Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Tesla Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Inventory turnover
- The inventory turnover ratio shows a general declining trend from 6.99 in March 2022 to a low of 4.6 in March 2023, indicating slower inventory movement during this period. Subsequently, it recovers gradually, reaching 6.68 by September 2024 before slightly declining again. This fluctuation suggests periods of varying inventory efficiency with a notable dip around early 2023.
- Receivables turnover
- Receivables turnover increased significantly from 16.72 in March 2020 to a peak of 38.07 in December 2023, reflecting improved efficiency in collecting receivables. However, post peak, the ratio fluctuates downward, stabilizing around the mid-20 range by early 2025, which may indicate some easing in collection efficiency.
- Payables turnover
- Payables turnover displays an increasing trend overall, rising from around 4.12 in early 2020 to a peak of 6.43 in September 2024. This suggests faster payment to suppliers over the period, with a slight decline near the end of the timeline, indicating changes in payment policies or supplier terms.
- Working capital turnover
- Working capital turnover ratio peaked at 8.19 in June 2022 after a strong upward trend from 2.53 in March 2020. After the peak, it gradually declined to 3.23 by March 2025, implying reduced efficiency in using working capital to generate revenue in the later periods.
- Average inventory processing period
- The average inventory processing period decreased initially from 60 days in March 2020 to 52 days in March 2021, indicating faster inventory use. However, it then increased steadily, peaking at 79 days in March 2023 before dropping again to 55 days in September 2024. The variation denotes shifts in inventory management effectiveness.
- Average receivable collection period
- This period shortened notably from 22 days in March 2020 to a low of 10 days in December 2023, reflecting faster customer payments. Following this, there was some lengthening to 17 days in September 2024, indicating slight loosening of collection terms or slower payment.
- Operating cycle
- The operating cycle fell from 82 days in March 2020 to 65 days in March 2021, denoting improved operational efficiency. Afterward, it increased to a peak of 92 days in December 2022 and March 2023, suggesting slower overall operational turnover. Subsequently, it saw a moderate decline, fluctuating between 72 and 90 days toward early 2025.
- Average payables payment period
- The average payment period to suppliers decreased significantly from 89 days in March 2020 to 57 days in September 2024. This indicates quicker payment practices, potentially affecting cash outflows. Some fluctuations are observed, but the overall trend is a reduction in payables days.
- Cash conversion cycle
- The cash conversion cycle remained consistently negative from late 2020 until mid-2023, reaching as low as -26 days in March 2022, indicating that the company collects cash from customers before paying suppliers. After mid-2023, the cycle shifted toward positive territory, rising to around 15 days by early 2025. This shift suggests increased time between cash outflows and inflows, potentially affecting liquidity.
Turnover Ratios
Average No. Days
Inventory Turnover
Tesla Inc., inventory turnover calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cost of revenues | 16,182) | 21,528) | 20,185) | 20,922) | 17,605) | 20,729) | 19,172) | 20,394) | 18,818) | 18,541) | 16,072) | 12,700) | 13,296) | 12,872) | 10,097) | 9,074) | 8,174) | 8,678) | 6,708) | 4,769) | 4,751) | |||||||
| Inventory | 13,706) | 12,017) | 14,530) | 14,195) | 16,033) | 13,626) | 13,721) | 14,356) | 14,375) | 12,839) | 10,327) | 8,108) | 6,691) | 5,757) | 5,199) | 4,733) | 4,132) | 4,101) | 4,218) | 4,018) | 4,494) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Inventory turnover1 | 5.75 | 6.68 | 5.47 | 5.53 | 4.86 | 5.81 | 5.61 | 5.14 | 4.60 | 4.72 | 5.32 | 6.04 | 6.78 | 6.99 | 6.93 | 6.89 | 6.86 | 6.07 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 8.78 | 10.60 | 8.77 | 9.04 | 8.18 | 9.62 | 8.05 | 8.15 | 8.64 | 9.55 | 8.48 | 8.92 | 7.81 | 9.50 | 8.54 | 8.57 | 8.75 | 10.43 | — | — | — | |||||||
| General Motors Co. | 9.98 | 10.37 | 8.56 | 8.24 | 8.16 | 8.59 | 7.85 | 7.66 | 7.31 | 8.26 | 7.32 | 6.33 | 7.06 | 7.74 | 7.10 | 8.38 | 7.95 | 9.53 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Inventory turnover
= (Cost of revenuesQ1 2025
+ Cost of revenuesQ4 2024
+ Cost of revenuesQ3 2024
+ Cost of revenuesQ2 2024)
÷ Inventory
= (16,182 + 21,528 + 20,185 + 20,922)
