2/14/2024 0 Comments Gmc inventory turnoverThe equation for inventory turnover equals the cost of goods sold divided by the average inventory. It is calculated to see if a business has an excessive inventory in comparison to its sales level. Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation. In accounting, the inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year. It indicates what proportion of equity and debt the company is using to finance its assets. General Motors inventory turnover ratio for the three months ending Septemwas 2.19. Inventory turnover ratio can be defined as a ratio showing how many times a company's inventory is sold and replaced over a period. Total Debt/Equity is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. Say goodbye to the twists and turns of your daily drive.were talking about buttons and knobs of course Touchscreen allows you to control certain. Current and historical inventory turnover ratio for General Motors (GM) from 2010 to 2023. In the event that short-term obligations need to be paid off immediately, there are situations in which the current ratio would overestimate a company's short-term financial strength. Inventory is excluded because some companies have difficulty turning their inventory into cash. The quick ratio is more conservative than the current ratio, a more well-known liquidity measure, because it excludes inventory from current assets. The higher the current ratio, the more capable the company is of paying its obligations. ![]() Current Ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables).
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