Financial statement analysis and common stock valuation

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a General Motors Co. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

An approach to decomposing General Motors Co. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by General Motors Co..

Analysis of Solvency Ratios

Examines General Motors Co. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage
• Fixed Charge Coverage

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently General Motors Co. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Common Stock Valuation Ratios

Relative valuation technique determine the value of General Motors Co. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about General Motors Co. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on General Motors Co. balance sheet.

Analysis of Geographic Areas

General Motors Co. operates in 2 regions: U.S. and Non-U.S..

• Area Asset Turnover
• Net sales and revenue
• Long-lived assets

Analysis of Reportable Segments

General Motors Co. operates in 4 segments: GM North America (GMNA); GM International (GMI); Cruise; and GM Financial.

• Segment Profit Margin
• Segment Return on Assets (Segment ROA)
• Segment Asset Turnover
• Segment Capital Expenditures to Depreciation
• Net sales and revenue
• Earnings (loss) before interest and taxes, adjusted
• Total assets
• Expenditures for property
• Depreciation and amortization

Analysis of Revenues

• Revenues as Reported