General Motors Co. (NYSE:GM)

Inventory Turnover

The inventory turnover ratio exhibits fluctuations over the reported periods, starting at 7.95 in early 2021, dipping to a low around mid-2022 at 6.33, and gradually increasing thereafter to reach a notable peak of 10.37 by March 2025. This trend suggests an improvement in inventory management efficiency, particularly pronounced from 2023 onward.

Receivables Turnover

Receivables turnover shows considerable variability. After a high of 15.42 in mid-2021, it sharply declined to around 9.6 in mid to late 2022, indicating slower collections during that period. Since then, it has recovered moderately to roughly 12 by late 2023 but trends slightly downward again approaching 9.96 by the last quarter in 2025. This pattern implies cycles of fluctuating collection efficiency.

Payables Turnover

The payables turnover ratio has a generally upward trajectory, moving from 4.69 in early 2021 to approximately 5.7 by 2025. The increases suggest faster payments to suppliers over time, potentially reflecting improved liquidity or changed credit terms with vendors.

Working Capital Turnover

Working capital turnover shows significant oscillations, with the highest value posted at 21.98 in late 2023 followed by a decline to below 8 by late 2025. This volatility may reflect varying levels of working capital utilization and operational intensity, with periods of high turnover indicating efficient use of working capital and the downturns possibly caused by increased capital hold.

Average Inventory Processing Period

The average inventory processing period fluctuates around the mid-to-high 40s in days, with a decrease from 52-58 days in mid-2022 to approximately 35-37 days by late 2024 and early 2025. The reduction indicates an acceleration in inventory turnover, aligning with the upward trend observed in inventory turnover ratios.

Average Receivable Collection Period

This metric increased from the mid-20s in early 2021 to the high 30s by mid-2022, signifying longer collection times. Subsequently, it improved to around 29-31 days but again extended to the mid-to-high 30s by 2025. The fluctuations imply varying efficiency in receivables management over the period.

Operating Cycle

The operating cycle, reflecting the time between inventory acquisition and cash collection, expanded substantially from 77 days in early 2021 to nearly 96 days in mid-2022, then declined to about 62 days in late 2024 before rising again to around 73 days by early 2025. This metric's variability highlights shifts in operational efficiency and cash flow timing.

Average Payables Payment Period

The average payment period to suppliers lengthened from around 66-78 days in early periods to nearly 88-89 days by mid-2022, before shortening steadily to about 64 days by 2025. This trend suggests initial elongation in payment terms or delays switching to faster payment practices later on, possibly as liquidity improved.

Cash Conversion Cycle

The cash conversion cycle fluctuated near zero or negative values from 2021 through 2024, indicating a quick turnaround of cash through the business cycle. However, it began to trend upward in the latest quarters, peaking at 9 days by late 2025. This rise hints at a modest increase in the time capital remains tied up before cash is regained.

Cost of Sales Trends

The automotive and other cost of sales demonstrates a generally upward trajectory over the examined periods. Beginning at approximately 25.1 billion US dollars in the first quarter of 2021, the cost increased with some fluctuations to peak around 39.4 billion in the third quarter of 2025. Notable surges are observed in certain quarters such as Q3 2022 and Q3 2024. Despite intermittent fluctuations, the overall increase signals rising expenses associated with production and operational activities over time.

Inventory Levels

Inventories show a moderate growth trend initially, starting near 12.1 billion US dollars in early 2021 and rising to a peak close to 17.6 billion in mid-2024. However, subsequent quarters reflect some reversals, with inventory values declining to about 15.3 billion by Q3 2025. This pattern suggests cycles of inventory accumulation and reduction possibly correlated with production schedules, demand shifts, or supply chain adjustments.

Inventory Turnover Ratio

The inventory turnover ratio exhibits variability but generally improves over time. After a dip to about 6.3 in mid-2022, the ratio recovers and climbs steadily, reaching values above 10 from Q4 2024 onwards. Higher turnover ratios imply faster inventory movement relative to cost of sales, indicating more efficient inventory management and potentially stronger market demand or optimized supply chain processes in the latter periods.

Integrated Insights

The increase in cost of sales alongside rising inventory values initially might indicate growing production and stockpiling. However, the later period’s increase in inventory turnover ratio combined with stabilizing or slightly declining inventory levels, despite continued growth in sales costs, suggests enhanced operational efficiency. The company appears to be managing inventory more effectively, reducing holding periods while still supporting higher sales volumes.

Automotive Net Sales and Revenue

The automotive net sales and revenue demonstrate a fluctuating yet generally upward trend over the reported periods. Starting at approximately $29 billion in the first quarter of 2021, revenues experienced a notable dip in the third quarter of 2021 to around $23 billion, followed by a robust recovery peaking near $44.7 billion in the third quarter of 2024. The revenue shows some degree of seasonality with occasional declines in the first quarters, as well as some volatility in the final quarters of each year. Despite these fluctuations, the overall trajectory from 2021 through 2025 is positive, indicating growth in automotive sales and revenue.

