General Mills Inc (GIS)

Cash ratio

		May 31, 2025	May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023
Cash and cash equivalents	US$ in thousands	363,900	418,000	418,000	585,500	585,500
Short-term investments	US$ in thousands	—	0	4,600	117,200	122,700
Total current liabilities	US$ in thousands	7,857,300	7,033,100	7,033,100	7,535,700	7,535,700
Cash ratio		0.05	0.06	0.06	0.09	0.09

May 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($363,900K + $—K) ÷ $7,857,300K
= 0.05

The cash ratio of General Mills Inc. over the observed periods demonstrates a consistent decline, indicating a reduction in the company's ability to cover its short-term liabilities using its most liquid assets. As of May 28 and May 31, 2023, the cash ratio stood at 0.09, reflecting the company's capacity to meet 9% of its current liabilities with cash and cash equivalents. By the end of May 2024, this ratio decreased to 0.06, and it remained at this level through May 31, 2024. Looking forward to May 31, 2025, the cash ratio further declined to 0.05, suggesting a continued trend of diminishing liquidity in terms of cash relative to current obligations. Overall, the declining trend indicates a potential tightening in the company's liquidity buffer, which may warrant further analysis of the company's liquidity management strategies and its reliance on less liquid current assets to meet short-term liabilities.