÷ 13,706 = 5.75
2 Click competitor name to see calculations.
The cost of revenues over the examined periods exhibits a generally increasing trend from early 2020 to the end of 2024, with fluctuations in certain quarters. Starting from a value of approximately 4,751 million USD in March 2020, the cost rises steadily through 2021 and 2022, reaching a peak of around 20,729 million USD in June 2024. However, the final quarter of 2024 shows a notable decline to 16,182 million USD. This indicates a considerable growth in expenses related to goods sold or services provided, reflecting possibly expansion or increased production costs, followed by some reduction in late 2024.
Inventory levels also demonstrate an overall upward movement during the same timeframe, beginning at 4,494 million USD in March 2020 and peaking at 14,530 million USD in September 2024. The increase is relatively consistent, although there are periods of stabilization and slight decreases, such as from September 2023 to March 2024. The inventory accumulation suggests either stockpiling in response to anticipated demand or slower turnover rates impacting inventory clearance.
The inventory turnover ratio, available from September 2020 onwards, displays an initial rising trend, climbing from 6.07 to a high of 6.99 by December 2021. Following this peak, the ratio declines steadily through 2022 and into the first half of 2023, reaching a low of 4.6 in March 2023. Subsequently, some recovery appears, with the ratio fluctuating between approximately 5.1 and 6.7 in late 2023 and 2024. These dynamics suggest variability in the efficiency of inventory management. The early increase indicates faster movement and sales of inventory, while the later decrease points to slower turnover, potentially due to increased stocking or reduced sales velocity, with partial improvements thereafter.
In summary, the data reveals significant growth in both cost of revenues and inventory levels over the years, while the inventory turnover ratio reflects periods of varying effectiveness in inventory utilization. The decline in cost of revenues towards the end of 2024 combined with stabilized inventory and an improved turnover ratio may point to efforts in optimizing production costs and inventory management in the most recent period.
- Cost of Revenues
- Increased substantially from 4,751 million USD in early 2020 to peaks exceeding 20,000 million USD in mid-2024, with a notable decrease in the final quarter of 2024.
- Inventory
- Showed consistent growth from 4,494 million USD in March 2020 to a peak of over 14,500 million USD in late 2024, with minor fluctuations suggestive of stock adjustments or demand changes.
- Inventory Turnover Ratio
- Ranged between 4.6 and 6.99 during the measured quarters, indicating varying efficiency in inventory usage, with early growth followed by decline and partial recovery in later quarters.
Receivables Turnover
Tesla Inc., receivables turnover calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Revenues | 19,335) | 25,707) | 25,182) | 25,500) | 21,301) | 25,167) | 23,350) | 24,927) | 23,329) | 24,318) | 21,454) | 16,934) | 18,756) | 17,719) | 13,757) | 11,958) | 10,389) | 10,744) | 8,771) | 6,036) | 5,985) | |||||||
| Accounts receivable, net | 3,782) | 4,418) | 3,313) | 3,737) | 3,887) | 3,508) | 2,520) | 3,447) | 2,993) | 2,952) | 2,192) | 2,081) | 2,311) | 1,913) | 1,962) | 2,129) | 1,890) | 1,886) | 1,757) | 1,485) | 1,274) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Receivables turnover1 | 25.31 | 22.11 | 29.32 | 25.51 | 24.37 | 27.59 | 38.07 | 27.28 | 28.75 | 27.60 | 34.15 | 32.28 | 26.91 | 28.14 | 23.88 | 19.66 | 19.02 | 16.72 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 9.88 | 11.73 | 10.38 | 10.06 | 8.92 | 10.63 | 10.87 | 11.08 | 10.45 | 9.48 | 9.66 | 9.22 | 9.58 | 11.11 | 11.45 | 14.36 | 11.31 | 11.60 | — | — | — | |||||||
| General Motors Co. | 11.53 | 13.38 | 12.14 | 12.16 | 11.63 | 12.74 | 11.36 | 11.12 | 10.79 | 10.80 | 9.59 | 9.60 | 9.82 | 15.36 | 14.50 | 15.42 | 11.90 | 13.52 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Receivables turnover
= (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
÷ Accounts receivable, net
= (19,335 + 25,707 + 25,182 + 25,500)
÷ 3,782 = 25.31
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends in revenue, accounts receivable, and receivables turnover over the observed periods.
