General Mills Inc (GIS)

Quick ratio

		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	May 31, 2022
Cash	US$ in thousands	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	569,400
Short-term investments	US$ in thousands	—	—	—	0	4,600	—	—	—	—	—	—	117,200	122,700	—	—	—	—	—	—	278,500
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	—
Total current liabilities	US$ in thousands	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	8,019,900
Quick ratio		0.07	0.29	0.06	0.06	0.30	0.08	0.33	0.08	0.30	0.07	0.32	0.09	0.32	0.07	0.25	0.07	0.27	0.07	0.27	0.11

February 28, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($521,300K + $—K + $—K) ÷ $7,876,200K
= 0.07

General Mills Inc's quick ratio fluctuated over the reported periods, ranging from a low of 0.06 to a high of 0.33. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio suggests a better ability to cover short-term liabilities.

The quick ratio of General Mills Inc seems to have improved towards the latter half of the reporting period, indicating a potential enhancement in the company's liquidity position. However, it is important to note that some periods, such as May 31, 2022, and August 31, 2023, displayed relatively low quick ratios, which may indicate potential liquidity challenges.

Overall, a quick ratio below 1.0 may suggest that General Mills Inc may have difficulty meeting its short-term obligations with its current liquid assets alone. It would be valuable to monitor future trends in the quick ratio to assess the company's liquidity management and financial health.