General Motors Co. (NYSE:GM)

The financial metrics presented demonstrate varying trends over the five-year period. Generally, adjusted ratios indicate a stronger financial position than reported figures, suggesting the impact of certain accounting adjustments. Several key areas exhibit notable shifts, particularly in profitability and leverage.

Asset Turnover

Both reported and adjusted total asset turnover ratios show an increasing trend from 2021 to 2024, peaking at 0.61 and 0.67 respectively. A slight decrease is then observed in 2025, with the adjusted ratio remaining higher than the reported value throughout the period. This suggests improving efficiency in asset utilization, though the 2025 dip warrants further investigation.

Liquidity

The reported current ratio remains relatively stable around 1.10 for the first three years, with a slight increase to 1.17 by 2025. The adjusted current ratio follows a similar pattern, consistently exceeding the reported ratio and showing a more pronounced increase to 1.31 in 2025. This indicates a generally healthy liquidity position, potentially strengthened by the adjustments.

Leverage

Reported debt to equity and debt to capital ratios generally increase over the period, indicating growing reliance on debt financing. The adjusted debt to equity ratio shows a similar, though less pronounced, trend. Adjusted debt to capital remains relatively stable. Financial leverage, both reported and adjusted, also increases, peaking in 2025, suggesting a higher proportion of debt in the capital structure.

Profitability

Reported net profit margin experiences a significant decline from 8.82% in 2021 to 1.61% in 2025. In contrast, the adjusted net profit margin, while also decreasing, remains substantially higher than the reported margin throughout the period, starting at 15.38% and ending at 5.87%. This substantial difference highlights the significant impact of the adjustments on reported profitability. Both reported and adjusted return on equity (ROE) and return on assets (ROA) follow a similar downward trend, with adjusted values consistently higher, though the gap narrows in later years. The ROA decline is particularly notable, falling to 0.96% reported and 3.85% adjusted by 2025.

In summary, the adjustments consistently present a more favorable financial picture than the reported figures, particularly concerning profitability. While asset utilization and liquidity appear stable or improving, leverage is increasing. The significant decline in reported profitability, contrasted with the more moderate decline in adjusted profitability, suggests the adjustments are mitigating the impact of factors negatively affecting net income.

The adjusted total asset turnover ratio for the period demonstrates a generally increasing trend, indicating improving efficiency in asset utilization. Automotive net sales and revenue, and total assets both increased over the observed period, but the adjusted figures reveal a more pronounced efficiency improvement than the reported figures alone suggest.

Adjusted Total Asset Turnover Trend

The adjusted total asset turnover ratio increased from 0.51 in 2021 to 0.67 in 2024, representing a 31.4% increase. While a slight decrease to 0.66 is observed in 2025, the ratio remains significantly higher than the initial value. This suggests that the company is generating more sales revenue for each dollar of assets employed, after adjustments are made.

Relationship to Automotive Net Sales and Revenue

Adjusted automotive net sales and revenue increased from US$113,214 million in 2021 to US$173,096 million in 2024, before decreasing slightly to US$169,708 million in 2025. The growth in sales revenue contributes to the increasing asset turnover, but the rate of increase in the turnover ratio is greater than the rate of increase in sales, indicating that asset management is also improving.

Relationship to Adjusted Total Assets

Adjusted total assets increased from US$223,758 million in 2021 to US$258,820 million in 2024, with a marginal decrease to US$258,568 million in 2025. The growth in assets is moderate compared to the growth in sales, which supports the observed increase in the adjusted total asset turnover ratio. The relatively stable asset base in the final two years further contributes to maintaining a higher turnover.

Comparison to Reported Total Asset Turnover

The reported total asset turnover ratio also shows an increasing trend, but the magnitude of the increase is less pronounced than that of the adjusted ratio. This difference suggests that the adjustments made to net sales and total assets have a material impact on the assessment of asset utilization efficiency. The adjusted ratio provides a potentially more accurate representation of operational performance.

In summary, the adjusted total asset turnover ratio indicates improving efficiency in asset utilization over the period. The company appears to be effectively managing its assets to generate increased sales revenue, and the adjustments made to the financial figures provide a more detailed view of this trend.

The adjusted current ratio exhibited fluctuations over the five-year period, generally trending upwards. While initial values suggest a healthy liquidity position, variations warrant further examination. A comparison with the reported current ratio reveals the impact of adjustments made to both current assets and current liabilities.

