General Motors Company (GM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 171,842,000 | 156,735,000 | 127,004,000 | 122,485,000 | 137,237,000 |
| Receivables | US$ in thousands | 12,378,000 | 13,333,000 | 7,394,000 | 8,035,000 | 6,797,000 |
| Receivables turnover | 13.88 | 11.76 | 17.18 | 15.24 | 20.19 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $171,842,000K ÷ $12,378,000K
= 13.88
The receivables turnover ratio measures how efficiently a company collects payments from its customers. A higher ratio indicates better efficiency in collecting receivables. General Motors Company's receivables turnover has fluctuated over the past five years, with a peak of 20.19 in 2019 and a low of 11.76 in 2022.
The ratio increased from 2019 to 2021, indicating improved efficiency in collecting receivables. However, in 2022, the ratio decreased, suggesting a potential delay in collecting payments from customers. In 2023, there was a significant improvement in the ratio to 13.88, indicating better collection efficiency compared to the previous year.
It is essential for General Motors to monitor its receivables turnover to ensure that its credit policies are effective in managing the collection of outstanding receivables. The company should continue to focus on efficient receivables management to maintain healthy cash flows and liquidity.
Peer comparison
Dec 31, 2023