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)
General Motors Co., solvency ratios (quarterly data)
Based on: 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 general trajectory of increasing leverage coupled with a significant deterioration in interest coverage capabilities toward the end of the analyzed period. While structural debt ratios remained relatively stable through 2022 and early 2023, a distinct shift toward higher gearing occurred starting in late 2023, coinciding with a sharp decline in the capacity to service debt obligations starting in late 2024.
- Debt to Equity and Financial Leverage
- A correlated upward trend is observed in both debt to equity and financial leverage. Debt to equity fluctuated between 1.60 and 1.77 until September 2023, after which it rose to a peak of 2.13 in December 2025, eventually settling at 2.06 by June 2026. Similarly, financial leverage decreased from 4.05 in March 2022 to a low of 3.78 in September 2023, before climbing to a peak of 4.60 in December 2025. These movements indicate a growing reliance on debt financing relative to shareholder equity.
- Debt to Capital and Debt to Assets
- These metrics demonstrate greater stability compared to equity-based leverage. The debt to capital ratio remained within a narrow range, moving from 0.64 in March 2022 to a peak of 0.68 in December 2025, before stabilizing at 0.67. The debt to assets ratio followed a similar pattern, drifting from 0.44 to a high of 0.47 in the first half of 2025 and ending at 0.45 in June 2026. The relative consistency of these ratios suggests that while leverage increased, it did not fundamentally restructure the total capital composition or asset base drastically.
- Interest Coverage
- The most significant volatility is observed in the interest coverage ratio. From March 2022 through September 2024, the ratio remained robust, peaking at 15.31, indicating a strong ability to meet interest payments. However, a precipitous decline began in December 2024, where the ratio fell to 11.07, and continued downward throughout 2025 and 2026. By June 2026, the ratio reached 4.04, representing a substantial reduction in the margin of safety for debt servicing.
In summary, the data reveals a transition from a position of high coverage and moderate leverage to one of higher leverage and significantly tighter interest coverage. The divergence between the relatively stable debt-to-asset ratios and the collapsing interest coverage ratio suggests that either interest expenses have increased significantly or operating earnings have declined substantially in the final six quarters of the period.
AI Ask an analyst for more
Debt Ratios
Coverage Ratios
Debt to Equity
General Motors Co., debt to equity calculation (quarterly data)
| 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 | 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 | 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 | 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 | 62,000) | 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 | 2.06 | 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. | 4.51 | 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 | 0.10 | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 127,697 ÷ 62,000 = 2.06
2 Click competitor name to see calculations.
The solvency profile exhibits a general trajectory of increasing leverage over the analyzed period. While there was an initial phase of ratio improvement, the long-term trend indicates a structural shift toward a higher debt burden relative to shareholders' equity.
- Total Debt Trends
- Total debt demonstrated a consistent upward trend for the majority of the period, rising from 109,805 million US$ in March 2022 to a peak of 135,731 million US$ by June 2025. Following this peak, a gradual reduction is observed, with the balance descending to 127,697 million US$ by June 2026.
- Stockholders' Equity Volatility
- Equity levels displayed significant volatility characterized by periods of growth interrupted by sharp contractions. Equity peaked at 74,475 million US$ in September 2023, followed by a substantial decrease to 64,286 million US$ by December 2023. A similar pattern occurred between June 2024 (70,935 million US$) and September 2024 (63,072 million US$), suggesting periodic capital outflows or adjustments.
- Debt to Equity Ratio Analysis
- The debt to equity ratio initially improved, declining from 1.77 in March 2022 to a period low of 1.60 in September 2023. This trend reversed sharply in December 2023, where the ratio climbed to 1.89. From December 2024 onward, the ratio remained consistently above 2.0, peaking at 2.13 in December 2025 and stabilizing at 2.06 by June 2026.
The confluence of rising total debt and volatile equity levels has resulted in a weakened solvency position compared to the start of the period. The shift from a ratio of 1.77 to a sustained level above 2.0 indicates a higher reliance on debt financing to support operations and assets.
