General Motors Company (GM)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	32.41	39.31	41.63	42.10	40.12	43.99	44.36	46.52	41.31	46.59	53.42	47.92	43.44	47.30	40.32	41.50	34.33	37.90	35.06	32.36
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	32.41	39.31	41.63	42.10	40.12	43.99	44.36	46.52	41.31	46.59	53.42	47.92	43.44	47.30	40.32	41.50	34.33	37.90	35.06	32.36

December 31, 2024 calculation

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

The cash conversion cycle of General Motors Company has shown fluctuations over the past several reporting periods. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory into cash flows from sales.

From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 32.36 days to a high of 53.42 days. Generally, a shorter cash conversion cycle is considered more favorable as it indicates that the company is efficient in managing its working capital and can quickly convert its inventory into cash.

In the early periods, the company showed relatively stable or slightly improving cash conversion cycles, but from September 30, 2021, there was an increasing trend up to June 30, 2022, reaching the highest observed cycle of 53.42 days. Subsequently, the cash conversion cycle decreased to a low of 32.41 days by December 31, 2024, showing signs of improvement in the company's working capital management efficiency.

It is important for General Motors to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow and liquidity within the business. Fluctuations in the cycle can provide insights into the company's inventory management, payment terms with suppliers, and collection policies with customers, highlighting areas for potential improvement or optimization.