-10.81	-11.24	-8.64	-8.66	-6.14	-5.60	-14.55	-20.03	-9.84	-9.70	-12.32	-12.98	-13.22	-13.38

May 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 49.13 + 33.64 – 103.10
= -20.33

The analysis of General Mills Inc.'s cash conversion cycle (CCC) over the observed periods indicates a consistently negative cycle, demonstrating the company's efficient management of working capital and liquidity. A negative CCC suggests that the company frequently receives cash from sales before it needs to settle its payables, implying effective short-term liquidity management and a strong cash position.

Between August 2022 and November 2022, the CCC remained relatively stable, fluctuating mildly around -13 days. This stability suggests steady operational efficiency in converting inventory into receivables and managing payables. Moving into early 2023, the CCC improved further, reaching approximately -9.7 to -9.8 days, which signals an increase in operational efficiency and shorter cash conversion periods.

In May 2023, an anomaly occurred with the CCC deepening to around -20.03 days, indicating that the company was collecting cash even faster relative to its payables or extending its payable period, thereby enhancing liquidity. However, the cycle slightly shortened again by August 2023 to about -5.6 days, suggesting a temporary shift possibly due to operational or strategic adjustments.

From late 2023 into mid-2024, the CCC resumed its negative trend, reaching as low as -27.54 days in November 2024. The expansion of this negative period signifies a progressively more efficient cycle, where cash is being generated more rapidly relative to the time taken to pay suppliers. This trend implies increasing operational efficiency or possible improvements in receivables collection, inventory management, or payables deferral strategies.

Throughout the most recent data points into 2025, the CCC has remained negative, albeit less extreme than the peak in late 2024, ranging between approximately -20 to -23 days. These figures continue to reflect an effective cash management strategy, supporting the company's liquidity and operational agility.

Overall, the data suggests that General Mills Inc. maintains a highly efficient cash conversion cycle with substantial negative durations across the observed periods. The trend indicates an ongoing capacity to generate cash ahead of payables, highlighting effective working capital management that likely contributes positively to the company's liquidity position and operational performance.