General Motors Company (GM)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	171,841,000	171,970,000	169,728,000	160,741,000	156,735,000	147,211,000	132,101,000	130,509,000	127,004,000	130,938,000	139,639,000	122,250,000	122,485,000	115,793,000	115,786,000	135,068,000	137,237,000	144,810,000	145,128,000	145,828,000
Property, plant and equipment	US$ in thousands	50,321,000	49,399,000	47,941,000	46,895,000	45,248,000	42,795,000	41,943,000	41,708,000	41,115,000	39,637,000	38,822,000	37,797,000	37,632,000	36,989,000	37,066,000	37,969,000	38,750,000	37,969,000	38,188,000	38,336,000
Fixed asset turnover		3.41	3.48	3.54	3.43	3.46	3.44	3.15	3.13	3.09	3.30	3.60	3.23	3.25	3.13	3.12	3.56	3.54	3.81	3.80	3.80

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $171,841,000K ÷ $50,321,000K
= 3.41

The fixed asset turnover of General Motors Company has shown a consistent trend over the past eight quarters, with values ranging from 3.13 to 3.54. The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate sales revenue. A higher ratio indicates better utilization of fixed assets in generating sales.

The trend indicates that General Motors has been effectively using its fixed assets to generate sales, as the ratio has consistently remained above 3, indicating that for every dollar invested in fixed assets, the company has generated $3 or more in sales revenue.

The slight fluctuations in the ratio over the quarters may be attributed to changes in production efficiency, sales volume, or changes in the composition of fixed assets. Overall, the trend suggests that General Motors has been efficiently utilizing its fixed assets to drive sales revenue, which is a positive indicator of operational efficiency and asset management.