General Motors Company (GM)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	32.41	42.51	41.31	43.44	34.33
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	32.41	42.51	41.31	43.44	34.33

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.41 + — – —
= 32.41

General Motors Company's cash conversion cycle has shown fluctuations over the past five years. In December 2020, the company's cash conversion cycle was 34.33 days, indicating that it took around 34 days for General Motors to convert its investments in inventory and accounts receivable into cash.

The cycle increased to 43.44 days by December 2021, suggesting a slower conversion of investments into cash, potentially requiring more time to collect receivables or manage inventory turnover. Subsequently, by December 2022, the cycle decreased to 41.31 days, showing a slight improvement in the efficiency of GM's cash conversion.

In December 2023, the cash conversion cycle increased slightly to 42.51 days, indicating a potential slowdown in the collection of receivables or management of inventory levels. However, by December 2024, the cycle improved significantly to 32.41 days, suggesting that General Motors was able to streamline its cash conversion process and turn investments into cash more rapidly.

Overall, General Motors' cash conversion cycle has shown variability over the years, with fluctuations indicating changes in the company's efficiency in managing working capital components. The trend from 2020 to 2024 reflects some improvements in cash conversion efficiency, although there were fluctuations along the way.