General Motors Company (GM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 171,842,000 | 156,735,000 | 127,004,000 | 122,485,000 | 137,237,000 |
| Property, plant and equipment | US$ in thousands | 50,321,000 | 45,248,000 | 41,115,000 | 37,632,000 | 38,750,000 |
| Fixed asset turnover | 3.41 | 3.46 | 3.09 | 3.25 | 3.54 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $171,842,000K ÷ $50,321,000K
= 3.41
The fixed asset turnover ratio for General Motors Company has shown some fluctuation over the past five years. The ratio measures the efficiency of the company's use of its fixed assets to generate revenue. A higher ratio indicates more efficient utilization of fixed assets to generate sales.
In 2023, the fixed asset turnover ratio decreased to 3.41 from 3.46 in 2022, indicating a slight decrease in the efficiency of generating sales from fixed assets. This may be due to an increase in fixed assets without a corresponding increase in sales.
In 2021, the ratio increased to 3.09 from 3.25 in 2020, indicating improved efficiency in utilizing fixed assets to generate revenue. The company may have generated higher sales with the same level of fixed assets or reduced the level of fixed assets while maintaining sales.
Overall, while the fixed asset turnover ratio has fluctuated, it has remained in a relatively efficient range, suggesting that General Motors Company has been effectively utilizing its fixed assets to generate revenue over the analyzed period.
Peer comparison
Dec 31, 2023