General Motors Company (GM)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		0.15	0.12	0.12	0.11	0.07	6.69	6.50	7.38	8.43	7.24	8.02	8.71	10.30	10.96	11.67	11.13	11.53	11.20	11.52	15.04
DOH	days	2,409.09	2,929.91	3,049.38	3,250.59	5,140.78	54.55	56.16	49.45	43.31	50.43	45.49	41.90	35.44	33.30	31.28	32.80	31.65	32.59	31.67	24.26

December 31, 2023 calculation

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

The days of inventory on hand (DOH) ratio measures the average number of days it takes for a company to sell its inventory. A lower DOH indicates efficient inventory management and faster turnover, while a higher DOH may suggest potential issues with inventory management or demand for the company's products.

Analyzing General Motors Company's DOH over the past eight quarters shows a fluctuating trend. The DOH has generally ranged from around 40 to 60 days, with a peak of 57.63 days in June 2022 and a low of 42.51 days in December 2023. This indicates some variability in the efficiency of inventory turnover during this period.

The decreasing trend from June 2022 to December 2023 suggests an improvement in inventory management, as it took fewer days to sell the inventory in the most recent quarter. However, the DOH figures are still relatively high, indicating that General Motors may benefit from further efforts to streamline its inventory management processes.

It's important to consider industry benchmarks and the company's specific circumstances when interpreting the DOH ratio. A deeper analysis of inventory turnover, production efficiency, and market demand could provide valuable insights into General Motors' inventory management performance and any potential areas for improvement.