General Motors Company (GM)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	2,494,000	2,210,000	2,144,000	1,994,000	1,091,000	109,517,000	109,579,000	109,533,000	109,459,000	105,189,000	105,116,000	105,099,000	105,425,000	119,840,000	119,968,000	120,179,000	119,903,000	132,113,000	131,917,000	167,114,000
Inventory	US$ in thousands	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	10,398,000	11,797,000	11,447,000	11,108,000
Inventory turnover		0.15	0.12	0.12	0.11	0.07	6.69	6.50	7.38	8.43	7.24	8.02	8.71	10.30	10.96	11.67	11.13	11.53	11.20	11.52	15.04

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,494,000K ÷ $16,461,000K
= 0.15

To analyze General Motors Company's inventory turnover, we can observe the trend in the inventory turnover ratios over the given period.

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times the company's inventory is sold and replaced over a specific period.

The inventory turnover ratios for General Motors Company ranged from 6.33 to 8.59 during the period from March 31, 2022, to December 31, 2023. The trend indicates that the inventory turnover has been fluctuating but generally improved over this period.

The higher inventory turnover ratios imply that General Motors Company is effectively managing its inventory, selling and replacing its inventory more frequently. This can be a positive sign as it indicates a more efficient use of resources and the potential to generate higher revenue.

However, it is important to note that an extremely high inventory turnover ratio may indicate inventory shortages and lost sales due to understocking, while a low ratio may suggest overstocking or slow-moving inventory.

Therefore, an analysis of inventory turnover should be considered in conjunction with other financial and operational metrics to provide a comprehensive evaluation of General Motors Company's inventory management efficiency.