General Motors Company (GM)

Receivables 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
Revenue (ttm)	US$ in thousands	171,841,000	171,970,000	169,728,000	160,741,000	156,735,000	147,211,000	132,101,000	130,509,000	127,004,000	130,938,000	139,639,000	122,250,000	122,485,000	115,793,000	115,786,000	135,068,000	137,237,000	144,810,000	145,128,000	145,828,000
Receivables	US$ in thousands	12,378,000	13,923,000	14,068,000	13,702,000	13,333,000	14,021,000	12,417,000	11,946,000	7,394,000	8,091,000	8,167,000	9,126,000	8,035,000	9,939,000	7,946,000	7,536,000	6,797,000	6,924,000	10,362,000	12,116,000
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $171,841,000K ÷ $12,378,000K
= 13.88

The receivables turnover ratio measures how effectively a company is collecting cash from its credit sales. A high receivables turnover indicates that the company is efficient in collecting outstanding payments from its customers.

Looking at General Motors Company's receivables turnover for the past eight quarters, we observe a consistent increase in the ratio. The ratio has steadily improved from 10.50 in September 2022 to 13.88 in December 2023. This indicates that General Motors has become increasingly efficient in collecting payments from its customers over the quarters.

The upward trend in the receivables turnover ratio reflects a positive sign of effective credit management and collection policies by General Motors. It implies that the company is managing its accounts receivable effectively, which can have a favorable impact on its cash flow and working capital management.

However, it's essential to note that while a high turnover ratio is generally positive, an unusually high ratio could suggest overly aggressive credit policies, or potentially a tightening of credit terms that may have negative implications for future sales.

In conclusion, the increasing trend in General Motors' receivables turnover ratio is indicative of the company's efficient management of its credit sales collection process. This improvement suggests that the company has been successful in optimizing its accounts receivable turnover, which is a positive sign for its overall financial management.