General Motors Co. (NYSE:GM)

The composition of liabilities and stockholders’ equity exhibited several notable shifts between 2021 and 2025. Total liabilities generally increased as a percentage of total liabilities and equity, while stockholders’ equity decreased over the period. A closer examination of individual line items reveals specific drivers of these changes.

Current Liabilities

Current liabilities as a percentage of the total initially rose from 30.41% in 2021 to a peak of 34.59% in 2022, before declining slightly to 33.18% in 2025. Accounts payable remained relatively stable, fluctuating between 8.33% and 10.41% before decreasing to 8.50% in 2025. Dealer and customer allowances, claims and discounts demonstrated a consistent increase, rising from 1.31% to 2.31% over the five-year period. Short-term debt and the current portion of long-term debt also increased initially, peaking at 14.69% in 2022, then decreased to 12.68% in 2025. Accrued liabilities showed a steady increase, growing from 8.29% to 12.00%.

Non-Current Liabilities

Non-current liabilities displayed a more complex pattern. While initially decreasing from 42.70% in 2021 to 38.09% in 2022, they subsequently increased to 44.36% in 2025. Long-term debt, excluding the current portion, contributed significantly to this trend, increasing from 30.92% to 33.63%. Deferred revenue also increased steadily, from 1.23% to 2.52%. Product warranty and related liabilities also showed an upward trend, rising from 2.45% to 2.60%.

Specific Liability Components

GM Financial liabilities, both short-term and long-term, represent a substantial portion of the total. While the short-term portion fluctuated, the long-term portion increased from 24.23% to 28.09%. Automotive liabilities, both current and non-current, showed a decrease over the period, suggesting a potential shift in financing strategies or operational changes. Postretirement benefit liabilities generally decreased, with pensions declining from 3.27% to 1.77% and postretirement benefits other than pensions decreasing from 2.35% to 1.43%.

Stockholders’ Equity

Stockholders’ equity decreased as a percentage of total liabilities and equity, falling from 26.89% in 2021 to 22.46% in 2025. Retained earnings experienced fluctuations, peaking at 20.28% in 2023 before decreasing to 18.32% in 2025. Additional paid-in capital also decreased, from 11.06% to 7.08%. Accumulated other comprehensive loss remained consistently negative, but its impact lessened slightly over time. Common stock remained a minimal percentage of the total. Noncontrolling interests also decreased over the period.

Overall, the observed trends suggest a growing reliance on liabilities to finance operations, coupled with a decrease in the relative contribution of stockholders’ equity. The increases in accrued liabilities, dealer allowances, and long-term debt warrant further investigation to understand the underlying business drivers. The decrease in certain equity components, particularly additional paid-in capital, may indicate changes in capital allocation strategies.