- Revenues (US$ in millions)
- Revenues exhibited a generally increasing trend from March 2020 through December 2024, with fluctuations in some quarters. Starting at approximately 5,985 million USD in the first quarter of 2020, revenues surged significantly by the end of 2021, peaking at around 25,167 million USD in December 2023. Despite some quarters showing declines or plateauing, such as a dip in March 2025 to approximately 19,335 million USD, the overall pattern indicates strong growth over the period.
- Accounts Receivable, Net (US$ in millions)
- Accounts receivable followed a generally increasing trajectory from 1,274 million USD in the first quarter of 2020 to a high of 4,418 million USD in March 2025. There were some fluctuations within quarters, for example, a noticeable decrease in September 2023 compared to June 2023, but overall the balance trended upward, indicating a growing amount of credit sales or outstanding customer balances over time. The increases in receivables roughly correlated with periods of increased revenue.
- Receivables Turnover (ratio)
- The receivables turnover ratio, reported only from September 2020 onward, shows variability with some peaks and troughs. Initially rising from 16.72 to a high of 38.07 in December 2023, the turnover ratio indicates improvements in the company's efficiency in collecting receivables during this period. However, in 2024 and early 2025, the ratio exhibits a decline to as low as 22.11 in March 2025, suggesting slower collections or changes in credit terms during the most recent periods.
Overall, the financial data points to a consistent increase in revenue and accounts receivable, with fluctuations in collection efficiency as reflected in the receivables turnover ratio. The strong revenue growth alongside rising receivables may highlight expanding sales volume and credit activity, with some recent softness in receivables management efficiency suggested by the declining turnover ratio in the latest quarters.
Payables Turnover
Tesla Inc., payables turnover calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cost of revenues | 16,182) | 21,528) | 20,185) | 20,922) | 17,605) | 20,729) | 19,172) | 20,394) | 18,818) | 18,541) | 16,072) | 12,700) | 13,296) | 12,872) | 10,097) | 9,074) | 8,174) | 8,678) | 6,708) | 4,769) | 4,751) | |||||||
| Accounts payable | 13,471) | 12,474) | 14,654) | 13,056) | 14,725) | 14,431) | 13,937) | 15,273) | 15,904) | 15,255) | 13,897) | 11,212) | 11,171) | 10,025) | 8,260) | 7,558) | 6,648) | 6,051) | 4,958) | 3,638) | 3,970) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Payables turnover1 | 5.85 | 6.43 | 5.42 | 6.01 | 5.29 | 5.48 | 5.52 | 4.83 | 4.16 | 3.97 | 3.95 | 4.37 | 4.06 | 4.01 | 4.36 | 4.32 | 4.26 | 4.12 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 5.98 | 6.57 | 5.76 | 6.10 | 5.56 | 5.79 | 5.30 | 5.20 | 5.38 | 5.25 | 4.77 | 5.33 | 4.92 | 5.13 | 5.03 | 6.27 | 4.75 | 5.08 | — | — | — | |||||||
| General Motors Co. | 5.65 | 5.88 | 5.00 | 5.04 | 4.87 | 5.03 | 4.58 | 4.60 | 4.49 | 4.62 | 4.46 | 4.12 | 4.15 | 4.93 | 5.54 | 5.12 | 4.69 | 4.89 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Payables turnover
= (Cost of revenuesQ1 2025
+ Cost of revenuesQ4 2024
+ Cost of revenuesQ3 2024
+ Cost of revenuesQ2 2024)
÷ Accounts payable
= (16,182 + 21,528 + 20,185 + 20,922)
