General Motors Company (GM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		11.26	9.28	8.77	8.67	9.10	8.30	8.23	7.85	8.83	7.83	6.83	7.62	8.40	7.72	9.05	8.80	10.63	9.63	10.41	11.28
DOH	days	32.41	39.31	41.63	42.10	40.12	43.99	44.36	46.52	41.31	46.59	53.42	47.92	43.44	47.30	40.32	41.50	34.33	37.90	35.06	32.36

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.26
= 32.41

General Motors Company's days of inventory on hand (DOH) has shown fluctuations over the past few years based on the provided data.

From March 31, 2020, to June 30, 2021, the DOH increased steadily from 32.36 days to 40.32 days, indicating a longer period of time inventory was held before being sold. This could suggest possible inefficiencies in inventory management during this period.

Between September 30, 2021, and June 30, 2022, there was a significant spike in DOH from 47.30 days to 53.42 days, which could indicate an excess of inventory relative to sales demand during that time.

Subsequently, from September 30, 2022, to December 31, 2024, General Motors managed to bring down the DOH to a range between 32.41 days to 39.31 days. This reduction reflects a more efficient inventory management strategy, possibly through better forecasting, production planning, and/or sales execution.

Overall, fluctuations in DOH can provide insights into General Motors' inventory management efficiency, with lower DOH values generally indicating better management and higher turnover of inventory. It is essential for the company to strike a balance between holding enough inventory to meet demand while avoiding excessive carrying costs associated with holding too much inventory for extended periods.