Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
General Motors Co., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency profile exhibits a phased transition, moving from a period of relative stability and declining leverage between early 2022 and late 2023 toward a period of increased debt reliance and heightened financial risk throughout 2024 and 2025.
- Debt-to-Equity and Financial Leverage
- A noticeable upward shift in leverage occurred starting in December 2023. The debt-to-equity ratio, which had decreased from 1.77 in March 2022 to 1.60 in September 2023, climbed to a peak of 2.13 by December 2025, before stabilizing around 2.05. This trend is mirrored in the financial leverage ratio, which rose from a low of 3.78 in September 2023 to a peak of 4.60 in December 2025 and September 2026, indicating a higher proportion of debt relative to equity and total assets over the latter half of the period.
- Debt-to-Capital and Debt-to-Assets
- These ratios demonstrate greater stability compared to equity-based leverage. The debt-to-capital ratio remained tightly range-bound, fluctuating minimally between 0.61 and 0.68. Similarly, the debt-to-assets ratio hovered between 0.42 and 0.47. This suggests that while the equity base may have shifted, the overall composition of the capital structure and the asset-backing of debt remained relatively constant.
- Interest Coverage Capacity
- The most significant volatility is observed in the interest coverage ratio. From March 2022 through September 2024, the company maintained a strong ability to service debt, with the ratio peaking at 15.31. However, a sharp downward trend emerged in late 2024, with the ratio falling to a low of 4.04 by June 2026. This precipitous decline indicates a compression in the margin of safety for interest payments, although a recovery to 8.21 in September 2026 suggests a potential stabilization of operating income or a reduction in interest expenses.
In summary, the data indicates a strategic or operational shift toward higher leverage starting in late 2023. While the asset-to-debt ratio remains stable, the combination of rising financial leverage and a temporary collapse in interest coverage suggests an increase in the company's financial risk profile during the 2024-2026 window.
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Debt to Equity
General Motors Co., debt to equity calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt and current portion of long-term debt | 43,468) | 37,012) | 36,294) | 35,668) | 36,477) | 38,314) | 35,934) | 39,432) | 36,162) | 38,098) | 35,976) | 38,968) | 38,652) | 36,668) | 37,010) | 38,778) | 35,084) | 32,306) | 33,037) | ||||||
| Long-term debt, excluding current portion | 85,275) | 90,685) | 91,462) | 94,609) | 96,026) | 97,417) | 96,744) | 90,300) | 91,689) | 88,338) | 86,261) | 82,773) | 80,221) | 81,375) | 77,411) | 75,921) | 77,523) | 78,081) | 76,768) | ||||||
| Total debt | 128,743) | 127,697) | 127,756) | 130,277) | 132,503) | 135,731) | 132,678) | 129,732) | 127,851) | 126,436) | 122,237) | 121,741) | 118,873) | 118,043) | 114,421) | 114,699) | 112,607) | 110,387) | 109,805) | ||||||
| Stockholders’ equity | 62,806) | 62,000) | 62,659) | 61,119) | 66,374) | 66,363) | 64,372) | 63,072) | 70,935) | 68,633) | 66,598) | 64,286) | 74,475) | 71,655) | 69,877) | 67,792) | 65,268) | 63,954) | 62,095) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 2.05 | 2.06 | 2.04 | 2.13 | 2.00 | 2.05 | 2.06 | 2.06 | 1.80 | 1.84 | 1.84 | 1.89 | 1.60 | 1.65 | 1.64 | 1.69 | 1.73 | 1.73 | 1.77 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | 4.42 | 4.51 | 4.20 | 4.54 | 3.42 | 3.50 | 3.48 | 3.54 | 3.55 | 3.46 | 3.49 | 3.49 | 3.22 | 3.28 | 3.29 | 3.21 | 3.05 | 2.92 | 3.01 | ||||||
| Tesla Inc. | 0.11 | 0.11 | 0.11 | 0.10 | 0.10 | 0.09 | 0.10 | 0.11 | 0.11 | 0.12 | 0.08 | 0.08 | 0.10 | 0.07 | 0.08 | 0.09 | 0.12 | 0.15 | 0.17 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 128,743 ÷ 62,806 = 2.05
2 Click competitor name to see calculations.
The solvency profile indicates a gradual increase in leverage over the observed period. While there was an initial improvement in the debt-to-equity position through 2022 and the first three quarters of 2023, a subsequent rise in total debt combined with volatility in stockholders' equity has resulted in a higher reliance on debt financing by the end of the period.
