EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

General Motors Co., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net operating profit after taxes (NOPAT)¹	11,524)	10,217)	13,885)	7,866)	6,227)
Cost of capital²	7.40%	7.77%	8.32%	8.38%	7.52%
Invested capital³	182,260)	172,128)	167,086)	152,793)	145,313)

Economic profit⁴	(1,961)	(3,162)	(12)	(4,944)	(4,705)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 11,524 – 7.40% × 182,260 = -1,961

Download chart

Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	General Motors Co. economic profit decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

General Motors Co., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to stockholders	10,127)	9,934)	10,019)	6,427)	6,732)
Deferred income tax expense (benefit)¹	(1,041)	425)	2,214)	925)	(133)
Increase (decrease) in allowance²	38)	68)	(32)	23)	(10)
Increase (decrease) in deferred revenue³	1,780)	570)	(376)	(349)	(267)
Increase (decrease) in product warranty and related liabilities⁴	765)	(1,244)	1,532)	444)	208)
Increase (decrease) in reserves related to restructuring and other initiatives⁵	259)	235)	(67)	(212)	(558)
Increase (decrease) in equity equivalents⁶	1,801)	54)	3,271)	831)	(760)
Automotive interest expense	911)	987)	950)	1,098)	782)
Interest expense, operating lease liability⁷	50)	49)	43)	47)	52)
Adjusted automotive interest expense	961)	1,036)	993)	1,145)	834)
Tax benefit of automotive interest expense⁸	(202)	(217)	(208)	(240)	(175)
Adjusted automotive interest expense, after taxes⁹	759)	818)	784)	905)	659)
Interest income	(1,109)	(460)	(146)	(241)	(429)
Investment income, before taxes	(1,109)	(460)	(146)	(241)	(429)
Tax expense (benefit) of investment income¹⁰	233)	97)	31)	51)	90)
Investment income, after taxes¹¹	(876)	(363)	(115)	(190)	(339)
Net income (loss) attributable to noncontrolling interest	(287)	(226)	(74)	(106)	(65)
Net operating profit after taxes (NOPAT)	11,524)	10,217)	13,885)	7,866)	6,227)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in product warranty and related liabilities.

⁵ Addition of increase (decrease) in reserves related to restructuring and other initiatives.

⁶ Addition of increase (decrease) in equity equivalents to net income attributable to stockholders.

⁷ 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,171 × 4.30% = 50

⁸ 2023 Calculation
Tax benefit of automotive interest expense = Adjusted automotive interest expense × Statutory income tax rate
= 961 × 21.00% = 202

⁹ Addition of after taxes interest expense to net income attributable to stockholders.

¹⁰ 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 1,109 × 21.00% = 233

¹¹ Elimination of after taxes investment income.

Download chart

Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	General Motors Co. NOPAT decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

General Motors Co., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Income tax expense	563)	1,889)	2,771)	1,774)	769)
Less: Deferred income tax expense (benefit)	(1,041)	425)	2,214)	925)	(133)
Add: Tax savings from automotive interest expense	202)	217)	208)	240)	175)
Less: Tax imposed on investment income	233)	97)	31)	51)	90)
Cash operating taxes	1,573)	1,585)	735)	1,039)	987)

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).

Download chart

Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	General Motors Co. cash operating taxes increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

General Motors Co., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Short-term debt and current portion of long-term debt	38,968)	38,778)	33,720)	36,913)	37,400)
Long-term debt, excluding current portion	82,773)	75,921)	75,659)	72,981)	65,924)
Operating lease liability¹	1,171)	1,214)	1,216)	1,178)	1,249)
Total reported debt & leases	122,912)	115,913)	110,595)	111,072)	104,573)
Stockholders’ equity	64,286)	67,792)	59,744)	45,030)	41,792)
Net deferred tax (assets) liabilities²	(21,651)	(19,832)	(20,311)	(23,482)	(23,916)
Allowance³	298)	260)	192)	224)	201)
Deferred revenue⁴	7,821)	6,041)	5,471)	5,847)	6,196)
Product warranty and related liabilities⁵	9,295)	8,530)	9,774)	8,242)	7,798)
Reserves related to restructuring and other initiatives⁶	779)	520)	285)	352)	564)
Equity equivalents⁷	(3,458)	(4,481)	(4,589)	(8,817)	(9,157)
Accumulated other comprehensive (income) loss, net of tax⁸	10,247)	7,901)	9,269)	13,488)	11,156)
Noncontrolling interest, Cruise stock incentive awards	118)	358)	—)	—)	—)
Noncontrolling interests	3,903)	4,135)	6,071)	4,647)	4,165)
Adjusted stockholders’ equity	75,096)	75,705)	70,495)	54,348)	47,956)
Construction in progress⁹	(8,135)	(7,340)	(5,395)	(3,581)	(3,042)
Available-for-sale debt securities, marketable securities¹⁰	(7,613)	(12,150)	(8,609)	(9,046)	(4,174)
Invested capital	182,260)	172,128)	167,086)	152,793)	145,313)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenue.

