General Mills Inc (GIS)

Cash ratio

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Cash and cash equivalents	US$ in thousands	418,000	585,500	569,400	1,505,200	1,677,800
Short-term investments	US$ in thousands	4,600	122,700	255,300	365,600	4,900
Total current liabilities	US$ in thousands	7,033,100	7,535,700	8,019,900	8,265,800	7,491,500
Cash ratio		0.06	0.09	0.10	0.23	0.22

May 26, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($418,000K + $4,600K) ÷ $7,033,100K
= 0.06

The cash ratio of General Mills Inc has shown a decline over the past five years. As of May 26, 2024, the cash ratio stands at 0.06, indicating that the company has $0.06 in cash and cash equivalents for every $1 of current liabilities. This ratio has decreased from 0.09 in May 28, 2023, and 0.10 in May 29, 2022, showing a decreasing trend in the company's ability to cover its short-term obligations with its available cash resources.

Comparing the current cash ratio to the previous years, it is evident that General Mills Inc had a higher cash ratio in May 30, 2021, and May 31, 2020, with ratios of 0.23 and 0.22, respectively. This suggests that the company had a better liquidity position in those years compared to the most recent years.

The decreasing trend in the cash ratio indicates that General Mills Inc may be facing challenges in managing its cash resources efficiently or possibly experiencing an increase in short-term liabilities relative to its cash holdings. It is important for the company to closely monitor its liquidity position to ensure it can meet its short-term obligations in a timely manner.