General Motors Company (GM)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	187,441,000	182,718,000	178,093,000	174,871,000	171,842,000	171,971,000	169,728,000	160,740,000	156,734,000	147,210,000	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
Total current assets	US$ in thousands	108,545,000	115,419,000	112,064,000	106,470,000	101,618,000	110,721,000	106,804,000	98,832,000	100,451,000	98,271,000	91,094,000	88,594,000	82,103,000	77,791,000	82,609,000	82,091,000	80,924,000	89,177,000	87,497,000	97,699,000
Total current liabilities	US$ in thousands	96,265,000	95,463,000	95,363,000	91,777,000	94,445,000	96,820,000	92,718,000	90,185,000	91,173,000	86,003,000	79,398,000	79,555,000	74,408,000	71,951,000	74,811,000	76,323,000	79,910,000	80,603,000	77,904,000	91,292,000
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $187,441,000K ÷ ($108,545,000K – $96,265,000K)
= 15.26

The working capital turnover ratio for General Motors Company has shown fluctuations over the periods provided. The ratio measures how efficiently the company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.

In the first half of 2020, the working capital turnover ratio decreased from 21.08 in March to 12.07 in June, indicating a decline in the efficiency of working capital management. However, this ratio increased in the subsequent quarters of 2020, with a significant spike to 120.79 in December, suggesting a substantial improvement in working capital utilization efficiency.

Throughout 2021 and the first half of 2022, the ratio fluctuated within a moderate range, reflecting some variability in working capital efficiency. In the second half of 2022 and the first half of 2023, the ratio declined further, indicating a potential decrease in working capital turnover efficiency.

However, by the end of 2023, the working capital turnover ratio increased significantly to 23.96, showing a notable improvement in working capital efficiency. In the following periods, the ratios fluctuated around 10 to 16, reflecting mixed performance in utilizing working capital effectively.

Overall, the analysis of General Motors Company's working capital turnover ratio indicates varying levels of efficiency in managing working capital to support sales revenue generation during the periods examined. It is essential for the company to monitor and optimize its working capital management practices to maintain stable and efficient operations.