General Mills Inc (GIS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	418,000	588,600	593,800	490,900	585,500	618,700	644,100	594,400	569,400	844,400	1,021,000	710,600	1,505,200	2,754,200	2,582,800	1,796,700	1,677,800	606,900	560,200	504,800
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	7,061,900	7,902,200	7,067,800	7,535,700	9,418,300	9,208,200	8,595,500	8,019,900	6,839,000	7,813,200	8,135,400	8,265,800	9,589,700	8,464,200	7,612,700	7,491,500	6,696,600	7,362,300	6,903,400
Cash ratio		0.06	0.08	0.08	0.07	0.09	0.07	0.07	0.07	0.10	0.12	0.13	0.09	0.23	0.29	0.31	0.24	0.22	0.09	0.08	0.07

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 fluctuated over the period indicated by the data provided. The cash ratio is a liquidity ratio that indicates the company's ability to cover its current liabilities using only its cash and cash equivalents.

From May 2019 to May 2021, the cash ratio ranged between 0.07 and 0.31, displaying some variability. The ratio reached its highest point of 0.31 in November 2020, indicating a strong ability to cover current liabilities with cash on hand during that period. Subsequently, the ratio experienced a decline in the next two quarters but showed an upward trend by November 2021.

From November 2021 onwards, the cash ratio consistently decreased, hitting a low of 0.06 in May 2024. This decreasing trend may signal a reduction in the company's ability to meet short-term obligations solely with cash and cash equivalents.

Overall, the fluctuating cash ratio of General Mills Inc suggests varying levels of liquidity and highlights the importance of closely monitoring the company's cash position to ensure it can meet its short-term financial obligations effectively.