General Motors Co. (NYSE:GM)

Asset Turnover Ratios

The reported total asset turnover demonstrated a steady upward trend from 0.46 in 2020 to 0.61 in 2024, indicating improved efficiency in generating sales from assets. Similarly, the adjusted total asset turnover ratio increased consistently from 0.51 to 0.67 over the same period, reinforcing the enhancement in asset utilization.

Liquidity Ratios

The reported current ratio showed slight fluctuation, initially rising from 1.01 in 2020 to 1.10 in 2021 and maintained around that level, ending at 1.13 in 2024. The adjusted current ratio followed a similar pattern but remained at generally higher levels, fluctuating between 1.10 and 1.23. Both measures suggest a stable to slightly improving short-term liquidity position.

Leverage Ratios

Reported debt to equity ratio decreased significantly from 2.44 in 2020 to 1.69 in 2022, before increasing again to 2.06 in 2024. The adjusted debt to equity mirrored this pattern with a decline followed by a partial rebound. Debt to capital ratios both reported and adjusted followed a more muted decline through 2022, then a slight increase afterwards. Financial leverage dropped from high levels in 2020 to a trough around 2022–2023, then edged upwards but remained below initial levels. These trends indicate an initial reduction in leverage followed by moderate increases more recently.

Profitability Margins

The reported net profit margin increased notably from 5.91% in 2020 to a peak of 8.82% in 2021, then gradually declined to 3.5% by 2024. Adjusted net profit margin showed more volatility, peaking sharply at 15.38% in 2021 but falling to 5.38% in 2024. This suggests profit margins experienced significant improvement early in the period but faced downward pressure in the later years.

Return Measures

Reported return on equity (ROE) increased from 14.27% in 2020 to 16.77% in 2021, then oscillated, ending at a lower figure of 9.53% in 2024. Adjusted ROE showed a similar pattern but with a higher peak of 28.43% in 2021 and a relatively stable ending level near 14.02%. Reported return on assets (ROA) rose from 2.73% to 4.09% in 2021 but declined later, reaching 2.15% in 2024. Adjusted ROA followed a similar trajectory with a peak of 7.78% in 2021 and a more moderate decline thereafter. These trends reflect marked improvements in profitability and asset efficiency in early years, followed by a waning trend in more recent periods.

Overall Analysis

The data reveals a period of significant operational improvement and financial strength around 2021, characterized by increased asset turnover, liquidity, reduced leverage, and higher profitability margins and returns. However, from 2022 onwards, many performance indicators show a reversal or plateau, indicating emerging pressures or a normalization effect. Leverage ratios increased moderately after previously declining, and profitability and returns showed downward trends, suggesting challenges impacting earnings quality or efficiency. Liquidity remained stable overall, indicating continued management of short-term obligations despite these shifts.

Automotive Net Sales and Revenue

The automotive net sales and revenue show a steady upward trend over the five-year period. Beginning at approximately $108.7 billion in 2020, the figure increases annually, reaching around $171.6 billion by 2024. This represents a notable growth trajectory, indicating an expanding market presence or improving sales performance.

Total Assets

Total assets have increased consistently from 2020 through 2024, rising from $235.2 billion to $279.8 billion. The growth in total assets is moderate compared to the increase in net sales and revenue, suggesting an efficient utilization of assets in supporting revenue generation.

Reported Total Asset Turnover

The reported total asset turnover ratio improves steadily across the years, from 0.46 in 2020 and 2021 to 0.61 by 2024. This ratio measures the efficiency of using assets to generate sales, and the upward trend indicates enhanced operational efficiency and better asset management over time.

Adjusted Automotive Net Sales and Revenue

Adjusted automotive net sales and revenue, which likely account for certain non-recurring items or adjustments, exhibit a parallel growth pattern consistent with the unadjusted figures. Starting at approximately $108.3 billion in 2020, adjusted sales increase to about $173.1 billion by 2024, reinforcing the positive sales momentum.

Adjusted Total Assets

The adjusted total assets also increase steadily from $211.3 billion in 2020 to $258.8 billion in 2024. The adjusted figures are consistently lower than the reported totals, which may reflect the exclusion of certain asset categories or revaluations.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio rises from 0.51 in 2020 and 2021 to 0.67 in 2024. This indicates an enhanced ability to generate sales from the adjusted asset base, with steady improvement over the period considered.

The financial data indicates that both current assets and current liabilities have generally increased over the five-year period from 2020 to 2024.

Current Assets

Current assets rose from US$80,924 million in 2020 to US$108,545 million in 2024, marking a steady increase throughout the period. Notably, a significant jump occurred between 2021 and 2022, where the assets increased by over US$18 billion, followed by more moderate growth in subsequent years.