- Total Debt Trends
- A consistent upward trajectory in total debt is evident, rising from 109,805 million USD in March 2022 to a peak of 135,731 million USD by June 2025. Following this peak, a moderate decline occurred, with the total debt balance settling at 128,743 million USD by September 2026.
- Stockholders' Equity Dynamics
- Equity levels exhibited significant volatility. A growth phase was observed through September 2023, reaching 74,475 million USD. However, sharp contractions were recorded in December 2023 and December 2024, where equity dropped to 64,286 million USD and 63,072 million USD, respectively. Equity remained relatively stagnant between 61,119 million USD and 66,374 million USD throughout 2025 and 2026.
- Debt to Equity Ratio Progression
- The leverage ratio transitioned through three distinct phases. From March 2022 to September 2023, a deleveraging trend occurred, with the ratio decreasing from 1.77 to 1.60. This was followed by a sharp increase during the fourth quarters of 2023 and 2024, pushing the ratio to 1.89 and 2.06, respectively. From December 2024 through September 2026, the ratio stabilized at a higher plateau, fluctuating between 2.00 and 2.13, indicating a shift toward a more leveraged capital structure.
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Debt to Capital
General Motors Co., debt to capital calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt and current portion of long-term debt | 43,468) | 37,012) | 36,294) | 35,668) | 36,477) | 38,314) | 35,934) | 39,432) | 36,162) | 38,098) | 35,976) | 38,968) | 38,652) | 36,668) | 37,010) | 38,778) | 35,084) | 32,306) | 33,037) | ||||||
| Long-term debt, excluding current portion | 85,275) | 90,685) | 91,462) | 94,609) | 96,026) | 97,417) | 96,744) | 90,300) | 91,689) | 88,338) | 86,261) | 82,773) | 80,221) | 81,375) | 77,411) | 75,921) | 77,523) | 78,081) | 76,768) | ||||||
| Total debt | 128,743) | 127,697) | 127,756) | 130,277) | 132,503) | 135,731) | 132,678) | 129,732) | 127,851) | 126,436) | 122,237) | 121,741) | 118,873) | 118,043) | 114,421) | 114,699) | 112,607) | 110,387) | 109,805) | ||||||
| Stockholders’ equity | 62,806) | 62,000) | 62,659) | 61,119) | 66,374) | 66,363) | 64,372) | 63,072) | 70,935) | 68,633) | 66,598) | 64,286) | 74,475) | 71,655) | 69,877) | 67,792) | 65,268) | 63,954) | 62,095) | ||||||
| Total capital | 191,549) | 189,697) | 190,415) | 191,396) | 198,877) | 202,094) | 197,050) | 192,804) | 198,786) | 195,069) | 188,835) | 186,027) | 193,348) | 189,698) | 184,298) | 182,491) | 177,875) | 174,341) | 171,900) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.67 | 0.67 | 0.67 | 0.68 | 0.67 | 0.67 | 0.67 | 0.67 | 0.64 | 0.65 | 0.65 | 0.65 | 0.61 | 0.62 | 0.62 | 0.63 | 0.63 | 0.63 | 0.64 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | 0.82 | 0.82 | 0.81 | 0.82 | 0.77 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.76 | 0.77 | 0.77 | 0.76 | 0.75 | 0.74 | 0.75 | ||||||
| Tesla Inc. | 0.10 | 0.10 | 0.10 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.08 | 0.08 | 0.09 | 0.06 | 0.07 | 0.09 | 0.10 | 0.13 | 0.15 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 128,743 ÷ 191,549 = 0.67
2 Click competitor name to see calculations.
The analysis of solvency metrics between March 2022 and September 2026 reveals a period of sustained growth in total debt and total capital, resulting in a shifting leverage profile. An initial phase of ratio compression was followed by a period of increased leverage that stabilized in the final quarters of the analyzed period.
