General Mills Inc (GIS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.30 | 0.33 | 0.30 | 0.32 | 0.32 | 0.25 | 0.27 | 0.27 | 0.31 | 0.38 | 0.36 | 0.30 | 0.42 | 0.47 | 0.52 | 0.45 | 0.44 | 0.35 | 0.32 | 0.32 |
| 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 |
General Mills Inc's liquidity ratios show fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has been hovering around 0.6 to 0.7 in recent quarters. This indicates that the company may have some difficulty meeting its short-term obligations.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also been relatively low, ranging from 0.25 to 0.52. This suggests that General Mills may have limited ability to meet its immediate liabilities without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has shown significant variability, ranging from 0.06 to 0.31. This indicates that the company's cash position has been fluctuating, with some quarters showing a stronger ability to cover short-term obligations with cash on hand.
Overall, General Mills Inc's liquidity ratios suggest that the company may need to carefully manage its working capital and cash flow to ensure it can meet its short-term financial commitments efficiently. Management should monitor these ratios closely and take appropriate actions to improve liquidity if needed.
See also:
Additional liquidity measure
| 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 conversion cycle | days | -17.39 | -8.69 | -5.57 | -0.84 | -15.30 | -8.64 | -10.88 | -8.18 | -19.11 | -9.30 | -6.41 | -0.81 | -14.57 | -6.55 | -7.57 | -7.84 | -14.42 | -0.19 | 2.07 | 8.48 |
The cash conversion cycle of General Mills Inc has shown variability over the historical periods analyzed. The company's cash conversion cycle has ranged from -19.11 days to 8.48 days over the past few years. It is noteworthy that negative values indicate that General Mills Inc is able to convert its resources into cash quickly, which can be an efficient indicator of managing its working capital effectively. On the other hand, positive values suggest that there may be a lag in the company's cash conversion process.
It is crucial to note that a shorter cash conversion cycle is generally favorable as it implies that the company is able to efficiently convert its investments in inventory into cash. During the most recent period, the cash conversion cycle was -17.39 days, indicating efficient working capital management. It is essential for General Mills Inc to consistently monitor and improve its cash conversion cycle to sustain its financial health and operational efficiency.