General Motors Company (GM)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	11.26	8.59	8.83	8.40	10.63
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	15.26	23.96	16.89	16.50	120.79

General Motors Company's inventory turnover ratio has shown a downward trend over the years, decreasing from 10.63 in 2020 to 8.40 in 2021, 8.83 in 2022, 8.59 in 2023, and then increasing slightly to 11.26 in 2024. A decrease in inventory turnover may suggest that the company is taking longer to sell its inventory, which could tie up capital and lead to potential obsolescence risks.

The receivables turnover ratio data is not provided, so it is not possible to analyze how efficiently General Motors is collecting its accounts receivable from customers. A higher receivables turnover ratio would indicate that the company is collecting its receivables quickly, while a lower ratio could imply potential issues with collecting payments.

Similarly, the payables turnover ratio data is not given, making it impossible to assess how efficiently the company is paying its suppliers. A higher payables turnover ratio would suggest that the company is paying its suppliers quickly, whereas a lower ratio might indicate a longer payment period to suppliers.

The working capital turnover ratio has fluctuated over the years but remains relatively high. This ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher working capital turnover ratio typically signifies better efficiency in utilizing working capital.

In conclusion, while General Motors Company has seen fluctuations in its activity ratios, further analysis and comparison to industry averages would provide a more comprehensive understanding of the company's operational efficiency.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	32.41	42.51	41.31	43.44	34.33
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

General Motors Company's Days of Inventory on Hand (DOH) has shown some fluctuation over the years, ranging from a low of 32.41 days as of December 31, 2024, to a high of 43.44 days as of December 31, 2021. This indicates that the company has taken varying amounts of time to sell its inventory during these periods.

However, data on Days of Sales Outstanding (DSO) and Number of Days of Payables are not provided, making it challenging to evaluate the efficiency of the company's accounts receivable and accounts payable processes in converting sales into cash and managing payables effectively.

In analyzing activity ratios, it is crucial to consider all three components - inventory turnover, accounts receivable turnover, and accounts payable turnover - to gain a comprehensive understanding of a company's operational efficiency and cash flow management. Without complete data on all these ratios, a holistic assessment of General Motors Company's activity performance cannot be derived solely from the provided information.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	2.01	3.09	3.25
Total asset turnover	0.67	0.63	0.59	0.52	0.52

The fixed asset turnover ratio measures how efficiently a company is generating sales from its fixed assets. A higher ratio indicates better utilization of fixed assets to generate revenue. Looking at General Motors Company's fixed asset turnover ratio over the years, we observe a decline from 3.25 in 2020 to 2.01 in 2022, with data missing for 2023 and 2024. This decline suggests a decrease in the efficiency of GM in generating sales from its fixed assets during this period.

On the other hand, the total asset turnover ratio indicates how well a company is utilizing all its assets to generate revenue. A higher total asset turnover ratio signifies efficient use of assets to generate sales. In the case of General Motors, the total asset turnover ratio remained relatively stable from 0.52 in 2020 and 2021 to 0.67 in 2024, with a slight increase in 2022 and 2023. This indicates that GM's overall asset utilization improved over the years, as the company generated more sales relative to its total assets.

In conclusion, while General Motors experienced a decline in fixed asset turnover, its total asset turnover improved, indicating a more efficient overall utilization of assets to generate revenue. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of GM's long-term activity performance.