- Total Debt Trajectory
- A consistent upward trend in total debt is observed from March 2022, where debt stood at 109,805 million USD, reaching a peak of 135,731 million USD by March 2025. Following this peak, a moderate reduction occurred, with total debt declining to 128,743 million USD by September 2026. This represents a net increase in total obligations over the four-year period.
- Total Capital Dynamics
- Total capital expanded from 171,900 million USD in March 2022 to a maximum of 202,094 million USD in June 2025. Similar to the debt trend, total capital experienced a contraction in the subsequent quarters, ending at 191,549 million USD in September 2026. The synchronization between debt and capital growth suggests a proportional expansion of the company's funding base.
- Debt to Capital Ratio Analysis
- The debt to capital ratio exhibited three distinct phases. First, a period of gradual improvement occurred between March 2022 and September 2023, with the ratio declining from 0.64 to a period low of 0.61. Second, a reversal is noted starting in December 2023, where the ratio climbed to 0.65 and continued to rise, peaking at 0.68 in December 2025. Third, the ratio entered a stabilization phase throughout 2026, maintaining a constant level of 0.67.
- Solvency Implications
- The increase in the debt to capital ratio from 0.61 in late 2023 to 0.67 by 2026 indicates a higher reliance on debt relative to total capital. While the absolute values of both debt and capital decreased slightly in 2026, the ratio remained elevated, suggesting that the capital structure has settled at a higher leverage point than was present in early 2023.
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Debt to Assets
General Motors Co., debt to assets calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt and current portion of long-term debt | 43,468) | 37,012) | 36,294) | 35,668) | 36,477) | 38,314) | 35,934) | 39,432) | 36,162) | 38,098) | 35,976) | 38,968) | 38,652) | 36,668) | 37,010) | 38,778) | 35,084) | 32,306) | 33,037) | ||||||
| Long-term debt, excluding current portion | 85,275) | 90,685) | 91,462) | 94,609) | 96,026) | 97,417) | 96,744) | 90,300) | 91,689) | 88,338) | 86,261) | 82,773) | 80,221) | 81,375) | 77,411) | 75,921) | 77,523) | 78,081) | 76,768) | ||||||
| Total debt | 128,743) | 127,697) | 127,756) | 130,277) | 132,503) | 135,731) | 132,678) | 129,732) | 127,851) | 126,436) | 122,237) | 121,741) | 118,873) | 118,043) | 114,421) | 114,699) | 112,607) | 110,387) | 109,805) | ||||||
| Total assets | 289,183) | 282,742) | 280,974) | 281,284) | 288,168) | 289,384) | 282,104) | 279,761) | 289,289) | 282,956) | 276,591) | 273,064) | 281,705) | 275,833) | 267,004) | 264,037) | 260,529) | 253,517) | 251,492) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.45 | 0.45 | 0.45 | 0.46 | 0.46 | 0.47 | 0.47 | 0.46 | 0.44 | 0.45 | 0.44 | 0.45 | 0.42 | 0.43 | 0.43 | 0.43 | 0.43 | 0.44 | 0.44 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | 0.56 | 0.56 | 0.56 | 0.56 | 0.54 | 0.54 | 0.55 | 0.56 | 0.55 | 0.55 | 0.54 | 0.55 | 0.53 | 0.54 | 0.54 | 0.54 | 0.52 | 0.52 | 0.54 | ||||||
| Tesla Inc. | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.06 | 0.07 | 0.05 | 0.05 | 0.06 | 0.04 | 0.04 | 0.05 | 0.06 | 0.08 | 0.09 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 128,743 ÷ 289,183 = 0.45
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a period of moderate leverage expansion followed by a phase of stabilization. Over the observed period, both total debt and total assets increased, with the debt-to-assets ratio remaining within a relatively tight band of 0.42 to 0.47, indicating a disciplined approach to maintaining the balance between borrowed capital and total resources.
- Total Debt Trajectory
- A consistent upward trend in total debt is observed from March 2022 through June 2025, with obligations rising from 109,805 million USD to a peak of 135,731 million USD. Following this peak, a gradual reduction and subsequent stabilization occurred, with debt levels settling at 128,743 million USD by September 2026.