Accounts and Notes Receivable, Net of Allowance

Accounts and notes receivable net balances reflect an increasing trend over the analysed quarters. Beginning just above $9 billion in early 2021, the figures declined until the end of 2021, reaching a low about $7.4 billion before rising significantly, surpassing $17 billion by late 2025. This growth in receivables correlates with the increase in revenues, suggesting higher credit sales or extended terms to customers. The data reveals intermittent quarterly declines, but overall, there is a clear upward pattern, highlighting growing amounts receivable on the balance sheet.

Receivables Turnover Ratio

The receivables turnover shows a declining trend from an initial high of 15.42 in mid-2021 down to levels below 10 by the third quarter of 2025. This ratio, which measures how efficiently receivables are collected, indicates a slowdown in turnover speed over time. Early periods show stronger turnover, suggesting faster collection activities, while later periods indicate a more extended collection period. The declining turnover rate, in the context of increasing receivables, suggests either more lenient credit terms or slower customer payments, which could impact liquidity.

Overall Insights

The financial data reveals growth in both sales revenue and accounts receivable balances, alongside a declining efficiency in receivables collection. The increase in revenue is a positive indicator of sales performance, but the paralleling rise in receivables paired with a decreasing turnover ratio may suggest emerging collection challenges. The company may need to monitor its credit policies and accounts receivable management to maintain cash flow and avoid potential liquidity issues. Additionally, the observed seasonal and quarterly fluctuations in revenues suggest variable business cycles, which should be accounted for in future financial planning and forecasting.

The financial data exhibits notable trends in cost of sales, accounts payable, and payables turnover over the analyzed periods. The cost of sales for automotive and other segments demonstrates a generally upward trajectory, with fluctuations in certain quarters. Beginning with a value of approximately 25.1 billion USD in the first quarter of 2021, it peaks around the fourth quarter of 2025 nearing 41.9 billion USD. This increase suggests escalating production or procurement expenses over time, possibly linked to expanded operations or rising input costs.

Accounts payable, principally trade, also shows growth over the same period. Starting from about 20.4 billion USD in early 2021, it increases to approximately 27.3 billion USD by the third quarter of 2025. Despite mild volatility, the general trend is upward, indicating the company is managing higher outstanding liabilities to suppliers, consistent with increased cost of sales. This could imply extended payment terms or increased purchasing volume.

The payables turnover ratio fluctuates within a range roughly between 4.1 and 5.9, without a definitive upward or downward long-term trend. Early 2021 shows a ratio near 4.7, with some dips and peaks throughout subsequent quarters. A notable rise occurs around late 2024 and early 2025, reaching the highest points near 5.7. This ratio reflects how many times the company pays off its accounts payable during a period. The variability suggests alterations in payment policies or changes in supplier payment terms across different quarters.

Overall, the rising cost of sales and accounts payable values imply expanding business activity or inflationary pressures. The relatively stable yet oscillating payables turnover ratio suggests the company periodically adjusts its payment practices, potentially balancing cash flow management and supplier relationships. No abrupt or irregular deviations are apparent, indicating steady operational patterns with gradual growth in financial scale.

Cost of Sales

Consistent increase from about 25.1 billion USD (Q1 2021) to approximately 41.9 billion USD (Q3 2025), with periodic fluctuations indicating growing operational costs.

Accounts Payable

Growth from around 20.4 billion USD (Q1 2021) to 27.3 billion USD (Q3 2025), reflecting higher supplier obligations consistent with increased procurement or extended payment terms.

Payables Turnover Ratio

Fluctuates between roughly 4.1 and 5.9 over the period, with a mild upward trend towards the end, indicating variable payment speeds and evolving supplier payment practices.

The working capital demonstrates significant fluctuations over the observed periods, ranging from a low of 5,768 million USD to a high of 21,341 million USD. The general pattern indicates cyclical movements with peaks typically occurring at the end of calendar years and troughs often in the middle of the year, although the magnitude of these changes varies. Notably, there is a substantial increase in working capital starting from the second quarter of 2023, reaching a peak in the third quarter of 2024 before receding somewhat by the end of 2025.

Automotive net sales and revenue exhibit a generally upward trajectory with some quarter-to-quarter variability. The values begin at approximately 29,067 million USD in the first quarter of 2021 and rise to over 44,000 million USD by the third quarter of 2024, followed by a slight decline in late 2024 and 2025 quarters. Sales demonstrated both significant quarterly growth in mid-2022 through early 2024 as well as periods of contraction, suggesting seasonal or market-driven influences on revenue.

