Thanks for visiting my General Motors (GM) Financial Report page. On this page, you will be able to find preliminary information about GM's current financial performance as well as some historical track records and trends.
For a more detailed examination of GM's financial performance, I offer two reports, which are "A Beginner's Guide to GM Financial Analysis" and "GM Financial Report by Paul Borosky, MBA." Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:
- Summarized income statements for the last 5 years.
- Summarized balance sheets for the last 5 years.
- Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "GM Financial Report". The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...
- Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
- "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years (Starting in 2021).
- Overall financial analysis summary for the company.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Click Below for the CURRENT
Downloadable PDF Price!!
Click Below for the CURRENT
Downloadable PDF Price!!
Sample Financial Report
General Motors (GM): Brief Summary
General Motors (GM) is a renowned automotive manufacturer in Detroit, Michigan. With a rich history spanning decades, GM has established itself as a leading car and truck producer, catering to domestic and international markets. The company's expertise lies in its ability to craft innovative designs, manufacture high-quality vehicles, facilitate sales, and provide financing options.
GM boasts an impressive portfolio of popular brands that have captivated consumers worldwide. These include Buick, Cadillac, Chevrolet, GMC, and Wuling, each offering a unique blend of style, performance, and reliability. These brands represent GM's commitment to delivering exceptional vehicles across a diverse range of segments, catering to customers' varying needs and preferences.
A Legacy of Excellence
GM's enduring legacy in the automotive industry can be attributed to its unwavering dedication to excellence. By combining cutting-edge technology with meticulous craftsmanship, the company has consistently produced vehicles that redefine industry standards. From sleek sedans to robust trucks, GM's diverse lineup showcases its commitment to innovation, safety, and customer satisfaction.
Global Reach and Impact
With a strong presence in the United States and worldwide, GM has successfully expanded its operations to cater to a global customer base. The company has established itself as a key player in the international automotive market by strategically leveraging its vast network of manufacturing facilities, distribution channels, and dealerships. GM's commitment to sustainability and environmental stewardship further highlights its aim to contribute positively to the communities it serves.
From a financial perspective, GM’s stock price has fluctuated between $30.33 to $67.21 in the last 52 weeks, ending August 2022. The company’s last dividend payment was $0.38 back in March 2020. The market capitalization rate for the company is approximately $57.739 billion. As for the beta, it is 1.28. This shows that the firm is moderately more risky of an investment than the overall market.
General Motors (GM) Financial Report Sources
“General Motors (GM) 2019 Financial Report: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by Paul Borosky, MBA., and owner of Quality Business Plan. In this report, I used GM's 2018 10k, GM's 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and GM's 2019 10k annual report as the basis for information gathering.
Section 1: General Motors (GM) Income Statement Analyzed
In this section, I walk through a broad definition of what an income statement is and why it is essential. I then discuss and define income statement line items, such as revenues, gross profits, etc., in detail. After each line item is defined and discussed, I finally offer a summary analysis of GM's significant income statement line item trends from 2015 to 2019 in most cases.
The Importance of Income Statement for General Motors (GM) Financial Analysis
Assessing Performance and Profitability
The income statement is vital in analyzing General Motors' financial health. It provides a comprehensive overview of the company's revenue, expenses, and net income over a specific period. Analysts can evaluate GM's performance and profitability by examining this statement, allowing for informed decision-making.
The income statement helps stakeholders understand GM's revenue sources, such as car and truck sales, financing activities, and aftermarket services. It also reveals the company's expenses, including manufacturing, marketing, and research and development investments. Analysts can assess GM's ability to generate profit and its cost management strategies by comparing revenue and expenses.
Identifying Trends and Financial Stability
The income statement lets analysts identify trends and patterns in GM's financial performance. By examining year-on-year or quarter-on-quarter data, analysts can evaluate growth rates, identify potential areas of concern, and recognize opportunities for improvement. This analysis provides insights into GM's financial stability and its ability to adapt to changing market conditions.
Additionally, the income statement helps in ratio analysis. The income statement can derive key financial ratios like gross profit margin, operating profit margin, and net profit margin. These ratios provide valuable insights into GM's operational efficiency, cost control measures, and profitability.
Sample: GM Revenue Growth.
General Motors ended 2015 with revenues of approximately $135.7 billion. The following year, the company would increase revenues to approximately $149 billion. However, revenues fluctuated over the next three years from $147 billion to $137.2 billion in 2019. This trend indicates that the organization is having difficulty attracting and retaining loyal customers in the automobile market. On average, GM’s growth rate was .5%. For a mature company, this would be slightly below average for growth. From an investor’s perspective, this would be a little bit concerning. I mean, $137 billion is a lot of money. However, this is significantly lower than in the previous three years.
General Motors (GM) 2021 Summary Income Statement
|R & D||-||-||-||-||-|
|Total Operating Expenses||
Section 2: GM Balance Sheet Analyzed
For GM's balance sheet, I again review each critical line item from the balance sheet. In reviewing each line item, I will define GM's balance sheet line items, such as cash, property, plant and equipment, and liabilities. Next, I then offer a summary analysis of GM's essential balance sheet line items.
