General Mills Inc (GIS)

Current 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
Total current assets	US$ in thousands	4,580,900	4,654,500	5,045,600	5,107,000	5,176,400	5,116,000	5,330,600	5,134,000	5,089,800	5,028,600	6,612,400	6,320,200	5,754,500	6,612,400	6,408,200	5,354,800	5,121,300	4,308,500	4,478,900	4,261,400
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
Current ratio		0.65	0.66	0.64	0.72	0.69	0.54	0.58	0.60	0.63	0.74	0.85	0.78	0.70	0.69	0.76	0.70	0.68	0.64	0.61	0.62

May 26, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,580,900K ÷ $7,033,100K
= 0.65

The current ratio of General Mills Inc has fluctuated over the past several quarters, ranging from 0.54 to 0.85. Generally, a current ratio below 1 indicates that a company may have difficulty meeting its short-term obligations with its current assets.

In the most recent quarter, the current ratio was 0.65, which suggests that General Mills Inc may be facing some liquidity challenges in terms of meeting its current liabilities. However, it is essential to consider industry benchmarks and historical trends to gain a comprehensive understanding of the company's liquidity position.

Looking back at the historical data, the company had its highest current ratio of 0.85 in the fourth quarter of fiscal year 2022. This indicates that General Mills Inc had a stronger ability to cover its short-term obligations with its current assets during that period.

On the other hand, the lowest current ratio of 0.54 was recorded in the first quarter of fiscal year 2023, which may raise concerns about the company's short-term liquidity position during that period.

Overall, the fluctuating nature of General Mills Inc's current ratio over the past several quarters highlights the importance of closely monitoring the company's liquidity position to ensure it can meet its short-term financial obligations effectively.