General Motors Co. (NYSE:GM)

Current Ratio

The current ratio exhibits moderate fluctuations over the observed periods, generally remaining above 1.0, which indicates that short-term assets consistently exceed short-term liabilities. Starting from 1.07 in March 2020, it increased gradually to 1.12 by June 2020 and stayed relatively stable around this level through December 2020. A noticeable upward trend resumes in 2022, reaching a peak around 1.21 in several quarters, including March 2025. Despite some minor declines, the ratio remains robust, suggesting a stable liquidity position and an ability to cover current obligations without stress.

Quick Ratio

The quick ratio shows a pattern of mild variability but generally trends upward toward the later periods. It starts at 0.88 in March 2020 and experiences slight declines in late 2020, reaching as low as 0.79 in December 2020 and September 2021. Thereafter, the quick ratio demonstrates recovery and improvement, peaking near 0.96 in September 2024 and March 2025. This trend indicates an improvement in the company's liquid assets excluding inventory, reflecting strengthened immediate liquidity.

Cash Ratio

The cash ratio displays a declining tendency overall, with some intermittent minor recoveries. Initially, the cash ratio starts at 0.51 in March 2020 but declines significantly to around 0.36 by December 2020. The ratio then experiences further fluctuations with lows near 0.28 in late 2023 and early 2024, indicating a reduced proportion of cash and cash equivalents relative to current liabilities. Although there is a modest increase to about 0.34 in September 2024, the general trend suggests a more conservative cash position over the observed timeframe.

The analysis of the financial data reflects the trends in current assets, current liabilities, and the current ratio over the observed quarterly periods.

Current Assets

The current assets demonstrate fluctuations throughout the timeline. Initially, there is a decline from 97,699 million US dollars in the first quarter of 2020 to a low point near 77,791 million in the third quarter of 2021. After this, a recovery and steady increase occur, peaking around the end of 2023 at over 110,000 million US dollars. Subsequently, a slight downward adjustment is observed in early 2024, yet the level remains significantly higher than the initial quarters.

Current Liabilities

Current liabilities display a somewhat decreasing trend from 91,292 million US dollars in the first quarter of 2020 to about 71,951 million in the third quarter of 2021, mirroring the behavior of current assets during the same period. Following this, liabilities increase steadily and peak at approximately 96,820 million toward the end of 2023, with minor fluctuations afterward, yet showing a reduction toward the first quarter of 2025.

Current Ratio

The current ratio remains relatively stable, oscillating around the 1.0 to 1.2 range throughout the periods. The ratio starts at 1.07, improves to above 1.10 in later 2020, and holds close to this level with a peak nearing 1.21 in the third quarter of 2024. These values indicate a generally consistent ability to cover short-term liabilities with current assets, reflecting moderate liquidity conditions without significant volatility.

Overall, the period shows an initial contraction in both current assets and current liabilities, followed by a recovery and gradual growth phase. The current ratio's stability amid these changes suggests steady management of working capital and liquidity. Asset increases are proportionate to liabilities, maintaining a balanced short-term financial position.

The analysis of the quarterly data reveals several notable trends in the company's liquidity position over the observed periods.

Total quick assets

Total quick assets demonstrate some fluctuation across the quarters. There was a decline from March 2020 (79,982 million USD) reaching a low near December 2020 (63,282 million USD). This was followed by a relatively moderate recovery and stabilization through 2021. From early 2022 onward, a gradual increase is apparent, peaking around September 2023 (85,022 million USD) before dropping moderately again toward the end of 2024 and early 2025, where it remains above prior lows, ending at 86,942 million USD in March 2025.

Current liabilities

Current liabilities also fluctuate over time but generally follow an upward trend from March 2020 (91,292 million USD) to a peak around late 2024 (96,265 million USD). There is a temporary decline noticeable in March 2025, falling to 90,747 million USD. The overall trend indicates increasing short-term obligations, which may reflect operational scale or changing working capital requirements.

Quick ratio

The quick ratio starts at 0.88 in March 2020, maintains a relatively stable level close to 0.8 to 0.9 through 2020 and 2021, with minor dips and rises. Notably, it reaches its lowest point around December 2020 (0.79) and again around September 2021 (0.79). Post-2021, the ratio exhibits a steady improvement, crossing the 0.9 threshold consistently from late 2023 through to early 2025, peaking at 0.96 in several quarters. This suggests enhanced liquidity and a stronger ability to cover current liabilities using the most liquid assets over the recent periods.

Overall, although current liabilities have grown, the company’s quick assets have increased sufficiently to improve the quick ratio, indicating better short-term financial health and greater capacity to meet immediate liabilities. The improving quick ratio towards the end of the period under review reflects positively on liquidity management despite the fluctuations in absolute values of assets and liabilities.

The analysis of the quarterly financial data reveals several key trends in liquidity and short-term financial health over the observed periods.

Total Cash Assets

The total cash assets exhibit a fluctuating pattern over the quarters. Starting at 46,126 million USD in March 2020, the cash assets declined through 2020, reaching a low of 23,940 million USD in September 2021. Thereafter, cash assets showed signs of recovery and growth with notable increases in June and September 2023, peaking again at 34,875 million USD in September 2023 before falling back to 27,489 million USD by March 2025. The fluctuations suggest a variable cash management strategy possibly responsive to operational needs or market conditions.

Current Liabilities

Current liabilities show a general upward trend from 91,292 million USD in March 2020 to a peak of 96,820 million USD in March 2024. Despite some fluctuations, current liabilities remained elevated throughout, indicating sustained or increasing short-term obligations. This persistent high level of current liabilities may imply increased operational expenses or short-term funding requirements.

Cash Ratio

The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, declined from 0.51 in March 2020 to a low of 0.28 in June 2024 and remained around this level through to March 2025. This decline reflects a decreasing coverage of current liabilities by cash assets, signaling potential liquidity pressure or more aggressive utilization of cash reserves relative to obligations.

Overall, the data illustrate a scenario where cash resources have been diminishing in coverage relative to increasing current liabilities, potentially indicating tighter liquidity conditions or shifts in working capital management. Continued monitoring of cash ratio trends and liabilities will be critical to assess the short-term financial flexibility and risk exposure.