Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
General Mills Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | General Mills Inc. inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | General Mills Inc. receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | General Mills Inc. payables turnover ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | General Mills Inc. number of days of inventory outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | General Mills Inc. number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | General Mills Inc. cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019. |
Inventory Turnover
General Mills Inc., inventory turnover calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of sales | 11,108,400) | 10,312,900) | 10,056,000) | 10,733,600) | 11,681,100) | 11,539,800) | |
| Inventories | 1,559,300) | 1,642,200) | 1,483,600) | 1,413,700) | 1,540,900) | 1,559,400) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 7.12 | 6.28 | 6.78 | 7.59 | 7.58 | 7.40 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Altria Group Inc. | 3.09 | — | — | — | — | — | |
| Coca-Cola Co. | 4.33 | — | — | — | — | — | |
| Mondelēz International Inc. | 6.10 | — | — | — | — | — | |
| PepsiCo Inc. | 9.03 | — | — | — | — | — | |
| Inventory Turnover, Sector | |||||||
| Food, Beverage & Tobacco | 5.83 | — | — | — | — | — | |
| Inventory Turnover, Industry | |||||||
| Consumer Staples | 8.24 | — | — | — | — | — | |
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).
1 2019 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 11,108,400 ÷ 1,559,300 = 7.12
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | General Mills Inc. inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Receivables Turnover
General Mills Inc., receivables turnover calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 16,865,200) | 15,740,400) | 15,619,800) | 16,563,100) | 17,630,300) | 17,909,600) | |
| Receivables | 1,679,700) | 1,684,200) | 1,430,100) | 1,360,800) | 1,386,700) | 1,483,600) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 10.04 | 9.35 | 10.92 | 12.17 | 12.71 | 12.07 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Altria Group Inc. | 165.20 | — | — | — | — | — | |
| Coca-Cola Co. | 9.38 | — | — | — | — | — | |
| Mondelēz International Inc. | 11.69 | — | — | — | — | — | |
| PepsiCo Inc. | 8.59 | — | — | — | — | — | |
| Receivables Turnover, Sector | |||||||
| Food, Beverage & Tobacco | 10.98 | — | — | — | — | — | |
| Receivables Turnover, Industry | |||||||
| Consumer Staples | 34.73 | — | — | — | — | — | |
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).
1 2019 Calculation
Receivables turnover = Net sales ÷ Receivables
= 16,865,200 ÷ 1,679,700 = 10.04
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | General Mills Inc. receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Payables Turnover
General Mills Inc., payables turnover calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of sales | 11,108,400) | 10,312,900) | 10,056,000) | 10,733,600) | 11,681,100) | 11,539,800) | |
| Accounts payable | 2,854,100) | 2,746,200) | 2,119,800) | 2,046,500) | 1,684,000) | 1,611,300) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 3.89 | 3.76 | 4.74 | 5.24 | 6.94 | 7.16 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Altria Group Inc. | 21.80 | — | — | — | — | — | |
| Coca-Cola Co. | 3.84 | — | — | — | — | — | |
| Mondelēz International Inc. | 2.65 | — | — | — | — | — | |
| PepsiCo Inc. | 3.76 | — | — | — | — | — | |
| Payables Turnover, Sector | |||||||
| Food, Beverage & Tobacco | 3.74 | — | — | — | — | — | |
| Payables Turnover, Industry | |||||||
| Consumer Staples | 6.89 | — | — | — | — | — | |
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).
1 2019 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 11,108,400 ÷ 2,854,100 = 3.89
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | General Mills Inc. payables turnover ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
Working Capital Turnover
General Mills Inc., working capital turnover calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 4,186,500) | 4,123,700) | 4,061,400) | 3,937,200) | 3,785,700) | 4,393,500) | |
| Less: Current liabilities | 7,087,100) | 7,341,900) | 5,330,800) | 5,014,700) | 4,890,100) | 5,423,500) | |
| Working capital | (2,900,600) | (3,218,200) | (1,269,400) | (1,077,500) | (1,104,400) | (1,030,000) | |
| Net sales | 16,865,200) | 15,740,400) | 15,619,800) | 16,563,100) | 17,630,300) | 17,909,600) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Altria Group Inc. | — | — | — | — | — | — | |
| Coca-Cola Co. | — | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Food, Beverage & Tobacco | — | — | — | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Staples | — | — | — | — | — | — | |
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).
