Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
General Motors Co., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.17 | 1.13 | 1.08 | 1.10 | 1.10 | |
| Quick ratio | 0.92 | 0.90 | 0.83 | 0.86 | 0.84 | |
| Cash ratio | 0.30 | 0.28 | 0.28 | 0.34 | 0.39 |
Based on: 10-K (reporting date: 2025-12-31), 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).
The liquidity position, as indicated by the assessed ratios, demonstrates a generally stable trend with some nuanced shifts over the five-year period. Overall, the company maintains a reasonable ability to meet its short-term obligations, though certain aspects warrant closer observation.
- Current Ratio
- The current ratio remained relatively consistent between 2021 and 2023, fluctuating around 1.10. A slight increase is observed in 2024, reaching 1.13, and continues to improve in 2025, reaching 1.17. This suggests a gradual strengthening of the company’s ability to cover its current liabilities with current assets.
- Quick Ratio
- The quick ratio exhibits a similar pattern of stability with a modest upward trend. It increased from 0.84 in 2021 to 0.86 in 2022, experienced a slight dip to 0.83 in 2023, and then rose to 0.90 in 2024 and 0.92 in 2025. This indicates an improving capacity to meet short-term obligations with the most liquid assets, excluding inventory.
- Cash Ratio
- The cash ratio demonstrates a declining trend from 2021 to 2023, decreasing from 0.39 to 0.28. The ratio stabilizes in 2024 at 0.28 and shows a slight recovery to 0.30 in 2025. This suggests a decreasing proportion of current assets held as cash, potentially indicating investment in other areas or utilization of cash for operational needs. While still representing a portion of immediate liquidity, the decreasing trend requires monitoring.
In summary, the company’s liquidity appears to be generally healthy and improving, as evidenced by the stable to increasing current and quick ratios. The cash ratio’s decline, while not immediately alarming, should be monitored to ensure sufficient cash reserves are maintained for unforeseen circumstances or strategic opportunities.
Current Ratio
General Motors Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 108,767) | 108,545) | 101,618) | 100,451) | 82,103) | |
| Current liabilities | 93,342) | 96,265) | 94,445) | 91,173) | 74,408) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.17 | 1.13 | 1.08 | 1.10 | 1.10 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Ford Motor Co. | — | 1.16 | 1.20 | 1.20 | 1.20 | |
| Tesla Inc. | — | 2.02 | 1.73 | 1.53 | 1.38 | |
| Current Ratio, Sector | ||||||
| Automobiles & Components | — | 1.26 | 1.21 | 1.20 | 1.18 | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | — | 1.22 | 1.20 | 1.15 | 1.25 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 108,767 ÷ 93,342 = 1.17
2 Click competitor name to see calculations.
The current ratio exhibited relative stability over the five-year period, with fluctuations indicating minor shifts in the company’s short-term liquidity position. Initial values were consistent, followed by a slight decline and subsequent improvement.
- Current Ratio Trend
- The current ratio began at 1.10 in 2021 and remained at that level through 2022. A slight decrease to 1.08 was observed in 2023, representing the lowest value within the observed timeframe. The ratio then increased to 1.13 in 2024 and further to 1.17 in 2025, indicating an improving liquidity position in the latter years.
The underlying components driving this trend – current assets and current liabilities – also demonstrate patterns. Current assets increased from US$82,103 million in 2021 to US$108,767 million in 2025, while current liabilities also rose, but at a slower pace, from US$74,408 million to US$93,342 million over the same period. The combined effect of these movements contributed to the observed fluctuations in the current ratio.
- Asset and Liability Relationship
- The increase in both current assets and current liabilities suggests overall business growth. However, the faster growth rate of assets relative to liabilities in 2024 and 2025 contributed to the improvement in the current ratio during those years. The slight dip in the ratio in 2023 coincided with a relatively larger increase in current liabilities compared to current assets.
Overall, the current ratio indicates a generally healthy short-term liquidity position throughout the period. The recent upward trend suggests a strengthening ability to meet short-term obligations with current assets.
