General Motors (GM) Financial Report: Financial Ratios and Annual Financial Statements Analyzed

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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, please check out the "Financial Report".  In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends, and other happenings.
  • Five year’s 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.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

PDF/Downloadable Version

GM 2019 Financial Report by Paul Borosky, MBA.
  • Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!

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 14.33 to $41.90 in the last 52 weeks.  The company’s last dividend payment was $0.38 back in March 2020.  The market capitalization rate for the company is approximately $32.6 billion.  As for the beta, it is 1.39.  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 2015 to 2019

In this section, I walk through a broad definition as to what an income statement is and why it is important.  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 important income statement line item trends from 2015 to 2019, in most cases.

GM Revenue Growth.

General Motors ended 2015 with revenues at approximately $135.7 billion.  In the next 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 a lot of money.  But however, this is significantly lower than the previous three years.

GM Summary Income Statement 2019

Column1 2019 2018 2017 2016 2015
Revenues                  137,237                  147,049                  145,588                  149,184                    135,725
COGS                  110,651                  120,656                  116,229                  120,499                    112,995
Gross Profit                    26,586                    26,393                    29,359                    28,685                      22,730
SG&A                      8,491                      9,650                      9,570                    10,354                      11,888
Depreciation                    14,118                    13,669                    12,261                      9,819                        7,487
R & D                            -                            -                            -                            -                             -
Other                            -                            -                            -                            -                             -
Operating Expenses                    22,609                    23,319                    21,831                    20,173                      19,375
EBIT                      8,218                      9,204                    12,438                    12,571                        8,794
Other Income                    12,614                    12,298                    11,128                      8,369                        5,304
Interest Expense                         782                         655                         575                         563                           423
EBT                      7,436                      8,549                    11,863                    12,008                        8,371
Taxes                         769                         474                    11,533                      2,739                      (1,219)
Net Income                     6,667                     8,005                   (3,864)                     9,427                      9,615

Section 2: GM Balance Sheet Analyzed from 2015 to 2019

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 between 2015 to 2019.  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 next 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%.

GM Summary Balance Sheet 2019

Column1 2019 2018 2017 2016 2015
Cash                      19,069                  20,844                  15,512                  12,574                  15,238
Short Term Investment                        4,174                    5,966                    8,313                  11,841                    8,163
Account Receivable                      33,398                  33,399                  28,685                  24,827                  26,388
Inventory                      10,398                    9,816                  10,663                  11,040                  13,764
Other                              -                         -                         -                         -                         -
Current Assets                    74,992                75,293                68,744                76,203                78,007
Net PPE                      38,750                  38,758                  36,253                  32,603                  31,229
Goodwill                        5,337                    5,579                    5,849                    6,149                    5,947
Other                              -                         -                         -                         -                         -
Total Assets                  228,037              227,339              212,482              221,690              194,520
Accounts Payable                      21,018                  22,297                  23,929                  23,333                  24,062
Accrued Expense                      26,487                  28,049                  25,996                  25,893                  27,842
Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                              -                         -                         -                         -                         -
LT Debt - Current                      37,400                  31,891                  26,965                  23,797                  19,562
Other                              -                         -                         -                         -                         -
Total Current Liabilities                      84,905                  82,237                  76,890                  85,181                  71,466
LT Debt                      65,924                  73,060                  67,254                  51,326                  43,549
Other                              -                         -                         -                         -                         -
Total Liabilities                  182,080              184,562              176,282              177,615              154,197
Common Stock                      26,074                  25,563                  25,371                  26,983                  27,607
Treasury                              -                         -                         -                         -                         -
Retained Earnings                      26,860                  25,563                  17,627                  26,168                  20,285
Other                              -                         -                         -                         -                         -
Total Equity                    45,957                42,777                36,200                44,075                39,871
Total Equity & Liability                  228,037              227,339              212,482              221,690              194,520

Section 3: General Motors (GM) Financial Ratios Analyzed from 2015 to 2019

For this section, I have chosen several different financial ratios to review for GM from 2015 to 2019.  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 Motor's 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 their 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 under the 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 their 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 lower its debt ratio back to 28.9%.  For most large organizations, they 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 for 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.

GM Liquidity Ratios 2019

Ratios 2019 2018 2017 2016 2015
Current Ratio                           0.88                    0.92
Cash Ratio                           0.22                    0.25
Quick Ratio                           0.76                    0.80
Net Working Capital                       15,360                13,713

GM Asset Utilization 2019

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           0.60                    0.65
Fixed Asset Turnover                           3.54                    3.79
Days Sales Outstanding                         88.83                  82.90
Inventory Turnover                         13.20                  14.98
Accounts Receivable Turnover                           4.11                    4.40
Working Capital Turnover                           8.93                  10.72
AP Turnover                           6.53                    6.60
Average Days Inventory                           0.04                    0.04
Average Days Payable                           0.02                    0.02

GM Profitability Ratios 2019

Ratios 2019 2018 2017 2016 2015
Return on Assets 2.92% 3.52%
Return on Equity 14.51% 18.71%
Net Profit Margin 4.86% 5.44%
Gross Profit Margin 19.37% 17.95%
Operating Profit Margin 5.99% 6.26%
Basic Earning Power 3.60% 4.05%
ROCE 5.74% 6.34%
Capital Employed                     143,132              145,102
ROIC 13.62% 16.57%

GM Long-term Debt 2019

Ratios 2019 2018 2017 2016 2015
Debt Ratio 28.91% 32.14%
Debt/Equity 143.45% 170.79%
Times Interest Earned                         10.51                  14.05

GM Current Ratio 2019

Column1 2019 2018 2017 2016 2015
Current Assets                       74,992                75,293
/ Current Liabilities                       84,905                82,237
Current Ratio                          0.88                   0.92