Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
General Motors Co., profitability ratios (quarterly data)
Based on: 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 profitability metrics exhibited fluctuating performance over the observed period, spanning from March 2022 to December 2025. Initial values generally demonstrated strength, followed by a period of decline and stabilization, culminating in a noticeable decrease in the most recent quarters. A consistent pattern of seasonal variation is not readily apparent across all ratios.
- Gross Profit Margin
- The gross profit margin began at 10.71% in March 2022 and generally increased through December 2022, peaking at 11.87%. A subsequent decline was observed through December 2023, reaching 10.36%. This trend continued into 2024 and 2025, with a significant drop to 5.26% by December 2025, indicating increasing cost pressures or decreasing pricing power.
- Operating Profit Margin
- Similar to the gross profit margin, the operating profit margin showed initial strength, moving from 7.02% to 7.27% between March 2022 and June 2023. It then experienced a decline, reaching 5.90% by December 2023. The downward trend accelerated in 2024 and 2025, with the margin falling to 1.73% by December 2025. This suggests increasing operating expenses relative to revenue.
- Net Profit Margin
- The net profit margin mirrored the trends of the gross and operating profit margins. Starting at 8.47% in March 2022, it decreased to 6.42% by December 2023, and then experienced a substantial decline to 1.61% by December 2025. This indicates a weakening ability to translate revenue into net income.
- Return on Equity (ROE)
- ROE demonstrated a generally decreasing trend. After fluctuating between 13.75% and 16.08% in the period from March 2022 to December 2023, it experienced a significant reduction, falling to 4.41% by December 2025. This suggests a diminishing return on shareholder investment.
- Return on Assets (ROA)
- ROA followed a similar pattern to ROE, exhibiting a decline from 3.95% in March 2022 to 0.96% by December 2025. This indicates a decreasing efficiency in utilizing assets to generate profit.
Collectively, the observed trends suggest a deterioration in profitability across all measured ratios. The accelerating declines in the latter periods warrant further investigation into the underlying causes, such as increased costs, decreased revenue, or changes in capital structure.
Return on Sales
Return on Investment
Gross Profit Margin
General Motors Co., gross profit margin calculation (quarterly data)
| 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) | |||||||||||||||||||||
| Automotive and other gross margin | |||||||||||||||||||||
| Automotive net sales and revenue | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Ford Motor Co. | |||||||||||||||||||||
| Tesla Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Gross profit margin = 100
× (Automotive and other gross marginQ4 2025
+ Automotive and other gross marginQ3 2025
+ Automotive and other gross marginQ2 2025
+ Automotive and other gross marginQ1 2025)
÷ (Automotive net sales and revenueQ4 2025
+ Automotive net sales and revenueQ3 2025
+ Automotive net sales and revenueQ2 2025
+ Automotive net sales and revenueQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit margin exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. An initial period of relative stability is followed by a period of increasing margins, then a significant decline towards the end of the analyzed timeframe.
- Initial Stability and Growth (Q1 2022 - Q2 2023)
- From March 31, 2022, through June 30, 2023, the gross profit margin remained within a narrow range, fluctuating between 10.43% and 12.32%. This suggests a period of consistent profitability in relation to the cost of goods sold. A slight upward trend is discernible during this period, peaking at 12.32% in June 2023.
- Peak and Subsequent Decline (Q3 2023 - Q4 2025)
- Following the peak in June 2023, the gross profit margin began a noticeable decline. It decreased from 11.96% in September 2023 to 5.26% by December 2025. This represents a substantial reduction in profitability. A particularly sharp decrease is observed between September 2025 (8.63%) and December 2025 (5.26%). The final reported value indicates a loss, with a negative gross profit margin of -1.727% in December 2025.
- Underlying Automotive Performance
- The automotive net sales and revenue generally increased from March 2022 to June 2024, peaking at US$44.735 million. However, revenue decreased in subsequent quarters, reaching US$40.985 million by December 2025. While automotive gross margin generally followed the revenue trend, the magnitude of the decline in gross margin outpaced the decline in revenue in the latter part of the period, contributing to the reduced gross profit margin.