1 2019 Calculation
Working capital turnover = Net sales ÷ Working capital
= 16,865,200 ÷ -2,900,600 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
General Mills Inc., average inventory processing period calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 7.12 | 6.28 | 6.78 | 7.59 | 7.58 | 7.40 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 51 | 58 | 54 | 48 | 48 | 49 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Altria Group Inc. | 118 | — | — | — | — | — | |
| Coca-Cola Co. | 84 | — | — | — | — | — | |
| Mondelēz International Inc. | 60 | — | — | — | — | — | |
| PepsiCo Inc. | 40 | — | — | — | — | — | |
| Average Inventory Processing Period, Sector | |||||||
| Food, Beverage & Tobacco | 63 | — | — | — | — | — | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Staples | 44 | — | — | — | — | — | |
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).
1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 7.12 = 51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | General Mills Inc. number of days of inventory outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Average Receivable Collection Period
General Mills Inc., average receivable collection period calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 10.04 | 9.35 | 10.92 | 12.17 | 12.71 | 12.07 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 36 | 39 | 33 | 30 | 29 | 30 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Altria Group Inc. | 2 | — | — | — | — | — | |
| Coca-Cola Co. | 39 | — | — | — | — | — | |
| Mondelēz International Inc. | 31 | — | — | — | — | — | |
| PepsiCo Inc. | 43 | — | — | — | — | — | |
| Average Receivable Collection Period, Sector | |||||||
| Food, Beverage & Tobacco | 33 | — | — | — | — | — | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Staples | 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).
1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.04 = 36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
General Mills Inc., operating cycle calculation, comparison to benchmarks
No. days
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 51 | 58 | 54 | 48 | 48 | 49 | |
| Average receivable collection period | 36 | 39 | 33 | 30 | 29 | 30 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 87 | 97 | 87 | 78 | 77 | 79 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Altria Group Inc. | 120 | — | — | — | — | — | |
| Coca-Cola Co. | 123 | — | — | — | — | — | |
| Mondelēz International Inc. | 91 | — | — | — | — | — | |
| PepsiCo Inc. | 83 | — | — | — | — | — | |
| Operating Cycle, Sector | |||||||
| Food, Beverage & Tobacco | 96 | — | — | — | — | — | |
| Operating Cycle, Industry | |||||||
| Consumer Staples | 55 | — | — | — | — | — | |
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).
1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 51 + 36 = 87
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
General Mills Inc., average payables payment period calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 3.89 | 3.76 | 4.74 | 5.24 | 6.94 | 7.16 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 94 | 97 | 77 | 70 | 53 | 51 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Altria Group Inc. | 17 | — | — | — | — | — | |
| Coca-Cola Co. | 95 | — | — | — | — | — | |
| Mondelēz International Inc. | 138 | — | — | — | — | — | |
| PepsiCo Inc. | 97 | — | — | — | — | — | |
| Average Payables Payment Period, Sector | |||||||
| Food, Beverage & Tobacco | 97 | — | — | — | — | — | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Staples | 53 | — | — | — | — | — | |
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).
1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.89 = 94
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | General Mills Inc. number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |
Cash Conversion Cycle
General Mills Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 51 | 58 | 54 | 48 | 48 | 49 | |
| Average receivable collection period | 36 | 39 | 33 | 30 | 29 | 30 | |
| Average payables payment period | 94 | 97 | 77 | 70 | 53 | 51 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | -7 | 0 | 10 | 8 | 24 | 28 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Altria Group Inc. | 103 | — | — | — | — | — | |
| Coca-Cola Co. | 28 | — | — | — | — | — | |
| Mondelēz International Inc. | -47 | — | — | — | — | — | |
| PepsiCo Inc. | -14 | — | — | — | — | — | |
| Cash Conversion Cycle, Sector | |||||||
| Food, Beverage & Tobacco | -1 | — | — | — | — | — | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Staples | 2 | — | — | — | — | — | |
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).
1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 51 + 36 – 94 = -7
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | General Mills Inc. cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019. |