AI Ask an analyst for more
Debt to Capital
General Motors Co., debt to capital calculation (quarterly data)
| 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 | 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 | 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 | 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 | 62,000) | 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 | 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 | 0.68 | 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 | 0.81 | 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 | 0.09 | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 127,697 ÷ 189,697 = 0.67
2 Click competitor name to see calculations.
The financial trajectory of the solvency profile between March 2022 and June 2026 is characterized by an overall increase in both total debt and total capital, accompanied by a gradual rise in the debt-to-capital ratio during the latter half of the period.
- Total Debt Trends
- A sustained upward trend in total debt is observed from March 31, 2022, when debt stood at 109,805 million US$, peaking at 135,731 million US$ by June 30, 2025. Following this peak, a moderate contraction occurred, with debt levels receding to 127,697 million US$ by June 30, 2026.
- Total Capital Evolution
- Total capital expanded in alignment with debt, rising from 171,900 million US$ in the first quarter of 2022 to a maximum of 202,094 million US$ in the second quarter of 2025. Similar to the debt trend, total capital declined in the final quarters, ending at 189,697 million US$ in June 2026.
- Debt to Capital Ratio Analysis
- The debt-to-capital ratio exhibited three distinct phases. Initially, a slight downward trend occurred between March 2022 and September 2023, with the ratio decreasing from 0.64 to a low of 0.61. This was followed by a period of increasing leverage starting in December 2023, where the ratio climbed steadily to a peak of 0.68 by December 31, 2025. In the final six months of the analyzed period, the ratio stabilized at 0.67.
Overall, the solvency data indicates that while absolute debt and capital levels peaked in mid-2025, the structural composition of the capital shifted toward a higher reliance on debt relative to total capital over the long term.
AI Ask an analyst for more
Debt to Assets
General Motors Co., debt to assets calculation (quarterly data)
| 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 | 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 | 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 | 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 | 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 | 0.46 | 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 | 0.54 | 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 | 0.07 | 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: 2026-06-30), 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 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 127,697 ÷ 282,742 = 0.45
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a period of gradual expansion in both total debt and total assets, with the overall debt-to-assets ratio remaining relatively stable despite these fluctuations. The financial structure indicates a consistent approach to leverage, where increases in liabilities were largely matched by growth in the asset base.
- Total Debt Trends
- Total debt exhibited a steady upward trajectory from March 31, 2022, at 109,805 million US$, peaking at 135,731 million US$ by June 30, 2025. This represents a sustained increase in borrowing over a three-year period. Following this peak, a moderate reduction is observed, with debt levels receding to 127,697 million US$ by June 30, 2026.
- Total Asset Evolution
- Total assets grew from 251,492 million US$ in March 2022 to a peak of 289,384 million US$ in June 2025. The growth pattern was characterized by occasional volatility, notably a contraction in December 2023 and again toward the end of 2025, before stabilizing around 282,742 million US$ in June 2026.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio remained highly stable between 0.42 and 0.44 from March 2022 through March 2024. A period of increased leverage is observed starting in December 2023, with the ratio climbing to a peak of 0.47 by June 2025. This upward shift suggests that debt accumulation slightly outpaced asset growth during this interval. In the final year of the observed period, the ratio moderated and stabilized at 0.45, indicating a return to a more balanced solvency position.
AI Ask an analyst for more
Financial Leverage
General Motors Co., financial leverage calculation (quarterly data)
| 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 | 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 | 62,000) | 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 | 4.56 | 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. | 7.99 | 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. | 1.71 | 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: 2026-06-30), 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 Q2 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 282,742 ÷ 62,000 = 4.56
2 Click competitor name to see calculations.
The financial position of the entity exhibits a general expansion in total assets coupled with a fluctuating equity base, resulting in an overall increase in financial leverage over the analyzed period. While there was an initial phase of deleveraging, the latter half of the period is characterized by a sustained increase in the leverage ratio, particularly coinciding with cyclical reductions in stockholders' equity.