Current Liabilities

Current liabilities showed a less consistent pattern but overall increased from US$79,910 million in 2020 to US$96,265 million in 2024. After a decline in 2021 compared to 2020, liabilities rose substantially in 2022 and continued to grow, albeit at a slower pace, through 2023 and 2024.

Reported Current Ratio

The reported current ratio improved modestly from 1.01 in 2020 to 1.13 in 2024, indicating a slight enhancement in short-term liquidity. The ratio remained stable at 1.1 for 2021 and 2022, dipped marginally to 1.08 in 2023, then increased again in 2024.

Adjusted Current Assets

Adjusted current assets mirrored the trend in current assets, increasing from US$81,148 million in 2020 to US$108,858 million in 2024. The pattern shows consistent growth year-over-year, with the most pronounced rise occurring between 2021 and 2022.

Adjusted Current Liabilities

Adjusted current liabilities decreased initially, from US$73,730 million in 2020 to US$68,178 million in 2021, and then increased substantially to US$85,642 million in 2022. Following that, liabilities rose slightly to US$88,358 million in 2023 but decreased minimally to US$88,339 million in 2024, indicating stabilization after the 2022 increase.

Adjusted Current Ratio

The adjusted current ratio showed a positive trend from 1.10 in 2020 to 1.23 in 2024. This ratio peaked at 1.21 in 2021, slightly declined to 1.18 in 2022 and 1.15 in 2023, before increasing again in 2024. This suggests an overall strengthening of the company’s adjusted short-term liquidity position, despite minor fluctuations in the middle years.

Overall, the data reflects a general improvement in liquidity, particularly when considering the adjusted figures. The upward movement in current and adjusted current ratios suggests enhanced capacity to cover short-term obligations, supported by consistent growth in current assets. However, the increase in liabilities, notably in 2022, suggests an elevated financial obligation that slightly tempered liquidity ratios during that period. The adjusted ratios consistently show a stronger liquidity position than the reported ratios, indicating that adjustments lead to a more favorable interpretation of financial health over the time frame examined.

The financial data reveals several key trends in the company's capital structure over the analyzed five-year period.

Total Debt

The total debt shows a consistent upward trend, increasing from approximately $109.9 billion in 2020 to about $129.7 billion in 2024. This steady increase indicates a growing reliance on debt financing over the years.

Stockholders' Equity

Stockholders’ equity increased significantly from around $45 billion in 2020 to a peak of approximately $67.8 billion in 2022. However, it declined thereafter to approximately $63 billion by 2024, showing some erosion in equity base in the latter years.

Reported Debt to Equity Ratio

The reported debt to equity ratio decreased from 2.44 in 2020 to 1.69 in 2022, reflecting a strengthening equity position relative to debt during that period. From 2022 onwards, the ratio increased again, reaching 2.06 in 2024, suggesting increased leverage or reduced equity relative to debt in recent years.

Adjusted Total Debt

Adjusted total debt follows a similar pattern to total debt, rising steadily from approximately $111.1 billion in 2020 to roughly $131 billion in 2024, confirming the overall trend of increasing debt levels.

Adjusted Total Equity

Adjusted total equity increased significantly from about $40.9 billion in 2020 to a high of approximately $67.8 billion in 2022. Following this, a slight decline is observed, with adjusted equity around $66.4 billion in 2024, indicating a somewhat more stable equity position compared to reported equity but still showing signs of recent weakening.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased notably from 2.72 in 2020 to 1.71 in 2022, highlighting an improvement in capital structure. However, it rose again to 1.97 by 2024, indicating that adjusted leverage increased after 2022, although it remained lower than the initial 2020 level.

Overall, the company demonstrates an increasing debt burden over the five-year span, with growth in both reported and adjusted total debt. Equity values strengthened until 2022, after which a decline is evident, leading to increased leverage ratios. The capital structure appears to have tightened post-2022, reflecting heightened financial risk through greater reliance on debt relative to equity.

The analysis of the annual financial data reveals several significant trends in the company’s debt and capital structure over the five-year period.

Total Debt and Capital

Total debt consistently increased from US$109,894 million in 2020 to US$129,732 million in 2024, indicating a steady rise in borrowing or liabilities over the period.

Total capital also exhibited growth, from US$154,924 million in 2020 to US$192,804 million in 2024, reflecting an overall expansion of the company's capital base.

Debt to Capital Ratios (Reported and Adjusted)

The reported debt to capital ratio decreased from 0.71 in 2020 to a low of 0.63 in 2022 before slightly increasing to 0.67 by 2024, suggesting improved leverage efficiency followed by a modest increase in debt reliance.

The adjusted debt to capital ratio mirrors this trend, dropping from 0.73 in 2020 to 0.63 in 2022 and then rising modestly to 0.66 in 2024, indicating adjustments made to debt and capital components still reflect the same overall leverage dynamics.

