General Mills Inc (GIS)

Cash ratio

		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	May 31, 2022
Cash and cash equivalents	US$ in thousands	521,300	2,292,800	468,100	418,000	418,000	588,600	588,600	593,800	593,800	490,900	490,900	585,500	585,500	618,700	618,700	644,100	644,100	594,400	594,400	569,400
Short-term investments	US$ in thousands	—	—	—	0	4,600	—	—	—	—	—	—	117,200	122,700	—	—	—	—	—	—	278,500
Total current liabilities	US$ in thousands	7,876,200	8,024,300	7,289,400	7,033,100	7,033,100	7,061,900	7,061,900	7,902,200	7,902,200	7,067,800	7,067,800	7,535,700	7,535,700	9,418,300	9,418,300	9,208,200	9,208,200	8,595,500	8,595,500	8,019,900
Cash ratio		0.07	0.29	0.06	0.06	0.06	0.08	0.08	0.08	0.08	0.07	0.07	0.09	0.09	0.07	0.07	0.07	0.07	0.07	0.07	0.11

February 28, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($521,300K + $—K) ÷ $7,876,200K
= 0.07

The cash ratio of General Mills Inc fluctuated over the period analyzed. It was at a relatively low level in most periods, ranging from 0.06 to 0.11, indicating that the company has a limited amount of cash reserves compared to its current liabilities.

The cash ratio shows the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio is usually preferred as it implies a stronger ability to meet short-term obligations without having to rely on external sources of financing.

In the most recent period, as of February 28, 2025, General Mills Inc experienced a significant increase in its cash ratio to 0.29. This indicates a substantial improvement in the company's liquidity position, suggesting that it had a more robust cash position relative to its short-term obligations.

It would be important to further analyze the reasons behind this sudden increase in the cash ratio to determine if it is a sustainable improvement or just a temporary fluctuation. Investors and stakeholders should continue monitoring the company's liquidity position to ensure its ability to meet its financial commitments in the future.