Stock Analysis on Net
Stock Analysis on Net

General Motors Co. (NYSE:GM)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

General Motors Co., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal 240 389 20 84 42
U.S. state and local 490 368 142 272 102
Non-U.S. 874 707 395 493 758
Current income tax expense 1,604 1,464 557 849 902
U.S. federal (120) 263 1,699 632 (145)
U.S. state and local (43) 109 229 (15) 3
Non-U.S. (878) 53 286 308 9
Deferred income tax expense (benefit) (1,041) 425 2,214 925 (133)
Income tax expense 563 1,889 2,771 1,774 769

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. General Motors Co. current income tax expense increased from 2021 to 2022 and from 2022 to 2023.
Deferred income tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. General Motors Co. deferred income tax expense (benefit) decreased from 2021 to 2022 and from 2022 to 2023.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. General Motors Co. income tax expense decreased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

General Motors Co., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 5.67% 17.55% 24.28% 23.91% 14.45%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. General Motors Co. effective income tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

General Motors Co., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Postretirement benefits other than pensions 1,119 1,120 1,572 1,742 1,695
Pension and other employee benefit plans 1,522 997 1,540 2,999 2,968
Warranties, dealer and customer allowances, claims and discounts 3,684 4,341 4,253 5,538 6,299
U.S. capitalized research expenditures 9,879 8,851 7,285 6,763 6,035
U.S. operating loss and tax credit carryforwards 6,033 5,861 6,959 7,254 8,686
Non-U.S. operating loss and tax credit carryforwards 6,204 6,296 6,593 7,216 6,731
Miscellaneous 5,121 2,774 3,468 3,479 1,965
Deferred tax assets before valuation allowances 33,562 30,240 31,670 34,991 34,379
Valuation allowances (6,979) (7,744) (8,855) (9,095) (8,135)
Deferred tax assets 26,583 22,496 22,815 25,896 26,244
Property, plant and equipment (4,233) (1,957) (1,775) (1,670) (1,565)
Intangible assets (699) (707) (729) (744) (763)
Deferred tax liabilities (4,932) (2,664) (2,504) (2,414) (2,328)
Net deferred tax assets (liabilities) 21,651 19,832 20,311 23,482 23,916

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets before valuation allowances Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. General Motors Co. deferred tax assets before valuation allowances decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. General Motors Co. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. General Motors Co. net deferred tax assets (liabilities) decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Deferred Tax Assets and Liabilities, Classification

General Motors Co., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 22,339 20,539 21,152 24,136 24,640
Deferred tax liabilities 688 707 841 654 724

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. General Motors Co. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. General Motors Co. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

General Motors Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 273,064 264,037 244,718 235,194 228,037
Less: Noncurrent deferred tax assets, net 22,339 20,539 21,152 24,136 24,640
Total assets (adjusted) 250,725 243,498 223,566 211,058 203,397
Adjustment to Total Liabilities
Total liabilities (as reported) 204,757 191,752 178,903 185,517 182,080
Less: Noncurrent deferred tax liabilities, net 688 707 841 654 724
Total liabilities (adjusted) 204,069 191,045 178,062 184,863 181,356
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 64,286 67,792 59,744 45,030 41,792
Less: Net deferred tax assets (liabilities) 21,651 19,832 20,311 23,482 23,916
Stockholders’ equity (adjusted) 42,635 47,960 39,433 21,548 17,876
Adjustment to Net Income Attributable To Stockholders
Net income attributable to stockholders (as reported) 10,127 9,934 10,019 6,427 6,732
Add: Deferred income tax expense (benefit) (1,041) 425 2,214 925 (133)
Net income attributable to stockholders (adjusted) 9,086 10,359 12,233 7,352 6,599

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

General Motors Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

General Motors Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 6.42% 6.90% 8.82% 5.91% 5.49%
Adjusted net profit margin 5.76% 7.19% 10.77% 6.77% 5.38%
Total Asset Turnover
Reported total asset turnover 0.58 0.55 0.46 0.46 0.54
Adjusted total asset turnover 0.63 0.59 0.51 0.51 0.60
Financial Leverage
Reported financial leverage 4.25 3.89 4.10 5.22 5.46
Adjusted financial leverage 5.88 5.08 5.67 9.79 11.38
Return on Equity (ROE)
Reported ROE 15.75% 14.65% 16.77% 14.27% 16.11%
Adjusted ROE 21.31% 21.60% 31.02% 34.12% 36.92%
Return on Assets (ROA)
Reported ROA 3.71% 3.76% 4.09% 2.73% 2.95%
Adjusted ROA 3.62% 4.25% 5.47% 3.48% 3.24%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. General Motors Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Motors Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 General Motors Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. General Motors Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Motors Co. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

