Current Ratio
since 2005
Calculation
General Mills Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| May 26, 2019 | 0.59 | = | 4,186,500) | ÷ | 7,087,100) |
| May 27, 2018 | 0.56 | = | 4,123,700) | ÷ | 7,341,900) |
| May 28, 2017 | 0.76 | = | 4,061,400) | ÷ | 5,330,800) |
| May 29, 2016 | 0.79 | = | 3,937,200) | ÷ | 5,014,700) |
| May 31, 2015 | 0.77 | = | 3,785,700) | ÷ | 4,890,100) |
| May 25, 2014 | 0.81 | = | 4,393,500) | ÷ | 5,423,500) |
| May 26, 2013 | 0.81 | = | 4,298,900) | ÷ | 5,293,900) |
| May 27, 2012 | 0.96 | = | 3,691,400) | ÷ | 3,843,200) |
| May 29, 2011 | 1.07 | = | 3,902,000) | ÷ | 3,659,200) |
| May 30, 2010 | 0.92 | = | 3,480,000) | ÷ | 3,769,100) |
| May 31, 2009 | 0.98 | = | 3,534,900) | ÷ | 3,606,000) |
| May 25, 2008 | 0.75 | = | 3,620,000) | ÷ | 4,856,300) |
| May 27, 2007 | 0.52 | = | 3,053,700) | ÷ | 5,845,100) |
| May 28, 2006 | 0.52 | = | 3,176,000) | ÷ | 6,138,000) |
| May 29, 2005 | 0.73 | = | 3,055,000) | ÷ | 4,184,000) |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
1 US$ in thousands
The liquidity position from 2005 to 2019 is characterized by significant volatility and a recurring trend of operating with a current ratio below 1.0, indicating that current liabilities frequently exceeded current assets throughout the period.
- Current Assets Trend
- A general upward trajectory is observed in current assets, which grew from 3,055,000 thousand US$ in 2005 to 4,186,500 thousand US$ by 2019. The assets peaked in 2014 at 4,393,500 thousand US$, reflecting a long-term expansion of short-term resources.
- Current Liabilities Trend
- Current liabilities exhibited substantial fluctuations. Following a peak in 2006 at 6,138,000 thousand US$, liabilities decreased significantly to a low of 3,606,000 thousand US$ in 2009. However, a sharp upward trend occurred after 2017, culminating in a period high of 7,341,900 thousand US$ in 2018.
- Current Ratio Analysis
- The current ratio fluctuated between a low of 0.52 and a high of 1.07. Three distinct phases are identifiable: an initial period of low liquidity between 2006 and 2007 (0.52), a recovery phase peaking in 2011 (1.07) where current assets first exceeded current liabilities, and a subsequent decline. The most recent data points show a marked decrease in the ratio to 0.56 in 2018 and 0.59 in 2019, driven primarily by the surge in current liabilities during those years.
- Working Capital Observations
- The persistent state of the current ratio remaining below 1.0 for the majority of the analyzed timeframe suggests a structural reliance on short-term financing or an aggressive working capital management strategy. The sharp decline in the ratio toward the end of the period indicates a significant tightening of the liquidity cushion.
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Comparison to Competitors
General Mills Inc., current ratio, long-term trends, comparison to competitors
| General Mills Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| May 26, 2019 | 0.59 | 0.76 | 0.50 | 0.86 | 1.09 |
| May 27, 2018 | 0.56 | 1.05 | 0.45 | 0.99 | 1.13 |
| May 28, 2017 | 0.76 | 1.34 | 0.48 | 1.51 | 1.35 |
| May 29, 2016 | 0.79 | 1.28 | 0.59 | 1.28 | 1.07 |
| May 31, 2015 | 0.77 | 1.24 | 0.82 | 1.31 | 1.03 |
| May 25, 2014 | 0.81 | 1.02 | 0.84 | 1.14 | 1.02 |
| May 26, 2013 | 0.81 | 1.13 | 0.92 | 1.24 | 0.99 |
| May 27, 2012 | 0.96 | 1.09 | 1.05 | 1.10 | 0.97 |
| May 29, 2011 | 1.07 | 1.05 | 0.88 | 0.96 | 1.00 |
| May 30, 2010 | 0.92 | 1.17 | 1.04 | 1.11 | 1.07 |
| May 31, 2009 | 0.98 | 1.28 | 1.08 | 1.44 | 1.31 |
| May 25, 2008 | 0.75 | 0.94 | 1.03 | 1.23 | 1.47 |
| May 27, 2007 | 0.52 | 0.92 | 0.63 | 1.31 | — |
| May 28, 2006 | 0.52 | 0.95 | 0.79 | 1.33 | — |
| May 29, 2005 | 0.73 | 1.04 | 0.93 | 1.11 | — |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
Comparison to Sector (Food, Beverage & Tobacco)
General Mills Inc., current ratio, long-term trends, comparison to sector (food, beverage & tobacco)
| General Mills Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| May 26, 2019 | 0.59 | 0.81 |
| May 27, 2018 | 0.56 | 0.93 |
| May 28, 2017 | 0.76 | 1.22 |
| May 29, 2016 | 0.79 | 1.11 |
| May 31, 2015 | 0.77 | 1.15 |
| May 25, 2014 | 0.81 | 1.02 |
| May 26, 2013 | 0.81 | 1.08 |
| May 27, 2012 | 0.96 | 1.06 |
| May 29, 2011 | 1.07 | 0.98 |
| May 30, 2010 | 0.92 | 1.10 |
| May 31, 2009 | 0.98 | 1.27 |
| May 25, 2008 | 0.75 | 1.15 |
| May 27, 2007 | 0.52 | 0.87 |
| May 28, 2006 | 0.52 | 0.98 |
| May 29, 2005 | 0.73 | 1.03 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
Comparison to Industry (Consumer Staples)
General Mills Inc., current ratio, long-term trends, comparison to industry (consumer staples)
| General Mills Inc. | Consumer Staples | |
|---|---|---|
| May 26, 2019 | 0.59 | 0.82 |
| May 27, 2018 | 0.56 | 0.87 |
| May 28, 2017 | 0.76 | 1.02 |
| May 29, 2016 | 0.79 | 1.04 |
| May 31, 2015 | 0.77 | 1.06 |
| May 25, 2014 | 0.81 | 0.97 |
| May 26, 2013 | 0.81 | 0.97 |
| May 27, 2012 | 0.96 | 0.99 |
| May 29, 2011 | 1.07 | 0.97 |
| May 30, 2010 | 0.92 | 1.01 |
| May 31, 2009 | 0.98 | 1.03 |
| May 25, 2008 | 0.75 | 0.98 |
| May 27, 2007 | 0.52 | 0.91 |
| May 28, 2006 | 0.52 | 1.04 |
| May 29, 2005 | 0.73 | 0.99 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).