General Motors Company (GM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 15.26 | 9.16 | 10.66 | 11.90 | 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 |
General Motors Company's activity ratios provide insights into the efficiency of its operations.
1. Inventory Turnover: General Motors' inventory turnover ratio showed a fluctuating trend over the periods, ranging from a high of 11.28 in March 2020 to a low of 6.83 in June 2022. The ratio indicates the number of times inventory is sold and replaced during a period, reflecting the company's ability to manage its inventory levels effectively.
2. Receivables Turnover: The receivables turnover data is not provided for any of the periods in the dataset. This ratio is commonly used to assess how quickly a company collects outstanding payments from its customers.
3. Payables Turnover: Similar to the receivables turnover, payables turnover data is also not available for the periods in the dataset. This ratio typically measures how efficiently a company pays its suppliers for goods or services.
4. Working Capital Turnover: The working capital turnover ratio for General Motors varied significantly throughout the periods, with a high of 120.79 in December 2020 and a low of 9.16 in September 2024. This ratio reflects how effectively the company is utilizing its working capital to generate sales.
Overall, the analysis of General Motors' activity ratios indicates the company's management of inventory levels and working capital utilization, highlighting areas where the company may need to improve efficiency in its operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 32.41 | 39.31 | 41.63 | 42.10 | 40.12 | 43.99 | 44.36 | 46.52 | 41.31 | 46.59 | 53.42 | 47.92 | 43.44 | 47.30 | 40.32 | 41.50 | 34.33 | 37.90 | 35.06 | 32.36 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, I will analyze General Motors Company's activity ratios.
1. Days of Inventory on Hand (DOH):
- General Motors' DOH has shown fluctuations over the quarters. The company's inventory management improved from March 31, 2020 (32.36 days) to September 30, 2020 (37.90 days) but decreased by December 31, 2020 (34.33 days).
- Subsequently, the DOH increased in the following periods, reaching a peak of 53.42 days on June 30, 2022, before declining to 32.41 days by December 31, 2024.
- Overall, General Motors experienced some variability in managing its inventory efficiently, with a notable decrease in DOH towards the end of the period.
2. Days of Sales Outstanding (DSO):
- The data does not provide information on the Days of Sales Outstanding (DSO) for General Motors, indicating a lack of insights into the company's accounts receivable turnover efficiency.
3. Number of Days of Payables:
- Similar to DSO, the information regarding the Number of Days of Payables is unavailable in the dataset, limiting the analysis of General Motors' effectiveness in managing its accounts payable.
In conclusion, General Motors' inventory management witnessed fluctuations during the period under review, with the company experiencing some variability in converting its inventory into sales efficiently. However, due to the absence of data on DSO and payables turnover, a comprehensive assessment of the company's overall efficiency in managing working capital is constrained.
See also:
General Motors Company Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 2.14 | 3.54 | 3.43 | 2.01 | 3.44 | 3.16 | 3.13 | 3.09 | 3.30 | 3.60 | 3.23 | 3.25 | 3.13 | 3.12 | 3.56 |
| Total asset turnover | 0.67 | 0.63 | 0.63 | 0.63 | 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 |
General Motors Company's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, provide insights into the efficiency of the company in generating sales revenue relative to its investment in fixed assets and total assets, respectively.
The Fixed Asset Turnover ratio has fluctuated over the years, indicating varying levels of efficiency in utilizing fixed assets to generate sales. Historically, the company maintained a stable range for this ratio, showing an average of around 3.00. However, there was a significant decline in the Fixed Asset Turnover ratio towards the end of 2022 and throughout 2023, hitting a low of 2.01 in December 2022, before recovering to 3.54 in June 2023. The ratio then dropped to 2.14 in September 2023, suggesting possible challenges in efficiently leveraging fixed assets to drive revenue.
On the other hand, the Total Asset Turnover ratio reflects General Motors Company's ability to generate sales in relation to its total asset base. The company exhibited a relatively stable trend in this ratio, with slight fluctuations within the range of 0.48 to 0.63 from 2020 to 2024. Notably, there was a consistent upward trend in the Total Asset Turnover ratio from 2020 to 2023, indicating improved efficiency in asset utilization to drive revenue.
Overall, the analysis of General Motors Company's long-term activity ratios suggests the need for the company to focus on optimizing the utilization of fixed assets to enhance revenue generation while maintaining efficiency in leveraging total assets to drive sales growth. Additionally, monitoring and managing fluctuations in these ratios can help the company maintain a balanced and effective operational performance.
See also:
General Motors Company Long-term (Investment) Activity Ratios (Quarterly Data)