General Motors Co., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to stockholders 10,127 9,934 10,019 6,427 6,732
Automotive net sales and revenue 157,658 143,975 113,590 108,673 122,697
Profitability Ratio
Net profit margin1 6.42% 6.90% 8.82% 5.91% 5.49%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to stockholders 9,086 10,359 12,233 7,352 6,599
Automotive net sales and revenue 157,658 143,975 113,590 108,673 122,697
Profitability Ratio
Adjusted net profit margin2 5.76% 7.19% 10.77% 6.77% 5.38%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income attributable to stockholders ÷ Automotive net sales and revenue
= 100 × 10,127 ÷ 157,658 = 6.42%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to stockholders ÷ Automotive net sales and revenue
= 100 × 9,086 ÷ 157,658 = 5.76%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. General Motors Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Automotive net sales and revenue 157,658 143,975 113,590 108,673 122,697
Total assets 273,064 264,037 244,718 235,194 228,037
Activity Ratio
Total asset turnover1 0.58 0.55 0.46 0.46 0.54
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Automotive net sales and revenue 157,658 143,975 113,590 108,673 122,697
Adjusted total assets 250,725 243,498 223,566 211,058 203,397
Activity Ratio
Adjusted total asset turnover2 0.63 0.59 0.51 0.51 0.60

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Automotive net sales and revenue ÷ Total assets
= 157,658 ÷ 273,064 = 0.58

2 Adjusted total asset turnover = Automotive net sales and revenue ÷ Adjusted total assets
= 157,658 ÷ 250,725 = 0.63

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Motors Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 273,064 264,037 244,718 235,194 228,037
Stockholders’ equity 64,286 67,792 59,744 45,030 41,792
Solvency Ratio
Financial leverage1 4.25 3.89 4.10 5.22 5.46
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 250,725 243,498 223,566 211,058 203,397
Adjusted stockholders’ equity 42,635 47,960 39,433 21,548 17,876
Solvency Ratio
Adjusted financial leverage2 5.88 5.08 5.67 9.79 11.38

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 273,064 ÷ 64,286 = 4.25

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 250,725 ÷ 42,635 = 5.88

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 General Motors Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to stockholders 10,127 9,934 10,019 6,427 6,732
Stockholders’ equity 64,286 67,792 59,744 45,030 41,792
Profitability Ratio
ROE1 15.75% 14.65% 16.77% 14.27% 16.11%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to stockholders 9,086 10,359 12,233 7,352 6,599
Adjusted stockholders’ equity 42,635 47,960 39,433 21,548 17,876
Profitability Ratio
Adjusted ROE2 21.31% 21.60% 31.02% 34.12% 36.92%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income attributable to stockholders ÷ Stockholders’ equity
= 100 × 10,127 ÷ 64,286 = 15.75%

2 Adjusted ROE = 100 × Adjusted net income attributable to stockholders ÷ Adjusted stockholders’ equity
= 100 × 9,086 ÷ 42,635 = 21.31%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. General Motors Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to stockholders 10,127 9,934 10,019 6,427 6,732
Total assets 273,064 264,037 244,718 235,194 228,037
Profitability Ratio
ROA1 3.71% 3.76% 4.09% 2.73% 2.95%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to stockholders 9,086 10,359 12,233 7,352 6,599
Adjusted total assets 250,725 243,498 223,566 211,058 203,397
Profitability Ratio
Adjusted ROA2 3.62% 4.25% 5.47% 3.48% 3.24%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income attributable to stockholders ÷ Total assets
= 100 × 10,127 ÷ 273,064 = 3.71%

2 Adjusted ROA = 100 × Adjusted net income attributable to stockholders ÷ Adjusted total assets
= 100 × 9,086 ÷ 250,725 = 3.62%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Motors Co. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.