÷ 13,471 = 5.85
2 Click competitor name to see calculations.
The cost of revenues demonstrates a generally upward trend from March 31, 2020, reaching its peak around December 31, 2023, before experiencing noticeable fluctuations through to March 31, 2025. Starting at 4,751 million USD in early 2020, the cost rose considerably, peaking at 20,729 million USD in June 30, 2024, and then decreased significantly to 16,182 million USD by March 31, 2025. This indicates periods of both expansion and contraction in cost structures over the timeline.
Accounts payable also exhibit an increasing trend but with some volatility. From 3,970 million USD at the end of Q1 2020, accounts payable rose steadily and reached a high of 16,254 million USD in December 31, 2023, before declining to 13,471 million USD in the first quarter of 2025. The overall increase suggests an extension in credit terms or a buildup in liabilities, while the later decline could indicate improved payment management or reduced purchasing activity.
The payables turnover ratio, reflecting how often payables are settled within a period, started with values around 4.12 to 4.36 in late 2020 and early 2021, indicating moderate frequency in payment cycles. Over time, this ratio increased substantially, reaching above 6.00 several times between 2023 and 2025, with a peak of 6.43 at September 30, 2024. The rising payables turnover ratio suggests an acceleration in payment to suppliers, pointing to improved liquidity or tighter creditor payment policies.
In summary, the financial data portray a scenario of rising costs and liabilities linked with accounts payable from 2020 through 2023, followed by a period of correction or adjustment. Concurrently, the enhanced payables turnover ratio towards the later periods points to more efficient or expedited settlement of obligations, which could reflect changes in working capital management or operational cash flow strategies.
- Cost of Revenues
- Trend shows a steady increase until late 2023, peaking at over 20 billion USD, followed by volatility and a decrease by early 2025.
- Accounts Payable
- Displayed a general growth pattern with some swings, rising from just under 4 billion USD to above 15 billion USD, then declining towards the end of the period.
- Payables Turnover Ratio
- Increased from just over 4 to a peak of 6.43, indicating quicker payment cycles towards the end of the observed timeline.
Working Capital Turnover
Tesla Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 59,389) | 58,360) | 56,379) | 52,977) | 50,535) | 49,616) | 45,026) | 43,875) | 42,997) | 40,917) | 35,990) | 31,222) | 29,050) | 27,100) | 25,002) | 24,693) | 24,705) | 26,717) | 21,744) | 15,336) | 14,893) | |||||||
| Less: Current liabilities | 29,753) | 28,821) | 30,577) | 27,729) | 29,453) | 28,748) | 26,640) | 27,592) | 27,436) | 26,709) | 24,611) | 21,821) | 21,455) | 19,705) | 18,051) | 16,371) | 14,877) | 14,248) | 13,302) | 12,270) | 11,986) | |||||||
| Working capital | 29,636) | 29,539) | 25,802) | 25,248) | 21,082) | 20,868) | 18,386) | 16,283) | 15,561) | 14,208) | 11,379) | 9,401) | 7,595) | 7,395) | 6,951) | 8,322) | 9,828) | 12,469) | 8,442) | 3,066) | 2,907) | |||||||
| Revenues | 19,335) | 25,707) | 25,182) | 25,500) | 21,301) | 25,167) | 23,350) | 24,927) | 23,329) | 24,318) | 21,454) | 16,934) | 18,756) | 17,719) | 13,757) | 11,958) | 10,389) | 10,744) | 8,771) | 6,036) | 5,985) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Working capital turnover1 | 3.23 | 3.31 | 3.77 | 3.78 | 4.49 | 4.64 | 5.22 | 5.77 | 5.53 | 5.73 | 6.58 | 7.14 | 8.19 | 7.28 | 6.74 | 5.03 | 3.66 | 2.53 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 11.89 | 9.80 | 10.64 | 9.88 | 9.59 | 8.32 | 7.80 | 7.75 | 8.12 | 7.60 | 7.96 | 9.89 | 7.91 | 6.91 | 6.92 | 7.06 | 6.00 | 5.93 | — | — | — | |||||||
| General Motors Co. | 8.94 | 13.97 | 8.38 | 9.76 | 10.90 | 21.98 | 11.38 | 11.11 | 17.09 | 15.52 | 10.96 | 10.19 | 12.98 | 14.76 | 20.09 | 16.15 | 18.83 | 107.17 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Working capital turnover
= (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
÷ Working capital
= (19,335 + 25,707 + 25,182 + 25,500)
