General Motors Co. (NYSE:GM)

The financial ratios exhibit significant trends over the observed periods, reflecting changes in capital structure and financial stability.

Debt to Equity Ratio

This ratio shows a steady decline from 3.15 in March 2020 to a low of 1.60 in September 2023, indicating a reduction in reliance on debt relative to equity. However, from September 2023 onwards, the ratio trends upward again, reaching approximately 2.05 by June 2025. This reversal suggests a recent increase in debt financing.

Debt to Capital Ratio

The debt to capital ratio declines gradually from 0.76 in early 2020 to a low of 0.61 in September 2023, indicating improved capital structure with less proportion of debt. Similar to the debt to equity ratio, it experiences a slight uptick after this point, stabilizing around 0.67 by mid-2025, signaling a moderate increase in debt within the capital base.

Debt to Assets Ratio

This ratio decreases from 0.51 in March 2020 to approximately 0.42 in September 2023, pointing to a lower proportion of debt financing against total assets. After this low, the ratio climbs back to roughly 0.47 by June 2025, reflecting a modest increase in debt relative to assets in recent quarters.

Financial Leverage

Financial leverage demonstrates a downward trend from 6.15 in March 2020 to about 3.78 in September 2023, indicating reduced leverage and consequently lower risk. It then rises to around 4.36 by June 2025, which may suggest an increment in leverage and a slight shift back toward more aggressive use of borrowed funds.

Interest Coverage Ratio

The interest coverage ratio, with data starting in September 2020 at 8.37, shows considerable improvement reaching a peak of approximately 15.87 in September 2021. Following this peak, it fluctuates between roughly 11 and 15 through June 2025. These values indicate generally strong ability to cover interest expenses, although some volatility suggests varying earnings or interest expenses over time.

Overall, the analysis reveals an initial phase of deleveraging and strengthening financial stability from 2020 through late 2023. In the subsequent periods up to mid-2025, there is evidence of cautious re-leveraging, with increases in debt ratios and financial leverage. The interest coverage remains healthy throughout, implying continued capacity to meet interest obligations despite the changing leverage levels.

The analysis of the financial data reveals notable trends in the total debt, stockholders’ equity, and the debt to equity ratio over the observed periods.

Total Debt

Total debt shows an initial declining trend from March 31, 2020 (126,500 million USD) through December 31, 2020 (109,894 million USD). Following this period, total debt remains relatively stable with slight fluctuations around the 110,000 million USD mark until early 2023. From the first quarter of 2023 onwards, there is a consistent upward trajectory, culminating in a value of 135,731 million USD by June 30, 2025. The data indicates a gradual increase in debt levels during the last reported periods.

Stockholders’ Equity

Stockholders’ equity displays a general upward trend throughout most of the periods. Beginning at 40,113 million USD on March 31, 2020, equity increases steadily to reach a peak of 74,475 million USD by March 31, 2023. After this peak, a decline is observed, with equity decreasing noticeably to 64,286 million USD by December 31, 2023. Subsequently, equity stabilizes with slight rises, concluding at 66,363 million USD on June 30, 2025. This pattern suggests a period of growth followed by some retrenchment and stabilization in equity levels.

Debt to Equity Ratio

The debt to equity ratio decreases significantly from 3.15 on March 31, 2020, to a low of 1.60 by December 31, 2023. This decline reflects the interplay of falling debt and rising equity during most of the period. Notably, after December 31, 2023, the ratio reverses course and begins increasing again, reaching levels above 2.00 by mid-2025. This rise in the ratio coincides with the reduction in equity and the increase in total debt, indicating a higher reliance on debt financing relative to equity in the most recent periods.

Overall, the financial structure presents a phase of deleveraging followed by renewed leverage growth. The equity expansion until early 2023 suggests improvements in net asset value or retained earnings, while the subsequent decline merits attention. The increased leverage in recent periods could imply higher financial risk or strategic borrowing to support operations or investments.

Total Debt

The total debt shows a decreasing trend from March 31, 2020, through December 31, 2020, dropping from 126,500 million US dollars to 109,894 million. Following this period, the debt level stabilizes somewhat with minor fluctuations around the 110,000 million mark through 2021 and 2022. Starting in early 2023, a gradual upward trend is evident, with total debt increasing consistently from 114,421 million in March 2023 to 135,731 million by June 30, 2025.

Total Capital

Total capital undergoes a steady decline from 166,613 million in March 2020 to a low point of approximately 154,924 million in December 2020. From this trough onward, the capital base recovers persistently, peaking at 193,348 million in September 2023. After this peak, capital levels experience some volatility with a slight decline toward 192,804 million by March 2025, followed by renewed growth to reach 202,094 million by June 2025.

Debt to Capital Ratio

The debt to capital ratio declines gradually from a high of 0.76 in the first two quarters of 2020 to a low near 0.61 by the end of 2023, indicating a reduction in the proportion of debt relative to total capital over this period. Beginning in early 2024, this ratio reverses course and steadily increases to 0.67 by June 2025. This suggests an increasing reliance on debt financing relative to total capital in the most recent periods, consistent with the observed rise in total debt and some fluctuations in total capital.

Summary of Financial Trends

Over the examined periods, there is an initial marked reduction in both total debt and total capital, with the debt to capital ratio concurrently declining, which reflects a stronger capital structure and reduced leverage as of late 2020 and early 2021. Subsequently, total capital generally recovers and expands, while total debt remains relatively steady before increasing again starting in 2023. The rise in the debt to capital ratio in 2024 and 2025 corresponds with increasing total debt outpacing more moderate changes in capital, indicating a shift toward higher leverage. These trends highlight phases of deleveraging and capital consolidation followed by a period of renewed debt accumulation and increasing leverage.