The Importance of Balance Sheet for General Motors (GM) Financial Analysis
Assessing Financial Position and Liquidity
The balance sheet is crucial in analyzing General Motors' financial health. It provides a snapshot of the company's assets, liabilities, and shareholder's equity at a specific time. Analysts can assess GM's financial position and liquidity by examining the balance sheet, enabling a comprehensive evaluation.
The balance sheet showcases GM's assets, including cash, inventory, property, plant, and equipment. It also presents liabilities such as debts, accounts payable, and accrued expenses. By comparing assets and liabilities, analysts can gauge GM's ability to meet short-term and long-term obligations and evaluate the company's liquidity position.
Evaluating Capital Structure and Solvency
The balance sheet helps analysts evaluate GM's capital structure and solvency. Shareholders' equity, which represents the company's net worth, is a key balance sheet component. It highlights the portion of GM's assets financed by shareholders' investments and retained earnings. This information assists in understanding the company's financial leverage and its ability to sustain operations in the long run.
Additionally, the balance sheet aids in assessing GM's solvency, as it reveals the proportion of the company's assets financed by external sources, such as debts and loans. By examining debt-to-equity ratios and debt maturity profiles, analysts can gauge the company's ability to manage its debts and meet financial obligations.
GM's Cash Position.
General Motors ended 2015 with approximately $15.2 billion in cash. The following year, the cash position would fall to $12.6 billion. However, in the next several years, their cash position would climb to $19 billion in 2019. The cash position growth indicates that the firm needs more liquid assets to fund operations. As compared to total assets, cash is approximately 8.4%. Finally, as a percentage of sales, this would be 13.9%.
General Motors (GM) 2021 Summary Balance Sheet
|Short Term Investment||
|LT Debt - Current||
|Total Current Liabilities||
|Total Equity & Liability||
Section 3: General Motors (GM) Financial Ratios Analyzed
For this section, I have chosen several financial ratios for GM to review. In reviewing each of GM's financial ratios, I first start by defining the financial ratio. Next, I supply the financial formula for calculating the specific ratio. Finally, I briefly analyze General Motors' Important Financial ratios.
GM Current Ratio:
General Motors' current ratio ended 2015 at 1.09. The company was well-balanced in this position because it had slightly more current assets than current liabilities. Over the next several years, the organization's current ratio would fall to .88 and 2019. This indicates that the company continually increases its current liabilities compared to current assets. In doing this, the firm is continually increasing its risk for insolvency. In some industries, such as retail, having a current ratio below 1.0 is acceptable because of the continuous cash flow. In GM's case, having a current ratio below 1.0 for a sustained period of time is probably a risk that the organization should not be taken.
GM Total Asset Turnover:
GM ended 2015 with a total asset turnover of .70. In the next five years, the company's total asset turnover would fall to .60. This continued decline in total asset turnover shows that the firm is utilizing assets in the company. The main driver for this problem would be its fixed assets. In reviewing the fixed asset turnover, this ratio has also been continually declining. This means that the firm is not optimally using its plants and equipment. To improve the fixed asset turnover and total asset turnover, the company needs to decide which plant and equipment are underutilized and divest the property accordingly.
GM Return on Assets:
GM's return on assets ended in 2015 at 4.94%. In the next four years, the return assets would fall to 2.92. This means that the company is making less money on management-controlled assets. To improve upon this issue, GM's executive team needs to identify which assets may be divested. Or, even better, identify how the company can improve sales while maintaining the status quo on assets held.
GM Debt ratio.
General Motors' debt ratio is relatively low. Starting in 2015, its debt ratio was 22.4%. In the next three years, their debt ratio would continually climb until it reached 32.1% in 2018. However, in 2019, General Motors lowered its debt ratio back to 28.9%. Most large organizations tend to have significant debt as compared to equity. The organization can make money on borrowed money by having a prominent debt position.
Further, the companies can exploit tax benefits for interest payments made. A benefit of General Motors' low debt ratio is that they are better positioned to weather recessionary times. A challenge is that the company needs more equity to maintain operations and have any chance at all for future growth.
The Importance of Financial Ratios for General Motors (GM) Financial Analysis
Assessing Performance and Efficiency
Financial ratios play a vital role in analyzing General Motors' financial health. These ratios provide valuable insights into the company's performance, efficiency, and profitability. By examining these metrics, analysts can better understand GM's financial position and make informed decisions.
Financial ratios such as return on assets (ROA), return on equity (ROE), and return on investment (ROI) help assess GM's ability to generate profits from its assets and investments. These ratios provide a measure of the company's operational efficiency and its ability to utilize resources effectively.
Evaluating Financial Stability and Risk
Financial ratios also aid in evaluating GM's financial stability and risk management. Ratios such as debt-to-equity ratio, current ratio, and interest coverage ratio provide insights into the company's leverage, liquidity, and ability to meet its financial obligations. These ratios help assess GM's solvency and capacity to handle financial risks.
Furthermore, ratios like gross profit margin, operating profit margin, and net profit margin reveal GM's profitability and cost management efficiency. These metrics enable analysts to compare GM's profitability against industry benchmarks and identify areas for improvement.