÷ 29,636 = 3.23
2 Click competitor name to see calculations.
The working capital exhibits a general upward trend over the observed periods. Starting at 2,907 million USD in the first quarter of 2020, it increased significantly to 12,469 million USD by the end of 2020. Although there is some fluctuation thereafter, the overall trend remains positive, reaching a peak of 29,636 million USD in the first quarter of 2025. This steady growth suggests a strengthening in the company’s ability to cover its short-term liabilities with short-term assets.
Revenues demonstrate a more variable pattern across the quarters. Initial values start at 5,985 million USD in the first quarter of 2020, rising consistently to 17,719 million USD by the fourth quarter of 2021. Following this period, revenue experiences fluctuations with peaks at various points, such as 25,707 million USD in late 2024, and notable decreases in several quarters, ending at 19,335 million USD in the first quarter of 2025. These fluctuations may reflect seasonality, market conditions, or operational changes impacting the company’s sales performance.
The working capital turnover ratio shows a marked increase from 2.53 in the third quarter of 2020 to a high of 8.19 in the second quarter of 2022. After this peak, the ratio declines gradually, settling near 3.23 by the first quarter of 2025. The initial rise indicates improved efficiency in utilizing working capital to generate revenues, but the subsequent decline may signify a decrease in efficiency or a strategic shift toward holding higher levels of working capital relative to sales.
- Working Capital
- Consistent growth, more than tenfold increase from early 2020 to early 2025, indicating enhanced liquidity and possibly expanded operational scale.
- Revenues
- Marked increase until late 2021, followed by cyclical fluctuations, with some quarters showing revenue declines, implying variable market demand or operational challenges.
- Working Capital Turnover
- Strong improvement in early periods reflecting better asset utilization, with a peak in mid-2022; followed by a steady decrease suggesting reduced sales efficiency relative to working capital held.
Overall, while working capital growth supports financial stability, the fluctuating revenues and decreasing turnover ratio in recent periods may require attention to operational efficiency and market positioning strategies to ensure sustained profitability and capital utilization effectiveness.
Average Inventory Processing Period
Tesla Inc., average inventory processing period calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Inventory turnover | 5.75 | 6.68 | 5.47 | 5.53 | 4.86 | 5.81 | 5.61 | 5.14 | 4.60 | 4.72 | 5.32 | 6.04 | 6.78 | 6.99 | 6.93 | 6.89 | 6.86 | 6.07 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average inventory processing period1 | 63 | 55 | 67 | 66 | 75 | 63 | 65 | 71 | 79 | 77 | 69 | 60 | 54 | 52 | 53 | 53 | 53 | 60 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 42 | 34 | 42 | 40 | 45 | 38 | 45 | 45 | 42 | 38 | 43 | 41 | 47 | 38 | 43 | 43 | 42 | 35 | — | — | — | |||||||
| General Motors Co. | 37 | 35 | 43 | 44 | 45 | 43 | 46 | 48 | 50 | 44 | 50 | 58 | 52 | 47 | 51 | 44 | 46 | 38 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.75 = 63
2 Click competitor name to see calculations.
The inventory turnover ratio displays a fluctuating trend from March 31, 2020, to March 31, 2025. It starts at 6.07 in the first recorded quarter of 2020 and gradually increases to reach a peak of 6.99 by March 31, 2022. Following this peak, the turnover ratio decreases noticeably to a low of 4.6 around the middle of 2023. Subsequently, the ratio recovers moderately, with values moving upward to 6.68 by the end of 2024 before settling at 5.75 in the first quarter of 2025. This pattern suggests periods of varying inventory management effectiveness or changes in sales velocity over time.
