Economic Value Added (EVA)
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.
Paying user area
Try for free
General Motors Co. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2010
- Debt to Equity since 2010
- Price to Book Value (P/BV) since 2010
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to General Motors Co. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Economic Profit
General Motors Co., economic profit calculation
US$ in millions
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | ||||||
| Cost of capital2 | ||||||
| Invested capital3 | ||||||
| Economic profit4 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= – × =
- Net Operating Profit After Taxes (NOPAT)
- The net operating profit after taxes showed significant fluctuations over the examined period. Starting from 7,866 million USD in 2020, NOPAT increased sharply to 13,885 million USD in 2021. This was followed by a decline to 10,217 million USD in 2022, a subsequent recovery to 11,524 million USD in 2023, and another decrease to 10,525 million USD in 2024. The overall trend indicates volatility with peaks and troughs rather than steady growth.
- Cost of Capital
- The cost of capital demonstrated a general downward trend from 8.74% in 2020 to a low of 7.64% in 2023. In 2024, it experienced a slight uptick to 7.85%. This downward movement indicates a reduction in the company's capital costs over most of the period, potentially reflecting more favorable financing conditions or reduced risk perception.
- Invested Capital
- Invested capital exhibited steady growth across the five years. Starting at 152,793 million USD in 2020, it rose each year to reach 194,168 million USD in 2024. The consistent increase suggests ongoing investments in operational assets or business expansion activities, contributing to an expanding capital base.
- Economic Profit
- Economic profit remained negative throughout the period, indicating that the company did not generate returns exceeding its cost of capital. It improved substantially from a large negative value of -5,494 million USD in 2020 to -614 million USD in 2021, reflecting better profitability relative to capital costs. However, this improvement was not sustained; values worsened to -3,669 million USD in 2022 and -2,393 million USD in 2023, before declining again to -4,714 million USD in 2024. This pattern points to challenges in converting invested capital into value beyond the cost of that capital.
Net Operating Profit after Taxes (NOPAT)
General Motors Co., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
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 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =
8 2024 Calculation
Tax benefit of automotive interest expense = Adjusted automotive interest expense × Statutory income tax rate
= × 21.00% =
9 Addition of after taxes interest expense to net income attributable to stockholders.
10 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= × 21.00% =
11 Elimination of after taxes investment income.
The financial performance over the periods shows varying trends in profitability metrics. Net income attributable to stockholders demonstrated a notable increase from 2020 to 2021, rising from 6,427 million US dollars to 10,019 million US dollars. This peak was followed by a slight decline in 2022 to 9,934 million US dollars, then a minor recovery in 2023 to 10,127 million US dollars. However, in 2024, net income decreased significantly to 6,008 million US dollars, indicating a potentially adverse development or external factors affecting profitability in the most recent period.
Net operating profit after taxes (NOPAT) showed an overall upward trend from 2020 to 2021, increasing from 7,866 million US dollars to 13,885 million US dollars, which represents a substantial improvement. NOPAT then declined to 10,217 million US dollars in 2022, suggesting some operational challenges or increased expenses. Following this, there was a recovery to 11,524 million US dollars in 2023, although it did not return to the peak level observed in 2021. In 2024, NOPAT decreased again to 10,525 million US dollars, showing some volatility but maintaining a higher level than the initial 2020 figure.
- Profitability Trends:
- Both net income and NOPAT peaked in 2021, followed by fluctuations in subsequent years, with net income showing a more pronounced decline by 2024.
- Operational Efficiency:
- NOPAT figures suggest the company improved operating profitability significantly in 2021, experienced some operational setbacks in 2022, partial recovery in 2023, and slight decline in 2024.
- Recent Performance:
- The substantial drop in net income in 2024 compared to prior years warrants attention, as it may signal deteriorating profitability or increased costs not fully reflected in operating profit.
Cash Operating Taxes
General Motors Co., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Income Tax Expense
- The income tax expense shows a fluctuating trend over the observed period. It increased significantly from 1,774 million USD in 2020 to 2,771 million USD in 2021. This was followed by a decrease to 1,889 million USD in 2022, then a sharp decline to 563 million USD in 2023. However, in 2024, the expense rose again to 2,556 million USD. This pattern indicates considerable variability in tax liabilities, potentially influenced by changes in taxable income, tax policies, or one-time tax adjustments.
- Cash Operating Taxes
- Cash operating taxes displayed some volatility but less pronounced than income tax expense. Starting at 1,039 million USD in 2020, the amount decreased to 735 million USD in 2021. It then surged to 1,585 million USD in 2022 and remained at a similar level of 1,573 million USD in 2023. In 2024, cash operating taxes declined to 1,174 million USD. The general trend suggests variable cash outflows for taxes, with a peak in 2022 and 2023, possibly reflecting changes in operating earnings, deferred tax adjustments, or cash tax payment timing.