Adjusted Current Ratio - Overall Trend

The adjusted current ratio began at 1.21 in 2021, decreased to 1.18 in 2022, and then experienced a slight decline to 1.15 in 2023. A subsequent increase was observed in 2024, reaching 1.23, followed by a more substantial rise to 1.31 in 2025. This indicates improving liquidity as the period progresses.

Adjusted Current Ratio - Comparison to Reported Ratio

The adjusted current ratio consistently exceeded the reported current ratio across all years. The difference between the two ratios suggests that the adjustments to current assets and liabilities positively impacted the assessment of short-term liquidity. The magnitude of this difference varied, with the largest gap observed in 2021 and 2025.

Adjusted Current Assets & Liabilities - Contribution to Ratio

Adjusted current assets demonstrated a consistent upward trend, increasing from US$82,295 million in 2021 to US$109,011 million in 2025. Adjusted current liabilities also increased over the period, but at a slower rate, rising from US$68,178 million to US$83,084 million. The faster growth in adjusted current assets relative to adjusted current liabilities contributed to the overall improvement in the adjusted current ratio.

The observed increases in both adjusted current assets and adjusted current liabilities suggest overall growth in working capital. However, the more pronounced growth in assets indicates a strengthening ability to cover short-term obligations, as reflected in the rising adjusted current ratio. The adjustments made to the initially reported figures appear to provide a more favorable view of the company’s short-term financial health.

The information presents a five-year trend of debt and equity figures, culminating in adjusted debt-to-equity ratios. Total debt consistently increased from 2021 to 2025, while stockholders’ equity exhibited more fluctuation. The adjusted figures show a similar pattern, though with slight differences in magnitude. Overall, the adjusted debt-to-equity ratio demonstrates a generally increasing trend, with some moderation in the final year presented.

Total Debt and Stockholders’ Equity

Total debt increased steadily over the period, rising from US$109,379 million in 2021 to US$130,277 million in 2025, representing a cumulative increase of approximately 19.1%. Stockholders’ equity increased from 2021 to 2022, peaking at US$67,792 million, but subsequently declined through 2025, ending at US$61,119 million. This represents an overall decrease of approximately 9.8% from its 2022 high.

Reported Debt-to-Equity Ratio

The reported debt-to-equity ratio began at 1.83 in 2021, decreased to 1.69 in 2022, and then increased consistently through 2025, reaching 2.13. This indicates a growing reliance on debt financing relative to equity over the latter part of the observed period.

Adjusted Debt-to-Equity Ratio

The adjusted debt-to-equity ratio mirrored the trend of the reported ratio, starting at 1.81 in 2021 and increasing to 1.97 in 2024. However, in 2025, the ratio decreased slightly to 1.89. The adjustments to total debt and equity appear to moderate the magnitude of the ratio changes compared to the reported figures, but do not alter the overall upward trend. The adjustments consistently result in a slightly lower ratio than the reported figures.

The consistent increase in debt, coupled with the fluctuating and ultimately declining equity, suggests a potential shift in the capital structure towards greater leverage. The slight decrease in the adjusted debt-to-equity ratio in 2025 may indicate a stabilization or a minor improvement in the balance between debt and equity, but further observation is needed to confirm this trend.

The information presents a five-year trend of debt and capital figures, culminating in adjusted debt-to-capital ratios. Total debt exhibits a consistent upward trajectory, increasing from US$109,379 million in 2021 to US$130,277 million in 2025. Total capital also generally increases over the period, moving from US$169,123 million in 2021 to US$191,396 million in 2025, though the rate of increase appears to slow in the final year.

Reported Debt to Capital

The reported debt-to-capital ratio demonstrates relative stability, fluctuating between 0.63 and 0.68 over the five-year period. An initial decrease from 0.65 in 2021 to 0.63 in 2022 is followed by a gradual increase, reaching 0.68 in 2025. This suggests a balanced relationship between debt and capital, with minor shifts in leverage.

Adjusted Total Debt

Adjusted total debt mirrors the trend of total debt, increasing steadily from US$110,595 million in 2021 to US$131,578 million in 2025. The adjusted figures are consistently higher than the reported total debt, indicating the presence of adjustments that increase the reported debt value.

Adjusted Total Capital

Adjusted total capital also shows an increasing trend, rising from US$171,821 million in 2021 to US$201,240 million in 2025. Similar to total capital, the growth rate appears to decelerate in the final year. The adjusted capital figures are consistently higher than the reported total capital, suggesting adjustments that increase the capital base.

Adjusted Debt to Capital

The adjusted debt-to-capital ratio remains relatively stable, ranging from 0.63 to 0.66 throughout the observed period. It begins at 0.64 in 2021, dips to 0.63 in 2022, then increases to 0.66 in 2024 before settling at 0.65 in 2025. This indicates that, despite increases in both adjusted debt and adjusted capital, the company maintains a consistent level of financial leverage when considering the adjustments made to both components.

Overall, the trends suggest a growing company with a relatively stable capital structure, even after adjustments are considered. The slight deceleration in capital growth in the final year warrants further investigation to determine its potential implications.

The financial leverage metrics exhibit a nuanced pattern over the five-year period. While reported financial leverage generally increased, adjusted financial leverage demonstrates a more stable profile with a slight downward trend in the later years.

Total Assets & Equity

Total assets increased consistently from 2021 to 2025, growing from US$244,718 million to US$281,284 million. Stockholders’ equity also increased initially, peaking at US$67,792 million in 2022, but subsequently declined to US$61,119 million by 2025. This suggests a shift in the company’s capital structure, with asset growth outpacing equity growth in the latter part of the period.

Reported Financial Leverage

Reported financial leverage, calculated as total assets divided by stockholders’ equity, began at 4.10 in 2021. It decreased to 3.89 in 2022, then increased steadily to 4.60 in 2025. This indicates a growing reliance on debt or other non-equity financing relative to equity over the observed timeframe.

Adjusted Total Assets & Equity

Adjusted total assets also increased over the period, though at a slower rate than reported total assets, moving from US$223,758 million to US$258,568 million. Adjusted total equity mirrored the trend of reported equity, with an initial increase followed by a decline, ultimately reaching US$69,662 million in 2025. The difference between reported and adjusted figures suggests the presence of items impacting the reported values that are excluded in the adjusted calculations.

Adjusted Financial Leverage

Adjusted financial leverage, calculated using the adjusted figures, started at 3.65 in 2021 and decreased to 3.60 in 2022. It then experienced a moderate increase to 3.90 in 2024 before decreasing slightly to 3.71 in 2025. This suggests that, when considering the adjustments made to the asset and equity values, the company’s leverage position remained relatively stable, with a slight improvement in the final year. The difference between the reported and adjusted leverage ratios highlights the impact of the adjustments on the overall leverage assessment.

In summary, while reported leverage increased, adjusted leverage remained more contained, indicating that the adjustments to assets and equity have a material effect on the leverage profile. The divergence between the two metrics warrants further investigation into the nature of the adjustments and their implications for the company’s financial risk.

The adjusted net profit margin exhibited considerable fluctuation over the five-year period. Initially strong, the metric experienced a decline before stabilizing and showing a modest increase in the final year. A detailed examination of the trends reveals key insights into the company’s profitability performance.

Overall Trend

The adjusted net profit margin began at 15.38% in 2021, representing a high level of profitability. A substantial decrease was observed in 2022, falling to 7.66%. This downward trend continued into 2023, reaching 5.82%. While a slight recovery occurred in 2024 with a margin of 5.38%, the metric demonstrated renewed growth in 2025, increasing to 5.87%.

Comparison to Reported Net Profit Margin

The adjusted net profit margin consistently exceeded the reported net profit margin across all observed years. The difference between the two metrics suggests the presence of significant adjustments impacting the reported figures. The reported net profit margin declined more sharply than the adjusted margin, falling from 8.82% in 2021 to 1.61% in 2025, indicating that adjustments played a crucial role in maintaining a higher profitability representation.

Revenue Correlation

Adjusted automotive net sales and revenue generally increased from 2021 to 2024, moving from US$113,214 million to US$173,096 million. However, revenue experienced a slight decrease in 2025, settling at US$169,708 million. Despite the revenue increase between 2021 and 2024, the adjusted net profit margin did not follow a corresponding upward trajectory, suggesting that increased costs or other factors offset the benefits of higher sales. The stabilization of the margin in 2025, despite a slight revenue decline, could indicate improved cost management or pricing strategies.

Profitability Levels

While the adjusted net profit margin experienced volatility, it remained above 5% in the latter three years of the period. The initial high of 15.38% in 2021 represents a period of particularly strong profitability. The subsequent decline warrants further investigation into the underlying causes, such as increased operating expenses, changes in product mix, or competitive pressures. The final year’s margin of 5.87% suggests a potential stabilization of profitability following the earlier declines.

In summary, the adjusted net profit margin demonstrates a complex pattern of fluctuation. While initially strong, the metric experienced a period of decline before showing signs of stabilization and modest improvement. The consistent difference between adjusted and reported margins highlights the importance of considering adjustments when evaluating the company’s financial performance.

The reported return on equity (ROE) demonstrates a declining trend over the five-year period. Initially strong at 16.77% in 2021, it decreased to 4.41% by 2025. However, the adjusted ROE presents a different picture, exhibiting more stability despite fluctuations. A detailed examination of the adjusted figures reveals key insights into the company’s performance.

Adjusted Return on Equity (ROE) Trend

The adjusted ROE began at a high of 28.43% in 2021, representing a substantial difference from the reported ROE. It then decreased to 16.32% in 2022, followed by a further decline to 14.31% in 2023. From 2023 to 2025, the adjusted ROE remained relatively stable, fluctuating between 14.02% and 14.30%. This suggests that adjustments to net income and total equity have a significant impact on the overall ROE calculation and contribute to a more consistent performance metric than the reported ROE.

Net Income and Adjusted Net Income Comparison

While net income attributable to stockholders decreased significantly from US$10,019 million in 2021 to US$2,697 million in 2025, the adjusted net income remained comparatively higher throughout the period. The difference between reported and adjusted net income was most pronounced in 2021 and 2022, indicating substantial adjustments were made in those years. The adjusted net income shows a less dramatic decline, ending at US$9,959 million in 2025, suggesting the adjustments mitigate the impact of certain accounting treatments or non-recurring items.

Equity Analysis

Stockholders’ equity increased from US$59,744 million in 2021 to US$67,792 million in 2022, before decreasing to US$61,119 million in 2025. Adjusted total equity mirrored this trend, starting at US$61,226 million in 2021, peaking at US$67,804 million in 2022, and ending at US$69,662 million in 2025. The adjusted equity consistently exceeded the reported equity, indicating that adjustments were made to increase the equity base. The relatively stable adjusted equity base, even as reported equity declined, likely contributes to the stability observed in the adjusted ROE.

In summary, the adjusted ROE provides a more stable view of the company’s profitability relative to equity compared to the reported ROE. The adjustments made to both net income and total equity appear to smooth out fluctuations and offer a potentially more representative measure of underlying performance. The consistent difference between reported and adjusted figures warrants further investigation into the nature of these adjustments.

The reported return on assets (ROA) demonstrates a consistent decline over the five-year period, decreasing from 4.09% in 2021 to 0.96% in 2025. This indicates a diminishing ability to generate profit from its asset base when considering reported figures. However, the adjusted ROA presents a different picture, exhibiting more stability despite fluctuations.

Adjusted Return on Assets (ROA) Trend

The adjusted ROA begins at a significantly higher level of 7.78% in 2021, then decreases to 4.54% in 2022. Following this initial decline, the adjusted ROA stabilizes, fluctuating between 3.60% and 3.85% from 2023 through 2025. This suggests that adjustments made to net income and total assets mitigate the downward trend observed in the reported ROA.

A substantial difference exists between the reported and adjusted ROA values. The adjustments consistently result in a higher ROA, indicating that certain items are impacting the reported net income and asset base. The magnitude of this difference varies year to year, but is consistently significant.

Net Income and Asset Adjustments

Adjusted net income is consistently higher than reported net income attributable to stockholders, particularly in 2021 and 2022. This suggests the presence of non-recurring items or accounting adjustments that reduce reported earnings. Adjusted total assets are consistently lower than reported total assets, indicating that certain asset values are being adjusted downwards. These adjustments collectively contribute to the higher adjusted ROA.

While the reported ROA shows a clear negative trend, the adjusted ROA demonstrates a more stable performance. The adjustments appear to smooth out fluctuations and provide a potentially more representative view of underlying profitability relative to the adjusted asset base. The stabilization of the adjusted ROA in the later years of the period may indicate the effectiveness of implemented adjustments or a shift in the underlying business performance.

Year-over-Year Changes in Adjusted ROA

The largest year-over-year decrease in adjusted ROA occurs between 2021 and 2022, falling by 3.24 percentage points. Subsequent changes are less dramatic, with a decrease of 0.84 percentage points between 2022 and 2023, a slight increase of 0.10 percentage points between 2023 and 2024, and a further increase of 0.25 percentage points between 2024 and 2025. This suggests that the most significant impacts on profitability occurred earlier in the period, with more recent performance showing relative stability.