General Motors (GM) Financial Report

General Motors (GM) Financial Ratios and Financial Statements Analyzed

Hey All,

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!

Sincerely,

Paul, MBA.

PDF/Downloadable Versions

Beginner's Guide to General Motors 2021 Financial Analysis

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GM 2019 Financial Report by Paul Borosky, MBA.

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Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

General Motors (GM): Brief Summary

General Motors (GM) is a car and truck manufacturer in Detroit, Michigan.  The organization specializes in designing, building, selling, and financing cars and trucks throughout the US and on a global basis.  Popular brands under GM control would include Buick, Cadillac, Chevrolet, GMC, and Wuling.

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 as compared to 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.  From this, 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.

GM Revenue Growth.

General Motors ended 2015 with revenues of approximately $135.7 billion.  In the following year, the company would increase revenues to approximately $149 billion.  However, over the next three years, revenues fluctuated from $147 billion to $137.2 billion in 2019.  This trend indicates that the organization is having a difficult time 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.  But however, this is significantly lower than the previous three years.

General Motors (GM) 2021 Summary Income Statement

Column1

2021

2020 2019 2018

2017

Revenues

                 127,004

                 122,485                  137,237                  147,049

                   145,588

COGS

                 100,544

                   97,539                  110,651                  120,656

                   116,229

Gross Profit

                   26,460

                   24,946                    26,586                    26,393

                     29,359

 
SG&A

                     8,554

                     7,038                      8,491                      9,650

                       9,570

Depreciation

                   12,052

                   12,815                    14,118                    13,669

                     12,261

R & D                            -                            -                            -                            -                             -
Other

                     8,582

                   11,274                    12,614                    12,298

                     11,128

Total Operating Expenses

                   29,188

                   31,127                    35,223                    35,617

                     32,959

EBIT

                     9,324

                     6,634                      5,481                      4,445

                     10,016

Other Income                            -                            -                            -                            -                             -
Interest Expense

                        950

                     1,098                         782                         655

                          575

EBT

                   12,716

                     8,095                      7,436                      8,549

                     11,863

Taxes

                     2,771

                     1,774                         769                         474

                     11,533

Net Income

                    9,945

                    6,427                     6,732                     8,014

                    (3,864)

 

Section 2: GM Balance Sheet Analyzed

For GM's balance sheet, I again go through each important 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 important balance sheet line items.

GM's Cash Position.

General Motors ended 2015 with approximately $15.2 billion in cash.  In 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

Column1

2021

2020 2019 2018

2017

Cash

                     20,067

                 19,992                  19,069                  20,844

                 15,512

Short Term Investment

                       8,609

                   9,046                    4,174                    5,966

                   8,313

Account Receivable

                       7,394

                 34,244                  33,398                  33,399

                 28,685

Inventory

                     12,988

                 10,235                  10,398                    9,816

                 10,663

Other                              -                         -                         -                         -                         -
Current Assets

                   82,103

               80,924                74,992                75,293

               68,744

Net PPE

                     41,115

                 37,632                  38,750                  38,758

                 36,253

Goodwill

                       5,087

                   5,230                    5,337                    5,579

                   5,849

Other                              -                         -                         -                         -                         -
Total Assets

                 244,718

             235,194              228,037              227,339

             212,482

Accounts Payable

                     20,391

                 19,928                  21,018                  22,297

                 23,929

Accrued Expense

                     20,297

                 23,069                  26,487                  28,049

                 25,996

Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                              -                         -                         -                         -                         -
LT Debt - Current

                     33,720

                 36,913                  37,400                  31,891

                 26,965

Other                         -                         -                         -                         -
Total Current Liabilities

                     74,408

                 79,910                  84,905                  82,237

                 76,890

LT Debt

                     75,659

                 72,981                  65,924                  73,060

                 67,254

Other                              -                         -                         -                         -                         -
Total Liabilities

                 178,903

             185,517              182,080              184,562

             176,282

Common Stock

                     27,076

                 26,556                  26,074                  25,563

                 25,371

Treasury                              -                         -                         -                         -                         -
Retained Earnings

                     41,937

                 31,962                  26,860                  25,563

                 17,627

Other                              -                         -                         -                         -                         -
Total Equity

                   65,815

               49,677                45,957                42,777

               36,200

Total Equity & Liability

                 244,718

             235,194              228,037              227,339

             212,482

 

Section 3: General Motors (GM) Financial Ratios Analyzed

For this section, I have chosen several different financial ratios to review for GM.  In reviewing each of GM's financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of General Motors' Important Financial ratios. 

GM Current Ratio:

General Motors' current ratio ended 2015 at 1.09.  At this position, the company was well balanced because it had slightly more current assets as compared to current liabilities.  Over the next several years, the organization's current ratio would fall to .88 and 2019.  This indicates that the company is continually increasing its current liabilities as 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 been continually declining as well.  This means that the firm is not optimally using its plants and equipment.  To improve the fixed asset turnover, as well as the 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 assets controlled by management.  To improve upon this issue, again, 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.  By having a large debt position, the organization can make money on borrowed money.

Further, the companies can exploit tax benefits for interest payments made.  A benefit of General Motors' low debt ratio is that they are in a better position 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.