- Asset Base Expansion
- Total assets exhibited growth from 251,492 million USD in March 2022 to a maximum of 289,384 million USD in June 2025. The asset base remained relatively stable throughout the latter half of the period, fluctuating between approximately 280,000 million USD and 289,000 million USD.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio remained stable between 0.42 and 0.44 from March 2022 through September 2023. A period of increasing leverage was observed starting in December 2023, where the ratio climbed steadily to a peak of 0.47 by June 2025. This suggests that during this window, debt accumulation slightly outpaced asset growth. In the final year of the analysis, the ratio normalized, stabilizing between 0.45 and 0.46.
The overall financial positioning suggests that while the company increased its total leverage to support growth or operations through mid-2025, it successfully capped this expansion. The convergence of the ratio toward 0.45 in the final quarters indicates a sustained solvency equilibrium.
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Financial Leverage
General Motors Co., financial leverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 289,183) | 282,742) | 280,974) | 281,284) | 288,168) | 289,384) | 282,104) | 279,761) | 289,289) | 282,956) | 276,591) | 273,064) | 281,705) | 275,833) | 267,004) | 264,037) | 260,529) | 253,517) | 251,492) | ||||||
| Stockholders’ equity | 62,806) | 62,000) | 62,659) | 61,119) | 66,374) | 66,363) | 64,372) | 63,072) | 70,935) | 68,633) | 66,598) | 64,286) | 74,475) | 71,655) | 69,877) | 67,792) | 65,268) | 63,954) | 62,095) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 4.60 | 4.56 | 4.48 | 4.60 | 4.34 | 4.36 | 4.38 | 4.44 | 4.08 | 4.12 | 4.15 | 4.25 | 3.78 | 3.85 | 3.82 | 3.89 | 3.99 | 3.96 | 4.05 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | 7.92 | 7.99 | 7.54 | 8.04 | 6.35 | 6.50 | 6.37 | 6.36 | 6.48 | 6.35 | 6.40 | 6.39 | 6.06 | 6.09 | 6.06 | 5.92 | 5.86 | 5.56 | 5.62 | ||||||
| Tesla Inc. | 1.76 | 1.71 | 1.71 | 1.68 | 1.67 | 1.66 | 1.68 | 1.67 | 1.71 | 1.70 | 1.70 | 1.70 | 1.76 | 1.77 | 1.81 | 1.84 | 1.87 | 1.88 | 1.94 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 289,183 ÷ 62,806 = 4.60
2 Click competitor name to see calculations.
An analysis of the balance sheet structure reveals a general expansion in total assets accompanied by increasing volatility in stockholders' equity, which has led to a rising trend in financial leverage over the observed period.
- Total Asset Trajectory
- Total assets exhibited a consistent growth trend, increasing from 251,492 million USD in March 2022 to 289,183 million USD by September 2026. This growth is characterized by periodic quarterly contractions, specifically during the December reporting periods of 2023, 2024, and 2025, suggesting a recurring seasonal or cyclical adjustment in asset valuation or composition.
- Stockholders' Equity Volatility
- Equity levels demonstrated significant fluctuations. An initial growth phase peaked in September 2023 at 74,475 million USD, followed by a sharp decline to 64,286 million USD by December 2023. A subsequent recovery occurred through September 2024, reaching 70,935 million USD, before another contraction occurred in December 2024. From 2025 through September 2026, equity remained relatively stagnant, fluctuating within a narrow range between 61,119 million USD and 66,374 million USD.
- Financial Leverage Dynamics
- The financial leverage ratio underwent two distinct phases. From March 2022 to September 2023, the ratio trended downward from 4.05 to 3.78, indicating a period of deleveraging where equity growth outpaced asset expansion. However, starting in December 2023, a reversal occurred, with the ratio climbing to 4.25. Despite a brief stabilization period in 2024, the ratio resumed a steady upward trajectory, reaching a peak of 4.60 by September 2026.
- Solvency Correlation
- The increase in financial leverage is directly correlated with the intermittent drops in stockholders' equity. Because total assets continued to grow or remain high while equity experienced periodic declines, the reliance on debt financing relative to equity increased. The final period of the analysis shows the highest leverage levels, indicating a more aggressive capital structure as of September 2026 compared to the baseline in March 2022.