Conversely, the average inventory processing period demonstrates an inverse relationship to the inventory turnover ratio, as expected. Initially, the inventory processing period decreases from 60 days in early 2020 to 52 days by March 31, 2022, indicating improved efficiency in inventory handling. After this date, the period increases, peaking at 79 days in late 2023, which coincides with the lowest points in the inventory turnover ratio. Following the peak, the period reduces again to 55 days by September 30, 2024, before a slight increase to 63 days at the start of 2025. These movements reflect fluctuations in the time inventory stays within operations, possibly influenced by demand variations or supply chain adjustments.
- Inventory Turnover Ratio
- Shows an overall volatile pattern with an initial improvement phase, a decline around mid-2023, and a partial recovery towards 2024 end.
- Average Inventory Processing Period
- Exhibits an inverse trend relative to the turnover ratio, indicating periods of quicker inventory processing followed by slower turnover intervals later in the timeline.
- Insights
- The data implies that inventory management experienced phases of enhanced and reduced efficiency, likely affected by internal operational factors or external market conditions. The inverse movement between the turnover ratio and processing period aligns with typical inventory cycle dynamics.
Average Receivable Collection Period
Tesla Inc., average receivable collection period calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Receivables turnover | 25.31 | 22.11 | 29.32 | 25.51 | 24.37 | 27.59 | 38.07 | 27.28 | 28.75 | 27.60 | 34.15 | 32.28 | 26.91 | 28.14 | 23.88 | 19.66 | 19.02 | 16.72 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average receivable collection period1 | 14 | 17 | 12 | 14 | 15 | 13 | 10 | 13 | 13 | 13 | 11 | 11 | 14 | 13 | 15 | 19 | 19 | 22 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 37 | 31 | 35 | 36 | 41 | 34 | 34 | 33 | 35 | 39 | 38 | 40 | 38 | 33 | 32 | 25 | 32 | 31 | — | — | — | |||||||
| General Motors Co. | 32 | 27 | 30 | 30 | 31 | 29 | 32 | 33 | 34 | 34 | 38 | 38 | 37 | 24 | 25 | 24 | 31 | 27 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 25.31 = 14
2 Click competitor name to see calculations.
The analysis of the receivables turnover ratio over the observed periods reveals a generally increasing trend, indicating an improvement in the efficiency with which the company collects its receivables. Starting from a value of 16.72 in the earlier observable period, the ratio rises significantly, peaking at 38.07 before experiencing some fluctuations towards the later dates. Despite these fluctuations, the turnover ratio remains higher compared to the initial levels, suggesting a strengthened collection process overall.
Correspondingly, the average receivable collection period, expressed in days, shows an inverse relationship to the receivables turnover. The collection period decreases from 22 days in the earliest period noted, reaching a low of 10 days during the timeline, which aligns with the peak in receivables turnover. This decline in days indicates faster collection of receivables, which is generally favorable for cash flow management.
In the latter stages, there is a slight increase in the average collection period, moving back up to a range between 12 and 17 days. This coincides with the period when the receivables turnover ratio experiences some volatility and decreases from its peak. Although the collection period rises, it remains below the earliest recorded values, maintaining a comparatively efficient receivables process.
Overall, the data indicates that the company enhanced its receivables management over time, achieving faster collections and improved turnover ratios. The recent minor regressions suggest potential challenges or changes in credit policies or customer payment behaviors that could merit further investigation to sustain the strengthened receivables process.
- Receivables Turnover Ratio
- Shows a rising trend from 16.72 to a peak of 38.07, with subsequent fluctuations but maintaining a higher level than initial periods.
- Average Receivable Collection Period
- Declines from 22 days to a low of 10 days, indicating faster collections, but slightly increases later, ranging between 12 and 17 days.
