General Motors Company (GM)

Working capital 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
Total current assets	US$ in thousands	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	74,992,000	80,565,000	81,306,000	80,090,000
Total current liabilities	US$ in thousands	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	84,905,000	84,252,000	84,294,000	85,303,000
Working capital turnover		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, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $171,841,000K ÷ ($101,618,000K – $94,445,000K)
= 23.96

The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales. A higher ratio indicates that the company is efficiently using its working capital to support sales.

In the given data for General Motors Company, the working capital turnover ratio has shown fluctuations over the periods. As of Dec 31, 2023, the ratio stands at 10.73, indicating that for every dollar of working capital, General Motors generated $10.73 in sales during the period. This represents a significant improvement from the previous quarters.

In the previous periods, the ratio ranged from 4.91 to 6.94, suggesting some variability in the efficiency of working capital utilization. Notably, the ratio was not available for March 31, 2023, and September 30, 2022, which may indicate changes in reporting or operational activities during those periods.

Overall, the increasing trend in the working capital turnover ratio suggests that General Motors has been improving its efficiency in utilizing its working capital to generate sales. However, it is important to further analyze the components of working capital and operating activities to gain a comprehensive understanding of the company's performance.