Adjusted Debt and Capital

Adjusted total debt values follow a pattern similar to reported total debt, increasing steadily from US$111,072 million in 2020 to US$130,947 million in 2024, consistent with the underlying growth in liabilities or financial obligations after adjustment.

Adjusted total capital increased from US$151,932 million in 2020 to US$197,356 million in 2024, showing a steady rise even greater than that of adjusted debt, which supports the decline in leverage ratios observed initially.

Overall, the upward trend in both debt and capital levels suggests an expansionary phase, with capital growth outpacing debt growth initially, leading to improved leverage ratios until 2022. However, post-2022, an increase in leverage is observable, reflecting either increased borrowing or slower capital formation relative to debt. The minor divergence between reported and adjusted figures indicates that adjustments have not significantly changed the overall financial structure interpretation.

Total assets

Total assets exhibited a consistent upward trend from 2020 to 2024, increasing from $235,194 million in 2020 to $279,761 million in 2024. This steady growth across the five-year period indicates ongoing asset accumulation by the company.

Stockholders’ equity

Stockholders’ equity showed significant growth from 2020 to 2022, rising from $45,030 million to $67,792 million. However, after peaking in 2022, equity decreased slightly in 2023 to $64,286 million and further declined to $63,072 million in 2024. This suggests some pressure on equity levels in the most recent periods following earlier expansion.

Reported financial leverage (ratio)

The reported financial leverage ratio decreased markedly from 5.22 in 2020 to 3.89 in 2022, reflecting a reduction in reliance on debt or liabilities relative to equity. Yet, after 2022, the ratio reversed course, increasing to 4.25 in 2023 and 4.44 in 2024, indicating that leverage strengthened again in the latter years.

Adjusted total assets

Adjusted total assets followed a pattern similar to total assets overall, growing from $211,282 million in 2020 to $258,820 million in 2024. The steady increase suggests consistent asset growth even when adjustments are taken into account.

Adjusted total equity

Adjusted total equity rose significantly from $40,860 million in 2020 to $67,804 million in 2022, then experienced a decline to $64,849 million in 2023 before rising slightly again to $66,409 million in 2024. This pattern mirrors the behavior of reported equity, indicating some volatility in equity measures after initial growth.

Adjusted financial leverage (ratio)

Adjusted financial leverage decreased from 5.17 in 2020 to 3.60 in 2022, which is consistent with reduced leverage and improved equity relative to assets. However, the leverage ratio rose again to 3.87 in 2023 and marginally increased to 3.90 in 2024, signalling a modest increase in leverage in recent periods.

The financial data reveals several notable trends over the five-year period ending December 31, 2024. Net income attributable to stockholders exhibited strong growth from 2020 through 2021, peaking in 2021 before experiencing some fluctuations. Specifically, net income rose sharply from 6,427 million US dollars in 2020 to 10,019 million in 2021, slightly declined to 9,934 million in 2022, increased marginally to 10,127 million in 2023, and then decreased significantly to 6,008 million in 2024.

Automotive net sales and revenue showed a consistent upward trajectory throughout the period. Starting at 108,673 million US dollars in 2020, this figure rose steadily each year, culminating in 171,606 million in 2024. The growth rate accelerated notably from 2021 onward, with substantial increases between 2021 and 2022 and continuing strong gains through to 2024.

The reported net profit margin followed a pattern that initially improved markedly from 5.91% in 2020 to 8.82% in 2021, indicating enhanced profitability relative to sales. However, this margin declined in subsequent years, slipping to 6.9% in 2022, then to 6.42% in 2023, and ultimately dropping sharply to 3.5% in 2024, signaling reduced efficiency in converting revenue into profit during the latter part of the period.

Adjusted net income displayed a different trajectory compared to the reported net income, with an especially strong increase in 2021, reaching 17,409 million US dollars. This peak was followed by a decline to 11,067 million in 2022, continued reduction to 9,277 million in 2023, and a stabilization around 9,308 million in 2024. This suggests significant adjustments impacting profitability, particularly in 2021, and subsequent normalization in later years.

Adjusted automotive net sales and revenue data closely mirrors the overall automotive net sales figures but are consistently slightly lower. These adjusted sales began at 108,324 million US dollars in 2020 and increased steadily each year, reaching 173,096 million in 2024, underscoring a robust growth trend in sales on an adjusted basis.

The adjusted net profit margin shows considerable variation over the years, increasing sharply from 4.48% in 2020 to 15.38% in 2021, reflecting a surge in profitability adjustments. However, this margin sharply decreased to 7.66% in 2022 and continued on a downward trend to 5.82% in 2023 and 5.38% in 2024. Despite the decline, the adjusted margin remains higher than the reported net profit margin in the later years, suggesting that adjustments have a notable impact on the perceived profitability.

Summary of key observations:

- Net income exhibited significant volatility with a peak in 2021, followed by a decline in 2024.