Operating Cycle
Tesla Inc., operating cycle calculation (quarterly data)
No. days
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Average inventory processing period | 63 | 55 | 67 | 66 | 75 | 63 | 65 | 71 | 79 | 77 | 69 | 60 | 54 | 52 | 53 | 53 | 53 | 60 | — | — | — | |||||||
| Average receivable collection period | 14 | 17 | 12 | 14 | 15 | 13 | 10 | 13 | 13 | 13 | 11 | 11 | 14 | 13 | 15 | 19 | 19 | 22 | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Operating cycle1 | 77 | 72 | 79 | 80 | 90 | 76 | 75 | 84 | 92 | 90 | 80 | 71 | 68 | 65 | 68 | 72 | 72 | 82 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 79 | 65 | 77 | 76 | 86 | 72 | 79 | 78 | 77 | 77 | 81 | 81 | 85 | 71 | 75 | 68 | 74 | 66 | — | — | — | |||||||
| General Motors Co. | 69 | 62 | 73 | 74 | 76 | 72 | 78 | 81 | 84 | 78 | 88 | 96 | 89 | 71 | 76 | 68 | 77 | 65 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 63 + 14 = 77
2 Click competitor name to see calculations.
- Average inventory processing period
- The average inventory processing period exhibits a fluctuating pattern over the observed quarters. Beginning with data available from March 31, 2020, the period starts at 60 days, then declines to 53 days in the following quarters through the end of 2021. During 2022, the period increases steadily, peaking at 79 days in September 2023 before gradually declining again to 55 days by September 2024. The latest data point for March 31, 2025, shows a slight increase to 63 days. This trend suggests cyclical variations in inventory turnover efficiency, with a notable elongation in the middle quarters followed by improvement toward the end of the timeline.
- Average receivable collection period
- The average receivable collection period reveals an overall decreasing trend from March 31, 2020, through mid-2023, falling from 22 days down to as low as 10 days in March 2023, indicating accelerated collection of receivables. However, post-March 2023, the period experiences a modest increase and some volatility, fluctuating between 12 and 17 days through March 31, 2025. This pattern reflects an initial improvement in cash collection efficiency followed by some easing, potentially due to changes in credit terms or customer payment behaviors in recent periods.
- Operating cycle
- The operating cycle mirrors the combined effects observed in inventory processing and receivables collection periods. Initially, it decreases from 82 days in March 2020 to 65 days by March 2021, indicating improved operational efficiency. Subsequently, it rises again, peaking near 92 days in September 2023, followed by a decline to 72 days by September 2024. The final recorded value as of March 31, 2025, stands at 77 days. This oscillating behavior suggests periods of extended capital tied in operations interspersed with phases of tighter working capital management.
Average Payables Payment Period
Tesla Inc., average payables payment period calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Payables turnover | 5.85 | 6.43 | 5.42 | 6.01 | 5.29 | 5.48 | 5.52 | 4.83 | 4.16 | 3.97 | 3.95 | 4.37 | 4.06 | 4.01 | 4.36 | 4.32 | 4.26 | 4.12 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average payables payment period1 | 62 | 57 | 67 | 61 | 69 | 67 | 66 | 76 | 88 | 92 | 92 | 84 | 90 | 91 | 84 | 85 | 86 | 89 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 61 | 56 | 63 | 60 | 66 | 63 | 69 | 70 | 68 | 70 | 77 | 68 | 74 | 71 | 73 | 58 | 77 | 72 | — | — | — | |||||||
| General Motors Co. | 65 | 62 | 73 | 72 | 75 | 73 | 80 | 79 | 81 | 79 | 82 | 89 | 88 | 74 | 66 | 71 | 78 | 75 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.85 = 62
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio and the average payables payment period over the observed periods reveals several important trends and shifts in the company's management of its accounts payable.
- Payables turnover ratio
-
The ratio data begins from December 2020, showing a generally increasing trend throughout the periods. Initially, the ratio was 4.12, gradually rising to 4.36 by the end of 2020. The ratio slightly fluctuated around the low 4s range in 2021 and early 2022 but showed a sustained upward movement starting in mid-2023. By December 2024, the ratio peaks at 6.43, representing a significant increase compared to earlier periods. This trend indicates an acceleration in the rate at which the company pays off its suppliers.
