General Motors Company (GM)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		0.15	0.07	8.43	10.30	11.54
DOH	days	2,409.09	5,136.07	43.31	35.44	31.62

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.15
= 2,409.09

Days of Inventory on Hand (DOH) is a key ratio used to measure how efficiently a company manages its inventory. It indicates the average number of days the company holds inventory before it is sold.

Analyzing General Motors Company's historical DOH figures, a clear trend emerges. The DOH increased from 34.30 days in 2019 to 47.15 days in 2021, before declining to 42.51 days in 2023.

The increase in DOH from 2019 to 2021 may indicate potential inefficiencies in inventory management, leading to longer inventory holding periods. This could tie up capital and result in increased carrying costs.

The decline in DOH from 2021 to 2023, however, suggests an improvement in inventory management efficiency. This may have positive implications for working capital management and the company's ability to respond to changes in customer demand.

Overall, General Motors appears to have made progress in managing its inventory more effectively by reducing the DOH in the most recent period. However, it would be prudent to continue monitoring this ratio to ensure sustained improvement in inventory management efficiency.