⁵ Addition of product warranty and related liabilities.

⁶ Addition of reserves related to restructuring and other initiatives.

⁷ Addition of equity equivalents to stockholders’ equity.

⁸ Removal of accumulated other comprehensive income.

⁹ Subtraction of construction in progress.

¹⁰ Subtraction of available-for-sale debt securities, marketable securities.

Download chart

Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	General Motors Co. invested capital increased from 2021 to 2022 and from 2022 to 2023.

General Motors Co., cost of capital calculations

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	44,042)	44,042)	÷	166,325)	=	0.26	0.26	×	17.69%	=	4.68%
Debt³	121,112)	121,112)	÷	166,325)	=	0.73	0.73	×	4.68% × (1 – 21.00%)	=	2.69%
Operating lease liability⁴	1,171)	1,171)	÷	166,325)	=	0.01	0.01	×	4.30% × (1 – 21.00%)	=	0.02%
Total:	166,325)					1.00					7.40%

Based on: 10-K (reporting date: 2023-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	54,837)	54,837)	÷	166,617)	=	0.33	0.33	×	17.69%	=	5.82%
Debt³	110,566)	110,566)	÷	166,617)	=	0.66	0.66	×	3.68% × (1 – 21.00%)	=	1.93%
Operating lease liability⁴	1,214)	1,214)	÷	166,617)	=	0.01	0.01	×	4.00% × (1 – 21.00%)	=	0.02%
Total:	166,617)					1.00					7.77%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	77,737)	77,737)	÷	193,280)	=	0.40	0.40	×	17.69%	=	7.11%
Debt³	114,327)	114,327)	÷	193,280)	=	0.59	0.59	×	2.54% × (1 – 21.00%)	=	1.19%
Operating lease liability⁴	1,216)	1,216)	÷	193,280)	=	0.01	0.01	×	3.50% × (1 – 21.00%)	=	0.02%
Total:	193,280)					1.00					8.32%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	79,077)	79,077)	÷	196,779)	=	0.40	0.40	×	17.69%	=	7.11%
Debt³	116,524)	116,524)	÷	196,779)	=	0.59	0.59	×	2.69% × (1 – 21.00%)	=	1.26%
Operating lease liability⁴	1,178)	1,178)	÷	196,779)	=	0.01	0.01	×	4.00% × (1 – 21.00%)	=	0.02%
Total:	196,779)					1.00					8.38%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	50,058)	50,058)	÷	157,634)	=	0.32	0.32	×	17.69%	=	5.62%
Debt³	106,327)	106,327)	÷	157,634)	=	0.67	0.67	×	3.53% × (1 – 21.00%)	=	1.88%
Operating lease liability⁴	1,249)	1,249)	÷	157,634)	=	0.01	0.01	×	4.20% × (1 – 21.00%)	=	0.03%
Total:	157,634)					1.00					7.52%

Based on: 10-K (reporting date: 2019-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

General Motors Co., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(1,961)	(3,162)	(12)	(4,944)	(4,705)
Invested capital²	182,260)	172,128)	167,086)	152,793)	145,313)
Performance Ratio
Economic spread ratio³	-1.08%	-1.84%	-0.01%	-3.24%	-3.24%
Benchmarks
Economic Spread Ratio, Competitors⁴
Ford Motor Co.	-5.84%	-5.68%	-0.52%	-6.21%	-5.92%
Tesla Inc.	-8.13%	4.40%	-7.64%	-19.09%	-20.10%

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,961 ÷ 182,260 = -1.08%

⁴ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	General Motors Co. economic spread ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

General Motors Co., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(1,961)	(3,162)	(12)	(4,944)	(4,705)

Automotive net sales and revenue	157,658)	143,975)	113,590)	108,673)	122,697)
Add: Increase (decrease) in deferred revenue	1,780)	570)	(376)	(349)	(267)
Adjusted automotive net sales and revenue	159,438)	144,545)	113,214)	108,324)	122,430)
Performance Ratio
Economic profit margin²	-1.23%	-2.19%	-0.01%	-4.56%	-3.84%
Benchmarks
Economic Profit Margin, Competitors³
Ford Motor Co.	-6.12%	-6.24%	-0.66%	-9.11%	-7.15%
Tesla Inc.	-5.40%	2.65%	-5.63%	-23.46%	-20.22%

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).

¹ Economic profit. See details »

² 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted automotive net sales and revenue
= 100 × -1,961 ÷ 159,438 = -1.23%

³ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	General Motors Co. economic profit margin deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

General Motors Co. (NYSE:GM)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin