General Motors Company (GM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 187,442,000 | 171,842,000 | 156,735,000 | 127,004,000 | 122,485,000 |
| Total current assets | US$ in thousands | 108,545,000 | 101,618,000 | 100,451,000 | 82,103,000 | 80,924,000 |
| Total current liabilities | US$ in thousands | 96,265,000 | 94,445,000 | 91,173,000 | 74,408,000 | 79,910,000 |
| Working capital turnover | 15.26 | 23.96 | 16.89 | 16.50 | 120.79 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $187,442,000K ÷ ($108,545,000K – $96,265,000K)
= 15.26
The working capital turnover ratio for General Motors Company has fluctuated over the past five years. It was exceptionally high at 120.79 on December 31, 2020, indicating that the company effectively managed its working capital to generate revenue. However, this ratio significantly decreased to 16.50 on December 31, 2021, and remained relatively stable around 16-24 in the subsequent years.
The declining trend from 2020 to 2021 suggests a potential inefficiency in utilizing working capital to support business operations and sales. Although there was a slight improvement in the following years, the ratio still remains lower compared to the initial high value. This may indicate a need for General Motors to optimize its working capital management strategies to enhance operational efficiency and potentially increase revenue generation in the future.
Peer comparison
Dec 31, 2024