- Comparative Insights
- Throughout the timeline, income tax expense and cash operating taxes do not consistently move in tandem, indicating differences between accounting tax expense recognition and actual cash paid taxes. Notably, the income tax expense experienced more pronounced fluctuations, especially the sharp drop in 2023, which was not as evident in cash operating taxes. This disparity might imply significant deferred tax impacts or adjustments in non-cash tax provisions during these years.
Invested Capital
General Motors Co., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
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.
The financial data reveals several notable trends in the company's capital structure and financing over the five-year period from 2020 to 2024.
- Total Reported Debt & Leases
- This metric shows a steady increase each year, rising from $111,072 million in 2020 to $130,947 million in 2024. The upward trajectory suggests a growing reliance on debt and lease obligations for financing or expansion purposes. The increment from 2023 to 2024 is approximately $8 billion, marking a consistent pattern of debt accumulation.
- Stockholders’ Equity
- Equity levels increased significantly from 2020 to 2022, growing from $45,030 million to a peak of $67,792 million. However, after this peak, equity declined over the next two years, reaching $63,072 million by 2024. This decline may indicate factors such as dividend payouts, share repurchases, or changes in retained earnings impacting the overall equity base.
- Invested Capital
- Invested capital rose steadily year over year, increasing from $152,793 million in 2020 to $194,168 million in 2024. This continuous increase mirrors the company's expanding asset base or operational investments. The growth in invested capital, despite the fluctuations in equity, suggests that the company is leveraging both debt and equity to finance its growth initiatives.
Overall, the data exhibits a pattern of increasing financial leverage accompanied by growth in invested capital. The rise in total reported debt alongside a fluctuating but generally strong equity position indicates a balanced approach toward financing growth, though the recent decrease in equity may warrant further examination to understand its drivers and implications on financial stability.
Cost of Capital
General Motors Co., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 »
Economic Spread Ratio
General Motors Co., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| Economic spread ratio3 | ||||||
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Ford Motor Co. | ||||||
| Tesla Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Economic Profit
- The economic profit exhibits significant fluctuations over the reported periods. Initially, there is a substantial negative value of -5494 million USD in 2020, which improves markedly to -614 million USD in 2021. However, this improvement is not sustained, as economic profit deteriorates again to -3669 million USD in 2022, followed by a slight recovery to -2393 million USD in 2023, before declining again to -4714 million USD in 2024. Overall, the economic profit remains negative throughout the period, indicating ongoing challenges in generating value beyond the cost of capital.
- Invested Capital
- The invested capital shows a consistent and steady increase from 152,793 million USD in 2020 to 194,168 million USD in 2024. This represents an approximate 27% growth over the five-year period, signaling continued investments or asset growth within the company. The rising invested capital, despite negative economic profits, suggests an expansion or reinvestment strategy that has not yet translated into positive returns over the cost of capital.
- Economic Spread Ratio
- The economic spread ratio remains negative throughout the examined years, reflecting the cost of capital exceeding the returns generated by the invested capital. The ratio improves sharply from -3.6% in 2020 to -0.37% in 2021, which aligns with the temporary improvement in economic profit in that year. Nevertheless, after 2021, the economic spread deteriorates again, with values of -2.13% in 2022, -1.31% in 2023, and -2.43% in 2024. This pattern mirrors the volatility in economic profit and indicates persistent difficulties in achieving positive economic margins.
Economic Profit Margin
General Motors Co., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | ||||||
| Automotive net sales and revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted automotive net sales and revenue | ||||||
| Performance Ratio | ||||||
| Economic profit margin2 | ||||||
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Ford Motor Co. | ||||||
| Tesla Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Economic profit. See details »
2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted automotive net sales and revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Economic Profit
- The economic profit values show considerable fluctuations over the five-year period. There was a significant negative economic profit of -5494 million USD in 2020, which improved substantially to -614 million USD in 2021. However, this trend did not sustain, as economic profit worsened again in 2022 to -3669 million USD, and despite some improvement in 2023 (-2393 million USD), it deteriorated further in 2024 to -4714 million USD. Overall, economic profit remained negative throughout the period, indicating persistent challenges in generating value above the cost of capital.
- Adjusted Automotive Net Sales and Revenue
- Adjusted automotive net sales and revenue demonstrated a consistent upward trajectory across the years. Starting at 108,324 million USD in 2020, sales increased steadily, reaching 113,214 million USD in 2021. This growth accelerated in subsequent years, with revenues climbing to 144,545 million USD in 2022, 159,438 million USD in 2023, and peaking at 173,096 million USD in 2024. The sustained sales growth suggests improved market demand or successful expansion strategies.
- Economic Profit Margin
- The economic profit margin, expressed as a percentage, followed a pattern similar to economic profit. It improved markedly from -5.07% in 2020 to -0.54% in 2021, signaling better cost efficiency or profitability. Nevertheless, the margin reversed course in 2022, declining to -2.54%, then slightly recovering to -1.50% in 2023 before dropping again to -2.72% in 2024. Despite the revenue growth, the persistent negative profit margins indicate continued difficulties in translating sales growth into positive economic returns.