General Mills Inc (GIS)

Quick 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
Cash	US$ in thousands	418,000	588,600	593,800	490,900	585,500	618,700	644,100	594,400	569,400	844,400	1,021,000	710,600	1,505,200	2,754,200	2,582,800	1,796,700	1,677,800	606,900	560,200	504,800
Short-term investments	US$ in thousands	4,600	—	—	—	122,700	—	—	—	255,300	—	—	—	365,600	—	—	—	4,900	—	—	—
Receivables	US$ in thousands	1,696,200	1,771,100	1,758,800	1,791,100	1,683,200	1,770,200	1,834,000	1,730,400	1,692,100	1,750,400	1,766,100	1,691,700	1,638,500	1,776,200	1,784,300	1,633,000	1,615,100	1,731,100	1,772,700	1,710,500
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
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

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 some fluctuation over the analyzed period. The quick ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets.

Looking at the trend, we can observe that the quick ratio has ranged between 0.25 to 0.52 over the past several quarters. A quick ratio below 1 indicates that General Mills Inc may have difficulty meeting its short-term obligations with its liquid assets alone.

It is important to note that a quick ratio of 0.30 in the most recent quarter indicates that General Mills Inc may have limited ability to cover its current liabilities with its quick assets, which could potentially signal liquidity challenges.

To better assess the company's liquidity position, it would be beneficial to compare the quick ratio with industry benchmarks and trends over time. Additionally, tracking any significant changes in the quick ratio and investigating the underlying reasons for such changes can provide valuable insights into General Mills Inc's financial health and liquidity management.