The working capital turnover ratio, which reflects the efficiency in using working capital to generate sales, shows notable oscillations. It ranges from a high of approximately 21.98 to a low near 7.99, generally trending downward from early 2023 onwards. The higher turnover ratios correspond to periods of relatively lower working capital and stable sales, indicating increased efficiency. Conversely, lower turnover ratios during periods of high working capital suggest diminished efficiency in capital use relative to sales.

Trends and Insights

1. The inverse relationship between working capital and working capital turnover is evident; as working capital increases substantially, turnover tends to decline, signaling potential overinvestment in current assets or inventory buildup.

2. Net sales and revenue have shown resilience and growth, reflecting demand strength or pricing power, despite some quarter-over-quarter volatility.

3. Periods of rising automotive revenue accompanied by stable or decreasing working capital turnover may imply that asset management needs optimization to maintain or improve operational efficiency.

4. Seasonal or cyclical patterns are implied by recurring changes in working capital and revenue figures, suggesting careful cash and inventory management is critical around these periods.

Inventory Turnover

The inventory turnover ratio exhibits fluctuations throughout the observed periods. Initially, it starts at 7.95 and experiences minor variations until the end of 2021, where it slightly decreases and then stabilizes around mid-7 to 8 range. From early 2022 to the end of 2023, the ratio shows a mild increase, peaking at 8.59 in December 2023.

From 2024 onwards, a noticeable upward trend is evident, with ratios consistently above 8 and reaching a peak of 10.37 in December 2024. This elevated level persists into 2025, indicating improved efficiency in inventory management relative to sales or usage.

Average Inventory Processing Period

The average inventory processing period, measured in days, inversely correlates with the inventory turnover ratio. The figure starts at 46 days and fluctuates between approximately 43 and 58 days in the earlier periods.

Notably, the period elongates to a peak of 58 days in mid-2022, suggesting slower inventory movement during that quarter. After this peak, a declining trend begins, reducing to the low 40s and eventually dropping sharply to the mid-30s by the end of 2024.

This reduction continues into 2025, stabilizing around 36-37 days, reflecting a faster inventory processing cycle and improved operational efficiency.

Overall Analysis

The data reflects an improvement in inventory management starting in late 2023, continuing strongly through 2024 and 2025. The increase in inventory turnover ratio alongside the corresponding decrease in the average inventory processing period suggests enhanced inventory velocity and potentially better alignment between inventory levels and sales demand.

The period of higher inventory processing days in mid-2022 may indicate supply chain disruptions or inventory accumulation, which the company appears to have resolved by late 2023. Sustained improvements in these metrics can contribute positively to liquidity and profitability by reducing holding costs and obsolescence risks.

Receivables turnover

The receivables turnover ratio experienced considerable fluctuations over the observed periods. Initially, it showed a rising trend from 11.9 to 15.42, reaching a peak in the middle of 2021. However, from that point, the ratio significantly declined to below 10 by early 2022, suggesting a slowdown in the frequency of collections. Thereafter, there was a gradual recovery, with the ratio steadily increasing from 10.79 in March 2023 to reach 13.38 by December 2024. In the most recent quarters, however, the ratio again declined to under 10 by the third quarter of 2025, indicating a potential weakening in receivables management or delayed collections.

Average receivable collection period

The trend inversely mirrors that of the receivables turnover, as expected. The average collection period initially shortened from 31 days in March 2021 to a low of 24 days by the third quarter of 2021. Subsequently, it lengthened sharply, peaking at approximately 38 days during mid-2022, implying slower customer payments during that period. From late 2022 through late 2024, the collection period fluctuated but generally improved, declining to around 27 days in December 2024, reflecting enhanced efficiency in collections. However, the most recent data from early to mid-2025 shows the collection period lengthening again to 37 days, which could suggest emerging challenges in cash flow related to receivables.

Overall insights

The alternating trends in receivables turnover and collection period throughout the periods suggest variability in credit management and customer payment behavior. The initial improvements in turnover and reduced collection days imply strengthened collection processes or favorable payment patterns, whereas the mid-term deterioration hints at challenges possibly stemming from market conditions or internal factors affecting credit control. The partial recovery followed by a recent decline underscores the need for continuous monitoring and potential adjustments to credit policies to maintain optimal liquidity and operational efficiency.

The financial data reveals key trends in the company’s working capital management over multiple quarters, focusing on inventory turnover, receivables collection, and the overall operating cycle.

Average Inventory Processing Period

The inventory processing period exhibits fluctuations within a range generally between 35 and 58 days. Starting at 46 days in early 2021, it peaks near 58 days mid-2022 before declining steadily to 35 days by the end of 2024. The period mostly decreases gradually in 2024 and into 2025, implying enhanced inventory turnover efficiency and possibly improved inventory management or faster production cycles.

