General Mills Inc (GIS)

Quick ratio

		May 31, 2025	May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023
Cash	US$ in thousands	363,900	418,000	418,000	585,500	585,500
Short-term investments	US$ in thousands	—	0	4,600	117,200	122,700
Receivables	US$ in thousands	1,795,900	1,938,600	1,696,200	2,014,000	1,683,200
Total current liabilities	US$ in thousands	7,857,300	7,033,100	7,033,100	7,535,700	7,535,700
Quick ratio		0.27	0.34	0.30	0.36	0.32

May 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($363,900K + $—K + $1,795,900K) ÷ $7,857,300K
= 0.27

The quick ratio of General Mills Inc. over the observed period exhibits variations that reflect its liquidity position, particularly its ability to meet short-term obligations without relying on inventory sales. As of May 28, 2023, the quick ratio stood at 0.32, indicating that the company's liquid assets covered approximately 32% of its current liabilities. Slightly higher, the ratio increased to 0.36 by May 31, 2023, suggesting a marginal improvement in liquidity during this period.

Moving into the subsequent year, the quick ratio decreased to 0.30 on May 26, 2024, which signifies a slight decline in the company's short-term liquidity buffer, possibly attributable to changes in liquid asset levels or current liabilities. By May 31, 2024, the ratio increased again to 0.34, indicating a partial recovery in liquidity position. However, by May 31, 2025, the ratio further declined to 0.27, representing the lowest point in the observed timeframe. This downward trend over the span of approximately two years implies a gradual weakening in General Mills Inc.'s ability to quickly cover its current liabilities with liquid assets.

Overall, the observed fluctuations suggest that the company's liquidity position has been somewhat inconsistent, with a general tendency toward decreased quick ratio levels. This trend could warrant further analysis into the composition and management of liquid assets and short-term liabilities to assess potential impacts on financial flexibility and operational stability.