General Motors Company (GM)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	164,037,000	160,856,000	154,338,000	152,014,000	149,771,000	147,206,000	147,384,000	139,334,000	135,754,000	128,235,000	115,201,000	113,011,000	109,126,000	112,161,000	118,603,000	106,125,000	108,813,000	105,290,000	107,023,000	121,812,000
Inventory	US$ in thousands	14,564,000	17,325,000	17,605,000	17,533,000	16,461,000	17,740,000	17,912,000	17,758,000	15,366,000	16,367,000	16,859,000	14,838,000	12,988,000	14,534,000	13,102,000	12,066,000	10,235,000	10,934,000	10,280,000	10,799,000
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $164,037,000K ÷ $14,564,000K
= 11.26

General Motors Company's inventory turnover ratio has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company's inventory is sold and replaced over a given period.

From an initial high of 11.28 times in March 2020, the inventory turnover ratio gradually decreased to a low of 6.83 times in June 2022 before starting to rise again. The company's inventory turnover ratio showed signs of improvement, reaching 9.28 times by September 2024 and peaking at 11.26 times by December 2024.

The decreasing trend in inventory turnover during the earlier period may suggest potential issues such as overstocking, slow-moving inventory, or challenges in keeping up with customer demand. However, the subsequent increase in the ratio indicates that General Motors has been able to better manage its inventory levels, potentially through improved inventory control, demand forecasting, or supply chain management.

Overall, General Motors' inventory turnover ratio has shown variability over the evaluated period, with signs of improvement in recent quarters. Further monitoring of this ratio will be essential to assess the company's ongoing inventory management efficiency.