Microsoft Excel LibreOffice Calc

General Motors Co. (GM)


Analysis of Short-term (Operating) Activity Ratios

Low level of difficulty


Short-term Activity Ratios (Summary)

General Motors Co., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Turnover Ratios
Inventory turnover 12.29 10.77 9.89 9.32 10.12
Receivables turnover 20.32 16.35 16.27 17.50 16.64
Payables turnover 5.41 4.80 5.06 5.33 6.13
Working capital turnover 22.31 8.41
Average No. Days
Average inventory processing period 30 34 37 39 36
Add: Average receivable collection period 18 22 22 21 22
Operating cycle 48 56 59 60 58
Less: Average payables payment period 67 76 72 68 60
Cash conversion cycle -19 -20 -13 -8 -2

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. General Motors Co.’s inventory turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Receivables turnover An activity ratio equal to revenue divided by receivables. General Motors Co.’s receivables turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. General Motors Co.’s payables turnover ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. General Motors Co.’s number of days of payables outstanding increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

General Motors Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Automotive and other cost of sales 120,656  114,869  136,333  128,321  138,082 
Inventories 9,816  10,663  13,788  13,764  13,642 
Short-term Activity Ratio
Inventory turnover1 12.29 10.77 9.89 9.32 10.12
Benchmarks
Inventory Turnover, Competitors2
Ford Motor Co. 12.15 12.78 14.18 14.96 15.70
Inventory Turnover, Sector
Automobiles & Parts 12.21 11.76 11.57 11.45 12.16
Inventory Turnover, Industry
Consumer Goods 7.31 7.18 7.37 7.35 7.53

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Inventory turnover = Automotive and other cost of sales ÷ Inventories
= 120,656 ÷ 9,816 = 12.29

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. General Motors Co.’s inventory turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Receivables Turnover

General Motors Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Automotive net sales and revenue 133,045  133,449  156,849  145,922  151,092 
Accounts and notes receivable, net of allowance 6,549  8,164  9,638  8,337  9,078 
Short-term Activity Ratio
Receivables turnover1 20.32 16.35 16.27 17.50 16.64
Benchmarks
Receivables Turnover, Competitors2
Ford Motor Co. 13.25 13.74 12.75 12.73 11.60
Receivables Turnover, Sector
Automobiles & Parts 15.86 14.88 14.39 14.78 13.80
Receivables Turnover, Industry
Consumer Goods 13.85 13.54 13.71 14.04 12.70

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Receivables turnover = Automotive net sales and revenue ÷ Accounts and notes receivable, net of allowance
= 133,045 ÷ 6,549 = 20.32

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. General Motors Co.’s receivables turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Payables Turnover

General Motors Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Automotive and other cost of sales 120,656  114,869  136,333  128,321  138,082 
Accounts payable, principally trade 22,297  23,929  26,961  24,062  22,529 
Short-term Activity Ratio
Payables turnover1 5.41 4.80 5.06 5.33 6.13
Benchmarks
Payables Turnover, Competitors2
Ford Motor Co. 6.33 5.64 5.93 6.14 6.17
Payables Turnover, Sector
Automobiles & Parts 5.86 5.21 5.44 5.70 6.15
Payables Turnover, Industry
Consumer Goods 5.02 4.80 5.06 5.53 6.05

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Payables turnover = Automotive and other cost of sales ÷ Accounts payable, principally trade
= 120,656 ÷ 22,297 = 5.41

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. General Motors Co.’s payables turnover ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Working Capital Turnover

General Motors Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Current assets 75,293  68,744  76,203  78,007  83,670 
Less: Current liabilities 82,237  76,890  85,181  71,466  65,701 
Working capital (6,944) (8,146) (8,978) 6,541  17,969 
 
Automotive net sales and revenue 133,045  133,449  156,849  145,922  151,092 
Short-term Activity Ratio
Working capital turnover1 22.31 8.41
Benchmarks
Working Capital Turnover, Competitors2
Ford Motor Co. 7.77 6.84 7.79 6.94
Working Capital Turnover, Sector
Automobiles & Parts 23.18 21.21 32.43 10.69
Working Capital Turnover, Industry
Consumer Goods 20.79 23.50 14.31 366.66

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Working capital turnover = Automotive net sales and revenue ÷ Working capital
= 133,045 ÷ -6,944 =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital.

Average Inventory Processing Period

General Motors Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Inventory turnover 12.29 10.77 9.89 9.32 10.12
Short-term Activity Ratio (no. days)
Average inventory processing period1 30 34 37 39 36
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Ford Motor Co. 30 29 26 24 23
Average Inventory Processing Period, Sector
Automobiles & Parts 30 31 32 32 30
Average Inventory Processing Period, Industry
Consumer Goods 50 51 50 50 48

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 12.29 = 30

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

General Motors Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Receivables turnover 20.32 16.35 16.27 17.50 16.64
Short-term Activity Ratio (no. days)
Average receivable collection period1 18 22 22 21 22
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Ford Motor Co. 28 27 29 29 31
Average Receivable Collection Period, Sector
Automobiles & Parts 23 25 25 25 26
Average Receivable Collection Period, Industry
Consumer Goods 26 27 27 26 29

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 20.32 = 18

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

General Motors Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 30 34 37 39 36
Average receivable collection period 18 22 22 21 22
Short-term Activity Ratio
Operating cycle1 48 56 59 60 58
Benchmarks
Operating Cycle, Competitors2
Ford Motor Co. 58 56 55 53 54
Operating Cycle, Sector
Automobiles & Parts 53 56 57 57 56
Operating Cycle, Industry
Consumer Goods 76 78 77 76 77

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 30 + 18 = 48

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

General Motors Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Payables turnover 5.41 4.80 5.06 5.33 6.13
Short-term Activity Ratio (no. days)
Average payables payment period1 67 76 72 68 60
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Ford Motor Co. 58 65 62 59 59
Average Payables Payment Period, Sector
Automobiles & Parts 62 70 67 64 59
Average Payables Payment Period, Industry
Consumer Goods 73 76 72 66 60

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.41 = 67

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. General Motors Co.’s number of days of payables outstanding increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Cash Conversion Cycle

General Motors Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 30 34 37 39 36
Average receivable collection period 18 22 22 21 22
Average payables payment period 67 76 72 68 60
Short-term Activity Ratio
Cash conversion cycle1 -19 -20 -13 -8 -2
Benchmarks
Cash Conversion Cycle, Competitors2
Ford Motor Co. 0 -9 -7 -6 -5
Cash Conversion Cycle, Sector
Automobiles & Parts -9 -14 -10 -7 -3
Cash Conversion Cycle, Industry
Consumer Goods 3 2 5 10 17

Based on: 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07), 10-K (filing date: 2016-02-03), 10-K (filing date: 2015-02-04).

1 2018 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 30 + 1867 = -19

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.