General Mills Inc (GIS)

Quick ratio

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Cash	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
Receivables	US$ in thousands	1,696,200	1,683,200	1,692,100	1,638,500	1,615,100
Total current liabilities	US$ in thousands	7,033,100	7,535,700	8,019,900	8,265,800	7,491,500
Quick ratio		0.30	0.32	0.31	0.42	0.44

May 26, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($418,000K + $4,600K + $1,696,200K) ÷ $7,033,100K
= 0.30

The quick ratio of General Mills Inc has shown a declining trend over the past five years, decreasing from 0.44 in May 2020 to 0.30 in May 2024. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over time. A quick ratio below 1 implies that General Mills may face difficulty in settling its current liabilities using its quick assets alone.

A quick ratio of 0.30 in May 2024 suggests that for every dollar of current liabilities, General Mills only has 30 cents of quick assets readily available to cover these obligations. This may raise concerns about the company's short-term liquidity position, as a lower quick ratio could indicate potential cash flow challenges or inefficient working capital management.

It is essential for General Mills to closely monitor and improve its quick ratio to ensure it has enough liquid assets to meet its short-term financial obligations and maintain financial stability in the near term.