- Average payables payment period (number of days)
-
This metric inversely mirrors the payables turnover trend, showing the length of time the company takes to pay its suppliers. Starting at 89 days in December 2020, the payment period slightly decreased to the mid-80s range during 2021, reflecting quicker payments. In early 2022, there was a brief increase back to the low 90s before a steady decline began. From mid-2023 onward, the payment period notably shortened, reaching as low as 57 days in September 2024, before slightly fluctuating around the 60-day mark towards March 2025. This reduction aligns with the increase in payables turnover, confirming a trend toward faster payment to suppliers.
- Overall insights
-
The data indicates a strategic improvement in working capital management regarding accounts payable. The company has enhanced its efficiency in settling payables, as evidenced by the increased turnover ratio and shortened payment days. Such improvements can positively affect supplier relationships and may help in negotiating better terms or discounts. The trend from mid-2023 suggests a deliberate operational decision to accelerate payments, possibly to support supply chain stability or improve financial reporting metrics.
Cash Conversion Cycle
Tesla Inc., cash conversion cycle calculation (quarterly data)
No. days
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Average inventory processing period | 63 | 55 | 67 | 66 | 75 | 63 | 65 | 71 | 79 | 77 | 69 | 60 | 54 | 52 | 53 | 53 | 53 | 60 | — | — | — | |||||||
| Average receivable collection period | 14 | 17 | 12 | 14 | 15 | 13 | 10 | 13 | 13 | 13 | 11 | 11 | 14 | 13 | 15 | 19 | 19 | 22 | — | — | — | |||||||
| Average payables payment period | 62 | 57 | 67 | 61 | 69 | 67 | 66 | 76 | 88 | 92 | 92 | 84 | 90 | 91 | 84 | 85 | 86 | 89 | — | — | — | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Cash conversion cycle1 | 15 | 15 | 12 | 19 | 21 | 9 | 9 | 8 | 4 | -2 | -12 | -13 | -22 | -26 | -16 | -13 | -14 | -7 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 18 | 9 | 14 | 16 | 20 | 9 | 10 | 8 | 9 | 7 | 4 | 13 | 11 | 0 | 2 | 10 | -3 | -6 | — | — | — | |||||||
| General Motors Co. | 4 | 0 | 0 | 2 | 1 | -1 | -2 | 2 | 3 | -1 | 6 | 7 | 1 | -3 | 10 | -3 | -1 | -10 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 63 + 14 – 62 = 15
2 Click competitor name to see calculations.
The data reveals several noteworthy trends in the working capital management over the analyzed periods.
- Average Inventory Processing Period
- This metric remained relatively stable around the low 50s number of days in the early periods, peaking significantly from late 2022 through 2023, reaching up to 79 days. Afterwards, it declined to the mid-60s range, showing some volatility but generally elevated compared to earlier years.
- Average Receivable Collection Period
- The receivable collection period demonstrated a gradual downward trend from the earlier data points, starting around the low 20s and declining to a range between 10 and 15 days in the subsequent periods. While minor fluctuations occurred, the overall trend suggests improved efficiency in receivables collection compared to earlier years.
- Average Payables Payment Period
- The payables payment period showed variability, initially remaining high in the mid-to-upper 80s number of days. A declining trend became visible starting around 2022, dropping to the high 50s and low 60s by late 2024, indicating a tendency toward faster payment of obligations in recent periods.
- Cash Conversion Cycle
- The cash conversion cycle exhibited a consistent negative trend in the earlier quarters, hitting lows of approximately -26 days, indicative of a favorable scenario where payables exceeded the sum of receivables and inventory days. However, starting from early 2023, this metric shifted towards positive territory, rising steadily to reach values above 15 days, implying a lengthening cash conversion cycle and potentially higher working capital requirements.
Overall, inventory holding periods have increased markedly since 2022, while receivables management has become more efficient. Simultaneously, payables have been settled more quickly in recent periods. These combined factors have led to a reversal of the previously negative cash conversion cycle into a positive one, suggesting a change in working capital dynamics with potentially greater cash tied up in operations over the most recent years.