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Interest Coverage
General Motors Co., interest coverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to stockholders | 3,335) | 1,305) | 2,627) | (3,309) | 1,327) | 1,895) | 2,784) | (2,961) | 3,056) | 2,933) | 2,980) | 2,102) | 3,064) | 2,566) | 2,395) | 1,998) | 3,305) | 1,692) | 2,939) | ||||||
| Add: Net income attributable to noncontrolling interest | 42) | 49) | 78) | 49) | (34) | (1) | 69) | 86) | (48) | (56) | (27) | (109) | (70) | (59) | (49) | 9) | (53) | (50) | (132) | ||||||
| Add: Income tax expense | 566) | 214) | 642) | (989) | 126) | 481) | 719) | 319) | 709) | 766) | 762) | (858) | 470) | 522) | 429) | 582) | 845) | 490) | (28) | ||||||
| Add: Automotive interest expense | 162) | 151) | 158) | 168) | 209) | 198) | 152) | 215) | 206) | 206) | 219) | 222) | 229) | 226) | 234) | 268) | 259) | 234) | 226) | ||||||
| Earnings before interest and tax (EBIT) | 4,105) | 1,719) | 3,505) | (4,081) | 1,628) | 2,573) | 3,724) | (2,341) | 3,923) | 3,849) | 3,934) | 1,357) | 3,693) | 3,255) | 3,009) | 2,857) | 4,356) | 2,366) | 3,005) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 8.21 | 4.04 | 4.95 | 5.29 | 7.21 | 10.22 | 11.75 | 11.07 | 15.31 | 14.65 | 13.66 | 12.42 | 13.39 | 13.65 | 12.65 | 12.75 | 12.89 | 11.56 | 13.21 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | -7.18 | -7.80 | -6.25 | -8.43 | 5.41 | 4.77 | 6.55 | 7.49 | 3.57 | 3.88 | 3.69 | 4.05 | 6.58 | 4.59 | 3.38 | -1.40 | 6.10 | 7.71 | 7.10 | ||||||
| Tesla Inc. | 13.11 | 16.62 | 17.04 | 16.62 | 19.97 | 21.42 | 22.07 | 26.69 | 28.48 | 31.31 | 45.64 | 64.93 | 92.91 | 94.40 | 82.09 | 72.83 | 55.02 | 36.16 | 29.34 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (4,105 + 1,719 + 3,505 + -4,081)
÷ (162 + 151 + 158 + 168)
= 8.21
2 Click competitor name to see calculations.
The analysis of solvency metrics indicates a period of initial stability followed by significant volatility in the capacity to service automotive interest obligations. While the interest coverage ratio maintained a strong position above 11.0 throughout 2022 and 2023, a downward trajectory emerged starting in 2025, reaching a low point in mid-2026 before showing signs of recovery.
- Earnings Before Interest and Tax (EBIT) Performance
- Operating earnings exhibited substantial fluctuation over the period. Highs were recorded in September 2022 (US$ 4,356 million) and September 2024 (US$ 3,923 million). However, severe contractions occurred in December 2024 and December 2025, with losses of US$ 2,341 million and US$ 4,081 million, respectively. These negative results directly impacted the solvency ratios despite subsequent recoveries in the first quarters of 2025 and 2026.
- Automotive Interest Expense Trends
- Interest expenses remained relatively stable and trended downward over the analyzed period. Expenses peaked at US$ 268 million in December 2022 and declined to a low of US$ 151 million by June 2026. This consistent reduction in interest costs suggests a strategic deleveraging or a reduction in the cost of borrowing, which provided a mitigating effect against the volatility of operating income.
- Interest Coverage Ratio Dynamics
- The ratio peaked at 15.31 in September 2024, reflecting a high margin of safety. A subsequent decline is observed, with the ratio dropping to 4.04 by June 2026. This degradation was primarily driven by the instability of EBIT rather than an increase in debt costs. The ratio's volatility reflects an increased sensitivity to operational shocks in the latter part of the period, although the recovery to 8.21 in September 2026 suggests a return to a more sustainable solvency position.
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