General Motors Company (GM)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	187,442,000	171,842,000	156,735,000	127,004,000	122,485,000
Property, plant and equipment	US$ in thousands	—	—	77,949,000	41,115,000	37,632,000
Fixed asset turnover		—	—	2.01	3.09	3.25

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $187,442,000K ÷ $—K
= —

General Motors Company's fixed asset turnover ratio has shown a declining trend over the years. In December 2020, the ratio was 3.25, indicating that the company generated $3.25 in revenue for each dollar invested in fixed assets. However, by December 2021, the ratio decreased to 3.09. This decline suggests a decrease in efficiency in utilizing fixed assets to generate sales.

The trend worsened significantly in December 2022 when the fixed asset turnover ratio dropped to 2.01. This sharp decline indicates that General Motors Company's ability to generate revenue from its fixed assets decreased substantially, possibly due to inefficiencies in asset utilization or changes in the business environment.

Unfortunately, there is no data available for December 2023 and 2024, as indicated by the "—" sign. This lack of information makes it challenging to assess the company's fixed asset turnover performance for those years.

In conclusion, the decreasing trend in General Motors Company's fixed asset turnover ratio raises concerns about its efficiency in generating revenue from its investment in fixed assets. Further analysis and investigation into the underlying reasons behind the declining ratio are warranted to identify potential areas for improvement.