- Revenues demonstrated consistent and strong growth across all periods.

- Profit margins, both reported and adjusted, rose sharply in 2021 but declined thereafter, with reported margins falling more steeply.

- Adjusted figures show more pronounced profitability peaks and subsequent normalization, indicating considerable impacts from non-recurring or one-time adjustments.

- The divergence between reported and adjusted margins signals important factors affecting the company’s core profitability assessments.

The financial data reveals several notable trends in profitability and equity measures over the five-year period.

Net Income Attributable to Stockholders

The net income showed significant growth from 2020 to 2021, increasing from 6,427 million USD to 10,019 million USD. This strong performance was maintained in 2022 and 2023, with a slight fluctuation but staying around the 9,900 to 10,100 million USD range. However, 2024 experienced a considerable decline, dropping to 6,008 million USD, signaling a potential challenge or change in operating conditions affecting profitability.

Stockholders’ Equity

There was consistent growth in stockholders’ equity from 2020 (45,030 million USD) through 2022 (67,792 million USD), suggesting accumulation of retained earnings or equity financing activities. Equity slightly decreased in 2023 to 64,286 million USD and dipped further in 2024 to 63,072 million USD, indicating either capital distributions, losses, or other equity adjustments during these later years.

Reported Return on Equity (ROE)

The reported ROE increased from 14.27% in 2020 to a peak of 16.77% in 2021, followed by a decrease to 14.65% in 2022. It rebounded slightly in 2023 to 15.75%, but fell sharply to 9.53% in 2024. This decline in 2024 aligns with the decrease in net income and stockholders’ equity, reflecting reduced profitability relative to equity invested.

Adjusted Net Income

Adjusted net income exhibited a substantial jump in 2021 to 17,409 million USD from 4,848 million USD in 2020, suggesting the exclusion of certain one-time or non-recurring items boosted the adjusted figure. It then declined over the next three years to stabilize around 9,300 million USD in 2024. The peak and subsequent decline point to volatility in adjustments or operational outcomes impacting underlying profitability.

Adjusted Total Equity

Adjusted total equity followed a generally upward trajectory from 40,860 million USD in 2020 to 67,804 million USD in 2022. A minor decrease occurred in 2023 (64,849 million USD), but it increased slightly again in 2024 to 66,409 million USD, indicating a relatively more stable adjusted equity base compared to reported figures.

Adjusted Return on Equity (ROE)

The adjusted ROE mirrored the pattern of adjusted net income, surging from 11.86% in 2020 to 28.43% in 2021, then declining steadily over the next three years to 14.02% in 2024. Despite the drop, the adjusted ROE remained above the 2020 baseline, suggesting that, when excluding certain items, profitability adjusted for equity remains relatively solid, though the peak in 2021 was an outlier.

Overall, the data reflect strong financial performance in 2021, characterized by peaks in income and returns, followed by a normalization or decline in subsequent years, particularly evident in 2024. The decreases in net income and equity in the most recent year warrant further investigation into underlying causes. Adjusted figures indicate some volatility but suggest a more stable long-term profitability trend excluding irregular items.

The financial data exhibits notable trends and fluctuations over the examined periods.

Net income attributable to stockholders

The net income increased significantly from 6,427 million US dollars in 2020 to a peak of 10,127 million US dollars in 2023. However, there was a marked decline in 2024, where net income dropped to 6,008 million US dollars.

Total assets

Total assets showed consistent growth throughout the period, rising from 235,194 million US dollars in 2020 to 279,761 million US dollars in 2024. This steady increase indicates ongoing asset accumulation or investment.

Reported Return on Assets (ROA)

Reported ROA improved from 2.73% in 2020 to a high of 4.09% in 2021, followed by a gradual decline over subsequent years to 2.15% in 2024. This suggests that asset profitability peaked early in the period but weakened later.

Adjusted net income

The adjusted net income showed substantial volatility, peaking sharply at 17,409 million US dollars in 2021, then declining to 9,277 million US dollars in 2023, and stabilizing slightly to 9,308 million US dollars in 2024. This pattern reflects underlying adjustments impacting profitability measures distinctly from the reported net income.

Adjusted total assets

Adjusted total assets increased steadily from 211,282 million US dollars in 2020 to 258,820 million US dollars in 2024, maintaining a consistent upward trajectory similar to total assets but on a slightly lower base.

Adjusted Return on Assets (ROA)

Adjusted ROA experienced a peak at 7.78% in 2021, then declined to approximately 3.6% by 2024, indicating a decrease in efficiency or profitability relative to the adjusted asset base after 2021, with a relatively stable trend during the last two years.

Overall, the data indicates a period of growth in asset size but fluctuating profitability margins. The peak in adjusted figures occurred in 2021, after which returns on assets and income showed a declining trend, suggesting challenges in maintaining earlier levels of profitability despite growing assets.