General Motors Co. (NYSE:GM)

The liquidity position, as indicated by the observed ratios, demonstrates a generally stable trend with some fluctuations over the analyzed period. The current ratio, quick ratio, and cash ratio all exhibit patterns of incremental change, suggesting a consistent approach to managing short-term assets and liabilities.

Current Ratio

The current ratio experienced a slight increase from 1.11 in the first quarter of 2022 to a peak of 1.21 in the third quarter of 2024. A subsequent decrease to 1.17 was noted in the final quarter of 2025. Throughout the period, the ratio remained relatively consistent, fluctuating within a narrow range, indicating a generally stable ability to cover short-term obligations with short-term assets. The ratio briefly dipped to 1.08 in late 2022, but recovered quickly.

Quick Ratio

The quick ratio followed a similar pattern to the current ratio, increasing from 0.84 in the first quarter of 2022 to 0.98 in the third quarter of 2025, before decreasing to 0.92 in the final quarter of 2025. This suggests an improvement in the ability to meet short-term liabilities with highly liquid assets. The quick ratio consistently remained below 1.0 throughout the period, indicating that the company may need to liquidate some current assets to meet immediate obligations, though the trend suggests a lessening of this reliance over time.

Cash Ratio

The cash ratio demonstrated more limited fluctuation compared to the other two ratios. It began at 0.33 in the first quarter of 2022, peaked at 0.36 in the third quarter of 2023, and concluded at 0.30 in the final quarter of 2025. This indicates a consistent, though modest, ability to cover immediate liabilities with cash and cash equivalents. The ratio experienced a notable dip to 0.28 in late 2022 and again in late 2024, but recovered in subsequent quarters.

Overall, the observed liquidity ratios suggest a reasonably healthy short-term financial position. The incremental increases in the current and quick ratios over the period indicate a strengthening ability to meet short-term obligations. The cash ratio, while consistently lower, remained stable, suggesting a conservative approach to cash management. The slight declines observed in all ratios during the final quarter of 2025 warrant further investigation, but do not appear to represent a significant cause for concern based solely on this information.

The current ratio exhibited fluctuations over the observed period, generally remaining above 1.0, indicating a sufficient level of current assets to cover current liabilities. However, variations exist that warrant further examination.

Overall Trend

From March 31, 2022, to December 31, 2025, the current ratio demonstrated a generally stable pattern, oscillating between 1.08 and 1.23. A slight upward trend is discernible in the latter half of the period, with ratios consistently above 1.20 from March 31, 2024, through September 30, 2025, before decreasing slightly to 1.17 by December 31, 2025.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The current ratio began at 1.11 and peaked at 1.15 before declining to 1.10 by the end of 2022. This initial fluctuation suggests a dynamic relationship between current assets and liabilities during this timeframe. The decrease in the final quarter of 2022 could indicate increased short-term obligations or a reduction in liquid assets.

Stabilization and Improvement (Mar 31, 2023 – Jun 30, 2024)

The ratio stabilized around 1.10 in the first quarter of 2023, then increased to 1.15 and 1.14 in subsequent quarters. This was followed by a dip to 1.08 in December 2023, before a consistent rise to 1.18 and 1.21 by June 30, 2024. This period suggests improved liquidity management or a favorable shift in the composition of current assets and liabilities.

Recent Performance (Sep 30, 2024 – Dec 31, 2025)

The current ratio reached its highest point of 1.23 in September 2025. However, a slight decrease to 1.17 was observed by December 31, 2025. While still above the benchmark of 1.0, this recent decline warrants monitoring to determine if it represents a temporary fluctuation or the beginning of a new trend.

In summary, the current ratio indicates a generally healthy liquidity position throughout the analyzed period. The observed fluctuations suggest ongoing management of short-term financial obligations and asset allocation. The recent slight decline, while not alarming, should be monitored in future reporting periods.

