Quick Ratio

The quick ratio measures a company’s ability to pay its short-term obligations using its most liquid assets (cash, marketable securities, and accounts receivable).

At 0.30x, General Mills has only $0.30 in liquid assets for every $1.00 of current liabilities, indicating a thin liquidity buffer. This is well below the sector median of 0.75x and places the stock in the 13th percentile among its peer group, meaning the vast majority of competitors maintain stronger short-term liquidity. Trend data for the metric is not available, with year-over-year and quarter-over-quarter changes both marked as N/A, so there is no basis to assess whether liquidity is improving or deteriorating. The combination of a low absolute level and no trend information points to elevated short-term financial risk, as the company could face stress meeting obligations if cash inflows slow. This metric contradicts the overall NEUTRAL verdict, because such a weak quick ratio typically signals a need for more cautious positioning rather than a balanced outlook.

Frequently Asked Questions

Closest Sector Peers