Quick Ratio
General Motors Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 20,945) | 19,872) | 18,853) | 19,153) | 20,067) | |
| Marketable debt securities | 6,724) | 7,265) | 7,613) | 12,150) | 8,609) | |
| Accounts and notes receivable, net of allowance | 13,054) | 12,827) | 12,378) | 13,333) | 7,394) | |
| GM Financial receivables, net of allowance | 45,266) | 46,362) | 39,076) | 33,623) | 26,649) | |
| Total quick assets | 85,989) | 86,326) | 77,920) | 78,259) | 62,719) | |
| Current liabilities | 93,342) | 96,265) | 94,445) | 91,173) | 74,408) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.92 | 0.90 | 0.83 | 0.86 | 0.84 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Ford Motor Co. | — | 0.98 | 1.01 | 1.02 | 1.03 | |
| Tesla Inc. | — | 1.42 | 1.13 | 0.94 | 1.00 | |
| Quick Ratio, Sector | ||||||
| Automobiles & Components | — | 1.00 | 0.95 | 0.94 | 0.95 | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | — | 0.91 | 0.86 | 0.81 | 0.93 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 85,989 ÷ 93,342 = 0.92
2 Click competitor name to see calculations.
The quick ratio exhibited a generally positive trend over the five-year period. While fluctuations occurred, the company demonstrated an increasing ability to meet its short-term obligations using its most liquid assets. Total quick assets increased from US$62,719 million in 2021 to US$85,989 million in 2025, while current liabilities also increased, but at a slower rate.
- Quick Ratio Trend
- The quick ratio began at 0.84 in 2021 and rose to 0.92 in 2025. A slight increase to 0.86 was observed in 2022, followed by a minor decrease to 0.83 in 2023. The ratio then experienced more substantial growth, reaching 0.90 in 2024 before concluding at 0.92 in 2025.
- Quick Assets
- Total quick assets increased from US$62,719 million in 2021 to US$78,259 million in 2022, representing a significant rise. A slight decrease to US$77,920 million was noted in 2023. Subsequent years saw further increases, with values reaching US$86,326 million in 2024 and US$85,989 million in 2025. The 2025 value is approximately 37% higher than the 2021 level.
- Current Liabilities
- Current liabilities increased consistently from US$74,408 million in 2021 to US$96,265 million in 2024. A slight decrease was observed in 2025, with current liabilities falling to US$93,342 million. Despite this increase, the growth in quick assets outpaced the growth in current liabilities, contributing to the improving quick ratio.
The observed trend suggests improving short-term liquidity. The quick ratio consistently remained below 1.0 until 2024, indicating that the company did not consistently hold enough liquid assets to cover its immediate liabilities. However, the ratio’s movement towards and exceeding 0.90 suggests a strengthening liquidity position.
Cash Ratio
General Motors Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 20,945) | 19,872) | 18,853) | 19,153) | 20,067) | |
| Marketable debt securities | 6,724) | 7,265) | 7,613) | 12,150) | 8,609) | |
| Total cash assets | 27,669) | 27,137) | 26,466) | 31,303) | 28,676) | |
| Current liabilities | 93,342) | 96,265) | 94,445) | 91,173) | 74,408) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.30 | 0.28 | 0.28 | 0.34 | 0.39 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Ford Motor Co. | — | 0.36 | 0.40 | 0.45 | 0.55 | |
| Tesla Inc. | — | 1.27 | 1.01 | 0.83 | 0.90 | |
| Cash Ratio, Sector | ||||||
| Automobiles & Components | — | 0.44 | 0.43 | 0.45 | 0.52 | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | — | 0.52 | 0.48 | 0.47 | 0.64 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 27,669 ÷ 93,342 = 0.30
2 Click competitor name to see calculations.
The cash ratio exhibited a declining trend from 2021 to 2023, followed by a period of relative stabilization and a slight increase. Total cash assets remained substantial throughout the observed period, though with some fluctuation. Simultaneously, current liabilities consistently increased until 2024 before experiencing a modest decrease in the final year.
- Cash Ratio Trend
- The cash ratio decreased from 0.39 in 2021 to 0.28 in 2023, indicating a diminishing ability to cover immediate current liabilities with only cash and cash equivalents. The ratio remained at 0.28 in 2024, suggesting the decline had stabilized. A slight recovery to 0.30 was observed in 2025, though the ratio did not return to levels seen in 2021.
- Total Cash Assets
- Total cash assets began at US$28,676 million in 2021, increased to US$31,303 million in 2022, and then decreased to US$26,466 million in 2023. Subsequent years saw a modest recovery, reaching US$27,137 million in 2024 and US$27,669 million in 2025. While fluctuations occurred, the company maintained a significant cash position throughout the period.
- Current Liabilities
- Current liabilities demonstrated a consistent upward trend from US$74,408 million in 2021 to US$96,265 million in 2024. This indicates a growing obligation to be settled within one year. In 2025, current liabilities decreased slightly to US$93,342 million, representing the first decline in the observed period.
The combination of decreasing cash ratio alongside increasing current liabilities from 2021 to 2023 suggests a potential weakening in the company’s short-term liquidity position. The stabilization of the cash ratio in 2024 and the slight improvement in 2025, coupled with the decrease in current liabilities in the latter year, may indicate a positive shift, though continued monitoring is warranted.