The quick ratio for the analyzed period demonstrates fluctuations, generally trending upwards with some quarterly variations. Initial values indicate a moderate ability to meet short-term obligations with highly liquid assets. Over the observed timeframe, the ratio exhibits periods of improvement followed by slight declines, suggesting a dynamic relationship between liquid assets and current liabilities.

Overall Trend

The quick ratio generally increased from 0.84 in March 2022 to 0.92 in December 2025. However, this increase was not linear, with several quarterly decreases interrupting the upward trajectory. The highest ratio observed was 0.98 in September 2025, while the lowest was 0.82 in March 2023.

Short-Term Fluctuations (2022-2023)

From March 2022 to December 2022, the quick ratio remained relatively stable, fluctuating between 0.84 and 0.88. A dip to 0.82 was observed in March 2023, potentially indicating a temporary strain on liquidity. This was followed by a recovery to 0.88 in June 2023, and a sustained level in September 2023.

Mid-Term Improvement (2023-2025)

Beginning in December 2023, the quick ratio showed a consistent upward trend, increasing from 0.83 to 0.96 by March 2025. This suggests improved liquidity management or a favorable shift in the composition of current assets and liabilities. The ratio peaked at 0.98 in September 2025 before decreasing slightly to 0.92 in December 2025.

Asset and Liability Relationship

Total quick assets increased overall from US$66,642 million in March 2022 to US$85,989 million in December 2025. Current liabilities also increased, moving from US$79,555 million to US$93,342 million over the same period. The observed increases in both assets and liabilities suggest overall business growth, with the quick ratio’s fluctuations reflecting the relative pace of change between the two.

The observed trends suggest the entity maintains a generally adequate, though not exceptionally strong, short-term liquidity position. The increases in both quick assets and current liabilities indicate expansion, and the quick ratio’s movements warrant continued monitoring to ensure sufficient coverage of immediate obligations.

The cash ratio for the analyzed period demonstrates fluctuations, generally remaining within a relatively narrow range. An initial increase is observed, followed by a period of decline, and then a degree of stabilization before concluding with a slight decrease. The ratio indicates the company’s ability to meet its short-term obligations with only cash and cash equivalents.

Overall Trend

The cash ratio began at 0.33 in March 2022 and experienced a gradual increase, peaking at 0.36 in September 2023. A subsequent decline occurred, reaching a low of 0.28 in December 2022 and again in December 2024. The ratio generally hovered between 0.30 and 0.36 for much of the period, suggesting a consistent, though not exceptionally strong, short-term liquidity position.

Initial Increase (Mar 31, 2022 – Sep 30, 2023)

From March 2022 to September 2023, the cash ratio increased from 0.33 to 0.36. This improvement coincided with increases in total cash assets, which rose from US$26,256 million to US$34,875 million over the same period. While current liabilities also increased, the growth in cash assets outpaced that of current liabilities, resulting in the improved ratio.

Subsequent Decline (Sep 30, 2023 – Dec 31, 2024)

Following the peak in September 2023, the cash ratio decreased to 0.28 by December 2024. This decline was primarily driven by a significant reduction in total cash assets, which fell from US$34,875 million to US$26,466 million in December 2023 and further to US$27,137 million in December 2024. Current liabilities remained relatively stable during this period, exacerbating the decline in the ratio.

Recent Period (Mar 31, 2025 – Jun 30, 2025)

The cash ratio experienced a slight increase from 0.30 in March 2025 to 0.31 in June 2025, accompanied by a modest increase in total cash assets from US$27,489 million to US$29,339 million. Current liabilities also saw a slight increase, but the rise in cash assets was sufficient to improve the ratio marginally. The ratio concluded the analyzed period at 0.30 in December 2025.

The observed fluctuations in the cash ratio suggest a dynamic relationship between the company’s cash management and its short-term obligations. While the ratio generally indicates an adequate ability to cover immediate liabilities with available cash, the declines warrant attention and potential investigation into the underlying causes of cash asset reductions.