- Quarterly Variations
- The fourth quarter of each year consistently showed variations in gross profit margin. The margin peaked at 11.87% in December 2022, but experienced a significant drop to 10.36% in December 2023, and a further substantial decline to 5.26% in December 2025. This suggests potential seasonal factors or year-end adjustments impacting profitability.
In summary, the gross profit margin demonstrated a period of stability and modest growth, followed by a pronounced and accelerating decline, culminating in a negative margin in the final reported quarter. This trend warrants further investigation to determine the underlying causes, such as increased production costs, pricing pressures, or shifts in product mix.
Operating Profit Margin
General Motors Co., operating profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating income | |||||||||||||||||||||
| Automotive net sales and revenue | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Ford Motor Co. | |||||||||||||||||||||
| Tesla Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (Automotive net sales and revenueQ4 2025
+ Automotive net sales and revenueQ3 2025
+ Automotive net sales and revenueQ2 2025
+ Automotive net sales and revenueQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibited fluctuations over the observed period, demonstrating both periods of expansion and contraction. Initial values indicated a margin around 7% in the first quarter of 2022, followed by a slight decrease in the subsequent quarter. The latter half of 2022 saw a recovery, peaking at 7.16% by the end of the year.
- Overall Trend (2022-2025)
- From the beginning of 2022 through the end of 2024, the operating profit margin generally trended upwards, reaching a high of 7.45% in the fourth quarter of 2024. However, a significant decline is observed in the first half of 2025, culminating in a margin of 1.73% by the end of 2025. This represents a substantial contraction from the peak observed earlier.
A period of relative stability is apparent in the first half of 2023, with the margin hovering around 7.2%. The third quarter of 2023 showed a slight decrease to 6.95%, followed by a more pronounced drop to 5.90% in the fourth quarter of 2023. This decline suggests potential headwinds impacting profitability during that period.
- 2024 Performance
- The year 2024 demonstrated a strong recovery in operating profit margin. The first quarter showed an increase to 6.53%, followed by consistent growth throughout the year, peaking at 7.45% in the fourth quarter. This indicates successful implementation of cost control measures or increased revenue generation during this period.
The final quarter of 2025 reveals a considerable decrease in operating profit margin, falling to 1.73%. This represents a significant shift from the preceding quarters and warrants further investigation to determine the underlying causes, such as increased costs, decreased sales volume, or unfavorable pricing pressures. The negative value in the final quarter suggests operating losses.
- Volatility
- The operating profit margin demonstrates a degree of volatility throughout the period. While periods of stability exist, the significant fluctuations, particularly the decline in late 2023 and the dramatic drop in late 2025, suggest sensitivity to external factors or internal operational changes.
The operating profit margin’s performance in the observed period is characterized by an initial period of moderate fluctuation, followed by a strong upward trend in 2024, and a subsequent, substantial decline in 2025. This pattern suggests a dynamic business environment and the need for continuous monitoring of key performance indicators.
Net Profit Margin
General Motors Co., net profit margin calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Automotive net sales and revenue | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Ford Motor Co. | |||||||||||||||||||||
| Tesla Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Net profit margin = 100
× (Net income attributable to stockholdersQ4 2025
+ Net income attributable to stockholdersQ3 2025
+ Net income attributable to stockholdersQ2 2025
+ Net income attributable to stockholdersQ1 2025)
÷ (Automotive net sales and revenueQ4 2025
+ Automotive net sales and revenueQ3 2025
+ Automotive net sales and revenueQ2 2025
+ Automotive net sales and revenueQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the margin demonstrated a gradual decline from 8.47% in the first quarter of 2022 to 6.90% by the end of that year. A period of relative stability followed in the first half of 2023, with margins hovering around the 6.35% to 6.56% range. The third quarter of 2023 saw a slight increase to 6.33%, followed by a minor rise to 6.42% in the fourth quarter. The first half of 2024 showed further improvement, peaking at 6.80% in June, before settling at 6.62% in September. However, a significant downturn occurred in the fourth quarter of 2024, with the net profit margin plummeting to 3.50%. This negative trend continued into 2025, with margins decreasing to 2.79% and 1.79% in the first and second quarters, respectively, before reaching 1.61% in the final quarter.