- Total Asset Trends
- An upward trajectory in total assets is observed from March 31, 2022, when assets stood at 251,492 million, reaching a peak of 289,384 million by June 30, 2025. Despite minor fluctuations, the asset base remained relatively stable above the 280,000 million threshold from March 2024 through June 2026, indicating a consistent scale of operations and investment.
- Stockholders' Equity Volatility
- Equity growth was steady between March 2022 and September 2023, rising from 62,095 million to 74,475 million. However, a recurring pattern of contraction is evident every fourth quarter. Significant declines occurred on December 31, 2023, December 31, 2024, and December 31, 2025, which suggests periodic capital distributions or year-end accounting adjustments that reduced the equity cushion.
- Financial Leverage Dynamics
- The financial leverage ratio demonstrates an inverse correlation with stockholders' equity. An initial improvement in solvency is noted from March 2022 to September 2023, with the ratio declining from 4.05 to a period low of 3.78. This trend reversed sharply on December 31, 2023, when the ratio climbed to 4.25. Following this pivot, the leverage ratio maintained a general upward trend, peaking at 4.60 on December 31, 2025, and concluding at 4.56 on June 30, 2026.
- Solvency Analysis
- The progression from a low of 3.78 to a high of 4.60 indicates an increasing reliance on debt relative to equity to finance assets. The periodic spikes in leverage are directly attributable to the contraction of stockholders' equity rather than sudden surges in total assets, suggesting that the increase in financial risk is driven by changes in the equity structure.
AI Ask an analyst for more
Interest Coverage
General Motors Co., interest coverage calculation (quarterly data)
| 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 | 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 | 49) | 78) | 49) | (34) | (1) | 69) | 86) | (48) | (56) | (27) | (109) | (70) | (59) | (49) | 9) | (53) | (50) | (132) | ||||||
| Add: Income tax expense | 214) | 642) | (989) | 126) | 481) | 719) | 319) | 709) | 766) | 762) | (858) | 470) | 522) | 429) | 582) | 845) | 490) | (28) | ||||||
| Add: Automotive interest expense | 151) | 158) | 168) | 209) | 198) | 152) | 215) | 206) | 206) | 219) | 222) | 229) | 226) | 234) | 268) | 259) | 234) | 226) | ||||||
| Earnings before interest and tax (EBIT) | 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 | 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. | -7.80 | -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. | 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: 2026-06-30), 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 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (1,719 + 3,505 + -4,081 + 1,628)
÷ (151 + 158 + 168 + 209)
= 4.04
2 Click competitor name to see calculations.
The interest coverage profile reflects a period of robust solvency followed by a progressive decline in the capacity to service interest obligations from earnings. While a significant margin of safety was maintained through the third quarter of 2024, a subsequent downward trend is evident, concluding in a substantial reduction of the coverage ratio by June 2026.
- Earnings Before Interest and Tax (EBIT) Volatility
- EBIT exhibited significant fluctuations throughout the period, characterized by peaks exceeding 3.9 billion USD and periodic deep contractions. Notably, substantial losses were recorded in the fourth quarters of 2024 and 2025. This volatility in operational earnings is the primary driver behind the instability of the solvency ratios.
- Automotive Interest Expense Trends
- Interest expenses remained relatively stable, fluctuating between a high of 268 million USD in late 2022 and a low of 151 million USD in mid-2026. A gradual reduction in interest costs is observable from 2024 through 2026, indicating that the deterioration in the coverage ratio is not the result of increasing debt service costs, but rather a consequence of declining or volatile EBIT.
- Interest Coverage Ratio Trajectory
- The coverage ratio remained strong, ranging between 11.56 and 15.31 from March 2022 through September 2024. However, a consistent decline commenced in the final quarter of 2024, with the ratio falling to 11.07. This downward trajectory accelerated throughout 2025 and 2026, reaching a low of 4.04 by June 2026, which represents a significant narrowing of the company's financial cushion for interest payments.
AI Ask an analyst for more