General Mills Inc (GIS)

Quick ratio

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022
Cash	US$ in thousands	363,900	521,300	2,292,800	468,100	418,000	418,000	588,600	588,600	593,800	593,800	490,900	490,900	585,500	585,500	618,700	618,700	644,100	644,100	594,400	594,400
Short-term investments	US$ in thousands	—	—	—	—	0	4,600	—	—	—	—	—	—	117,200	122,700	—	—	—	—	—	—
Receivables	US$ in thousands	1,795,900	1,791,000	1,781,900	1,843,800	1,938,600	1,696,200	1,771,100	1,771,100	1,758,800	1,758,800	1,791,100	1,791,100	2,014,000	1,683,200	1,770,200	1,770,200	1,834,000	1,834,000	1,730,400	1,730,400
Total current liabilities	US$ in thousands	7,857,300	7,876,200	8,024,300	7,289,400	7,033,100	7,033,100	7,061,900	7,061,900	7,902,200	7,902,200	7,067,800	7,067,800	7,535,700	7,535,700	9,418,300	9,418,300	9,208,200	9,208,200	8,595,500	8,595,500
Quick ratio		0.27	0.29	0.51	0.32	0.34	0.30	0.33	0.33	0.30	0.30	0.32	0.32	0.36	0.32	0.25	0.25	0.27	0.27	0.27	0.27

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 analysis of General Mills Inc.'s quick ratio over the provided period reveals a generally stable liquidity position with some fluctuations. The quick ratio remained constant at 0.27 during much of 2022, specifically on August 28 and 31, as well as in late November 2022, indicating consistent short-term liquidity levels during this period. By late February 2023, the ratio experienced a slight decline to 0.25, suggesting a marginal decrease in the company's ability to cover its current liabilities with its most liquid assets.

Throughout 2023, the quick ratio exhibited some variation, reaching a notable peak of 0.36 in late May, which reflects an improved liquidity position, possibly due to increased liquid assets or reduced current liabilities. The ratio stabilized at 0.32 toward the end of August 2023, maintaining a relatively stable level of liquidity. In late 2023 and early 2024, the ratio hovered around 0.30 to 0.33, indicating modest fluctuations but no significant deterioration or improvement.

A significant increase is observed in late November 2024, when the quick ratio sharply rose to 0.51, marking a considerable enhancement in liquidity. This could signify a strategic shift to bolster liquid assets or a reduction in short-term obligations. Subsequently, the ratio declined again to levels near 0.29-0.30 by early 2025, indicating a normalization or slight tightening of liquidity.

Overall, the quick ratio for General Mills Inc. generally remains below 1.0 throughout the observed period, implying that the company tends to rely on less liquid assets relative to its current liabilities. The significant fluctuations, including the notable peak in late November 2024, suggest periods of improved liquidity management which are not consistent throughout the timeframe. The ratios indicate that while the company's liquidity buffer is relatively modest, it maintains an ability to meet immediate obligations, though with limited cushion, especially during periods of lower ratios.