Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
General Mills' free cash flow and cash conversion weakened significantly this quarter compared to both the immediate prior quarter and the same quarter last year. Operating cash flow declined more sharply than capital expenditure, driving the lower free cash flow margin.
- Revenue fell while operating cash flow contracted at a faster pace, resulting in a lower free cash flow margin despite reduced capital expenditure. The decline in cash generation efficiency was driven by weaker operating cash flow relative to revenue.
- Compared to the preceding quarter, all key cash flow metrics—operating cash flow, free cash flow, and free cash flow margin—were substantially lower. Relative to the same quarter last year, the same measures also weakened, with operating cash flow showing the largest proportional decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$428.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$531.9M
Cash generated by operations before capital spending.
CapEx
$103.9M
Capital spending and related asset purchases.
FCF margin
8.8%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-05-26 | $4.7B | $863.7M | $288.5M | $575.2M | 12.2% |
| 2024-08-25 | $4.8B | $624.2M | $140.3M | $483.9M | 10.0% |
| 2024-11-24 | $5.2B | $1.2B | $160.9M | $989.6M | 18.9% |
| 2025-02-23 | $4.8B | $531.9M | $103.9M | $428.0M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Contraction
Operating cash flow decreased notably this quarter, driven by changes in restructuring, impairment, and other exit costs as well as lower net earnings excluding the divestiture impact, as noted in the filing. This was the primary factor behind the weaker free cash flow.
The contraction in operating cash flow directly reduced free cash flow and the cash conversion margin, despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue fell while operating cash flow contracted at a faster pace, resulting in a lower free cash flow margin despite reduced capital expenditure. The decline in cash generation efficiency was driven by weaker operating cash flow relative to revenue.
Compared to the preceding quarter, all key cash flow metrics—operating cash flow, free cash flow, and free cash flow margin—were substantially lower. Relative to the same quarter last year, the same measures also weakened, with operating cash flow showing the largest proportional decline.
Monitor the impact of the recently completed acquisition of Whitebridge Pet Brands and the sale of the Canada yogurt business on future cash flows and capital allocation.