Total Debt

The total debt level initially shows a slight decline from March 2020, reaching a low point at the end of 2020. Following this period, it exhibits a generally upward trend with minor fluctuations. Starting from March 2021, the total debt consistently increases, peaking in June 2025. This indicates a gradual accumulation of debt over the analyzed period after an initial reduction in 2020.

Total Assets

Total assets exhibit some volatility in the early periods, with a dip observed around the middle of 2020. Post-2020, there is a steady rise in total assets until the end of 2023. Subsequently, there is a noticeable dip by early 2024, followed by a gradual recovery and rise through mid-2025. Overall, the asset base expands over the long term despite short-term decreases.

Debt to Assets Ratio

The debt to assets ratio starts at a relatively high level in early 2020, showing a decline by the end of that year. From 2021 through 2023, the ratio stabilizes around the 0.43 to 0.45 range, reflecting a balanced relationship between debt and assets during this period. However, from early 2024 onwards, the ratio increases again, approaching levels seen in early 2020 by mid-2025. This suggests that the proportion of debt relative to assets has been rising recently, indicating increasing leverage.

Overall Financial Trends

The data reflects an initial attempt to reduce debt levels in 2020, followed by a steady increase in total debt through to 2025. Meanwhile, asset growth is positive but shows some short-term volatility, particularly around 2024. The debt to assets ratio’s decline followed by stabilization and recent increase signifies periods of deleveraging, balance, and then renewed leverage. The overall pattern suggests strategic adjustments in capital structure, with recent trends pointing toward greater indebtedness relative to asset size.

The analysis of the quarterly financial data reveals several noteworthy trends regarding the asset base, equity position, and financial leverage over the observed periods.

Total Assets

Total assets exhibit a generally positive growth trend from March 31, 2020, with an initial value of approximately 246.6 billion US dollars, reaching around 289.4 billion US dollars by June 30, 2025. Although there are minor fluctuations within individual quarters—such as a slight dip around December 31, 2020, and again a decrease approaching December 31, 2023—the overarching pattern is one of steady expansion in asset holdings. This indicates ongoing capital investment or asset accumulation over the period analyzed.

Stockholders’ Equity

The equity base shows a gradual increase from approximately 40.1 billion US dollars in March 2020 to a peak exceeding 74 billion US dollars by September 2023. After this peak, a notable decline occurs, with equity decreasing to around 64.4 billion US dollars by June 2025. This drop after late 2023 could suggest distributions to shareholders, losses, or other equity reductions. Despite late-period contractions, the equity position more than generally doubled relative to the starting point, reflecting periods of capital retention and accumulation.

Financial Leverage

Financial leverage, calculated as the ratio of total assets to stockholders’ equity, shows a consistent decline from a high level of 6.15 in March 2020 to a low of approximately 3.78 in September 2023. This downward trend suggests a reduction in reliance on debt relative to equity over this timeframe, indicating strengthening balance sheet stability and potentially lower financial risk. However, from the fourth quarter of 2023 onward, the leverage ratio begins to rise again, reaching a level above 4.3 by mid-2025. This reversal may imply an increased use of debt financing or slower growth in equity compared to assets during the final observed periods.

Overall, the data reflect a company expanding its asset base while improving its equity cushion and reducing leverage until late 2023. Subsequent quarters show some contraction in equity and renewed increase in leverage, which could signal shifts in capital structure strategy or financial conditions. Close monitoring of these trends is advisable as they have direct implications for financial risk and capital adequacy.

The earnings before interest and tax (EBIT) displayed considerable volatility over the observed quarters. Initially, EBIT showed a negative value in the second quarter of 2020; however, it quickly rebounded with a sharp increase thereafter, peaking markedly in the third quarter of 2020. Following this peak, EBIT experienced fluctuations but generally maintained positive and substantial values through 2021 and 2022, with some quarters exhibiting declines and recoveries. Notably, there was a significant dip in EBIT in the second quarter of 2025, where it turned negative again, contrasting with mostly positive earnings in previous years.

Automotive interest expense presented a relatively stable trend, with values hovering around the mid-200 million US dollars range throughout most of the periods. There was a slight decrease observed starting in the second half of 2024 and into 2025, whereby interest expense diminished to approximately 150-200 million US dollars, indicating some reduction in interest-related costs during this timeframe.

The interest coverage ratio, which measures the ability to meet interest obligations from EBIT, was not reported in early quarters but showed high values when recorded, reflecting strong coverage capabilities. The ratio reached its peak in late 2020 and early 2021 and experienced minor fluctuations thereafter. Despite some downward movements later in the series, the ratio remained above 10, generally indicating a comfortable buffer for interest payments. A noticeable decline is observed in the second and third quarters of 2025, corresponding with the negative EBIT and the slight reduction in interest expense, signaling diminished ability to cover interest costs during this period.

EBIT Trend

EBIT showed high volatility with a sharp recovery after Q2 2020, several fluctuations across subsequent quarters, and an unusual negative value again in Q2 2025.

Automotive Interest Expense

Interest expenses remained relatively stable with slight decreases noted in the latter periods of 2024 and into 2025.

Interest Coverage Ratio

The coverage ratio was strong for most periods, elucidating robust earnings relative to interest obligations, though it decreased notably during the significant EBIT downturn in 2025.