The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. General Mills's quick ratio for the quarter that ended in Aug. 2023 was 0.41.
General Mills has a quick ratio of 0.41. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for General Mills's Quick Ratio or its related term are showing as below:
GIS'
s Quick Ratio Range Over the Past 10 Years
Min: 0.32 Med: 0.47 Max: 0.64
Current: 0.41
During the past 13 years, General Mills's highest Quick Ratio was 0.64. The lowest was 0.32. And the median was 0.47.
GIS's Quick Ratio is ranked worse than 86.7% of 1895
companies
in the Consumer Packaged Goods industry
Industry Median: 1.04
vs GIS: 0.41
General Mills Quick Ratio Historical Data
The historical data trend for General Mills's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
General Mills Annual Data
Trend
May14
May15
May16
May17
May18
May19
May20
May21
May22
May23
Quick Ratio
0.37
0.49
0.48
0.40
0.40
General Mills Quarterly Data
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Quick Ratio
0.35
0.35
0.32
0.40
0.41
Competitive Comparison
For the Packaged Foods subindustry, General Mills's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
General Mills Quick Ratio Distribution
For the Consumer Packaged Goods industry and Consumer Defensive sector, General Mills's Quick Ratio distribution charts can be found below:
* The bar in red indicates where General Mills's Quick Ratio falls into.
General Mills Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
General Mills's Quick Ratio for the fiscal year that ended in May. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
General Mills (NYSE:GIS) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
General Mills Quick Ratio Related Terms
Thank you for viewing the detailed overview of General Mills's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
General Mills is a global packaged food company that produces snacks, cereal, convenient meals, yogurt, dough, baking mixes and ingredients, pet food, and super-premium ice cream. Its largest brands are Nature Valley, Cheerios, Old El Paso, Yoplait, Pillsbury, Betty Crocker, Blue Buffalo, and Haagen-Dazs. In fiscal 2023, 81% of its revenue was derived from the United States, although the company also operates in Canada, Europe, Australia, Asia, and Latin America. While most of General Mills' products are sold through retail stores to consumers, the company also sells products into the foodservice channel and the commercial baking industry.
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