General Motors Company (GM)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	13.88	12.35	12.06	11.73	11.76	10.50	10.64	10.92	17.18	16.18	17.10	13.40	15.24	11.65	14.57	17.92	20.19	20.91	14.01	12.04
Payables turnover	0.09	0.07	0.07	0.07	0.04	4.07	4.23	4.34	5.37	5.64	4.90	5.14	5.29	5.73	7.92	6.00	5.70	6.17	5.81	6.80
Working capital turnover	23.96	12.37	12.05	18.59	16.89	12.00	11.29	14.44	16.50	22.42	17.91	21.19	120.79	13.51	12.07	21.08	—	—	—	—

The activity ratios of General Motors Company provide insights into how efficiently the company manages its resources.

The inventory turnover ratio has shown a consistent trend of improvement, indicating that General Motors is effectively managing its inventory levels and selling its products efficiently. This suggests effective demand forecasting and production planning, leading to optimal inventory management.

The receivables turnover ratio reflects how quickly the company collects its accounts receivable. General Motors has demonstrated a positive trend in this ratio, indicating an improvement in its collection process and efficient management of credit sales. This could potentially lead to reduced bad debts and improved liquidity.

On the other hand, the payables turnover ratio has been relatively stable, indicating that the company is able to maintain its payment terms with suppliers consistently and efficiently. This could suggest good relationships with suppliers and effective working capital management.

The working capital turnover ratio has shown significant fluctuations. While an increase in this ratio is generally positive, the absence of data for certain periods makes it challenging to assess the overall trend. However, the substantial fluctuations suggest that General Motors may have experienced variances in its working capital efficiency, which could be due to changes in operating activities or industry-specific factors.

Overall, General Motors' activity ratios reflect efficient management of inventory, improved collections from customers, consistent payables management, and some volatility in working capital turnover. These trends indicate that the company is effectively utilizing its resources and managing its operational activities efficiently.

Average number of days

		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
Days of inventory on hand (DOH)	days	2,409.09	2,929.91	3,049.38	3,250.59	5,140.78	54.55	56.16	49.45	43.31	50.43	45.49	41.90	35.44	33.30	31.28	32.80	31.65	32.59	31.67	24.26
Days of sales outstanding (DSO)	days	26.29	29.55	30.25	31.11	31.05	34.76	34.31	33.41	21.25	22.55	21.35	27.25	23.94	31.33	25.05	20.36	18.08	17.45	26.06	30.33
Number of days of payables	days	4,114.52	5,018.67	5,073.23	5,295.79	9,195.59	89.61	86.24	84.11	68.00	64.71	74.42	71.01	68.99	63.70	46.11	60.84	63.98	59.14	62.86	53.64

Days of Inventory on Hand (DOH) measures the average number of days it takes for General Motors to sell its inventory. Over the past eight quarters, DOH has fluctuated, reaching a high of 57.63 days in the second quarter of 2022 and a low of 42.51 days at the end of 2023. This indicates variability in inventory management efficiency.

Days of Sales Outstanding (DSO) reflects the average number of days it takes for the company to collect revenue after making a sale. The DSO has generally decreased from the third quarter of 2022 to the end of 2023, indicating an improvement in the company's accounts receivable management.

Number of Days of Payables measures how long it takes for General Motors to pay its suppliers. The trend has been relatively stable, with slight fluctuations over the quarters. At the end of 2023, the number of days of payables was 72.61 days, suggesting that the company takes approximately 72 days to settle its payables.

Overall, the activity ratios reflect some variability in the efficiency of inventory management, a generally improving trend in accounts receivable collection, and relatively stable payables management over the period.

Long-term

	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
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
Total asset turnover	0.63	0.61	0.62	0.60	0.59	0.57	0.52	0.52	0.52	0.55	0.58	0.51	0.52	0.48	0.49	0.55	0.60	0.63	0.62	0.63

The fixed asset turnover ratio for General Motors Company has been relatively stable, ranging between 3.13 and 3.54 over the past eight quarters. This suggests that the company is efficiently utilizing its fixed assets to generate sales, with a higher turnover indicating better asset utilization.

Meanwhile, the total asset turnover ratio has also shown an upward trend, reaching 0.63 in December 2023 from 0.52 in March 2022. This indicates that the company has been improving its overall asset utilization to generate sales revenue.

Overall, both the fixed asset turnover and total asset turnover ratios demonstrate General Motors' effective management of its assets to drive sales, which is a positive indication of its operational efficiency.