Average Receivable Collection Period

The receivable collection period shows some volatility without a clear consistent trend over the entire timeline. It initially decreases from 31 days in early 2021 to around 24–25 days mid-2021, then rises sharply to near 38 days in 2022. It fluctuates around the low 30s from late 2022 through 2024, ending with an increase to 37 days in late 2025. This pattern suggests intermittent variability in accounts receivable management effectiveness, with notable lengthening in collection times during some periods.

Operating Cycle

The operating cycle, which combines both inventory and receivables periods, shows parallel dynamics. Beginning at 77 days in early 2021, it fluctuates upward to a peak of 96 days mid-2022, followed by a gradual decline reaching 62 days by late 2024. The subsequent period shows a modest increase again to the low 70s in 2025. These movements reveal that the company experienced some elongation in its cash conversion cycle during 2022 but made subsequent improvements to reduce it, thereby potentially enhancing liquidity and operational efficiency.

Overall, the company’s working capital metrics reflect periods of increased operational duration primarily in 2022, with subsequent improvements, especially in inventory management, contributing to a shorter operating cycle toward the end of the observed period. The variability in receivable collection days suggests ongoing challenges or changing credit policies that may require attention to stabilize cash inflows. The trend toward a reduced operating cycle generally indicates stronger cash flow management and efficiency gains in recent quarters.

Payables Turnover Ratio

The payables turnover ratio exhibits fluctuations over the observed periods, initially increasing from 4.69 to 5.54 between March and September 2021, followed by a decline to approximately 4.15–4.62 in 2022. Starting in early 2023, the ratio recovers and gradually rises, reaching a peak of 5.88 by December 2024, before slightly moderating but remaining elevated around 5.65–5.71 in 2025. This indicates a general improvement in the frequency with which payables are settled over time, especially notable in the late 2024 period.

Average Payables Payment Period

The average payables payment period, measured in days, demonstrates an inverse relationship to the payables turnover ratio as expected. Initially, the payment period shortens from 78 days in early 2021 to 66 days by September 2021, reflecting quicker payments. However, in 2022, this period lengthens significantly, peaking at 89 days midyear before decreasing steadily through 2023 and 2024. By the end of 2024 and into 2025, payment days stabilize in the low to mid-60s, indicating an improvement in payment efficiency compared to the earlier longer cycles.

Overall Trends and Insights

Over the full span of quarters examined, the data reveals some volatility in payment behavior, with initial improvements in payables management followed by a temporary decline in efficiency during 2022. Beginning 2023, the company appears to have regained tighter control over payables, as indicated by a rising turnover ratio and corresponding reduction in payment days. The trend toward faster payables turnover and shorter payment periods suggests an increased focus on optimizing working capital and managing supplier relationships more effectively in recent periods.

Inventory Processing Period

The average inventory processing period exhibits fluctuations over the periods analyzed. Initially, the period was 46 days and showed a slight decrease to 44 days by mid-2021, followed by a peak at 58 days in the middle of 2022. Subsequently, a general declining trend is observed, reaching a low of 35 days by the end of 2024. Slight increases and stabilizations occur towards the last periods but remain below early levels, suggesting more efficient inventory management in the later periods.

Receivable Collection Period

The average receivable collection period demonstrates variability with generally moderate increases in the earlier years, rising from 31 days in early 2021 to around 38 days in 2022. Following this, there is a gradual decrease, with periods dropping to the high 20s and low 30s by 2024, followed by an uptick in the final reported periods, reaching 37 days by the third quarter of 2025. This signals some variability in the company's efficiency in collecting receivables across the timeline.

Payables Payment Period

The average payables payment period shows a declining trend. Starting at 78 days in early 2021, the period decreases significantly to around 64-65 days by mid-2025. Intermittent short-term increases are observed; however, the longer-term trend indicates the company is settling its payables faster over time. This reduction in payment period could reflect strengthened supplier relationships or better cash management practices.

Cash Conversion Cycle

The cash conversion cycle (CCC) fluctuates around zero, indicating an efficient working capital management overall. Early periods show a negative or near-zero CCC, dipping as low as -3 days, which means the company collects cash from customers before needing to pay suppliers. In the middle of the timeline, minor positive values appear, peaking at 10 days in late 2021, before returning close to zero and slightly increasing again towards the final periods, reaching 9 days by the third quarter of 2025. Despite some ups and downs, the CCC maintains low values, which supports effective liquidity management.

Overall Analysis

The combined trends suggest improvements in inventory turnover and reductions in payables periods, resulting in a relatively stable and efficient cash conversion cycle. Slight increases in the receivable collection period in later periods might be a point of attention, potentially impacting short-term liquidity. Nonetheless, the company appears to manage its operational cash flows effectively, optimizing the time lag between cash inflows and outflows.