- Overall Trend
- The overall trend indicates a weakening of profitability towards the end of the analyzed period. While the margin remained relatively stable between approximately 6.3% and 6.8% for several quarters, the substantial decline in late 2024 and throughout 2025 suggests increasing pressure on earnings relative to revenue.
- Peak Performance
- The highest net profit margin recorded during the period was 8.47%, achieved in March 2022. This represents the most profitable quarter observed within the timeframe.
- Lowest Performance
- The lowest net profit margin was -3.309% in December 2025, indicating a net loss when considered as a percentage of net sales and revenue. This represents the least profitable quarter observed within the timeframe.
- Year-over-Year Comparison (2022 vs. 2023)
- Comparing the final quarter of 2022 (6.90%) to the final quarter of 2023 (6.42%), a slight decrease in net profit margin is observed. However, the overall annual performance in 2023 remained relatively consistent with 2022.
- Recent Performance (2024 vs. 2025)
- A marked contrast exists between 2024 and 2025. While the first three quarters of 2024 showed a slight upward trend, the fourth quarter experienced a dramatic decline. This negative momentum continued and accelerated throughout 2025, culminating in a significantly reduced net profit margin by the end of the period.
Return on Equity (ROE)
General Motors Co., ROE calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Ford Motor Co. | |||||||||||||||||||||
| Tesla Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
ROE = 100
× (Net income attributable to stockholdersQ4 2025
+ Net income attributable to stockholdersQ3 2025
+ Net income attributable to stockholdersQ2 2025
+ Net income attributable to stockholdersQ1 2025)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited fluctuating performance over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initial values demonstrated a generally decreasing trend through the first half of 2023, followed by periods of increase and then a significant decline towards the end of the observation window.
- Initial Performance (Mar 31, 2022 – Dec 31, 2022)
- ROE began at 16.00% in March 2022, experiencing a decline to 13.75% by June 2022. A subsequent increase to 14.83% was observed in September 2022, followed by a slight decrease to 14.65% by the end of the year. This initial period suggests moderate, albeit volatile, profitability relative to shareholder equity.
- Fluctuations and Mid-Period Stability (Mar 31, 2023 – Dec 31, 2023)
- The ROE decreased to 13.44% in March 2023, then rose to 14.32% in June 2023. A further slight decline to 13.46% occurred in September 2023, before a notable increase to 15.75% in December 2023. This period indicates some recovery in profitability, though with continued quarterly variation.
- Significant Decline (Mar 31, 2024 – Dec 31, 2025)
- ROE values remained relatively stable in the first half of 2024, at 16.08% and 16.14% respectively. However, a substantial decrease to 9.53% was observed in December 2024. This downward trend continued into 2025, with ROE falling to 9.03% in March, 7.19% in June, 4.59% in September, and reaching a low of 4.41% by December 2025. This represents a significant deterioration in returns to shareholders.
- Net Income and Equity Relationship
- The decline in ROE towards the end of the period appears to be driven by a combination of decreasing net income attributable to stockholders and fluctuations in stockholders’ equity. While equity generally increased through much of 2024, the substantial net loss reported in December 2024 significantly impacted the ROE calculation, and this trend continued with a further net loss in December 2025.
Overall, the ROE demonstrates a clear shift from moderate profitability in the earlier periods to a concerning decline in the latter portion of the analyzed timeframe. The substantial decrease in ROE in the final quarters warrants further investigation into the underlying causes, particularly the factors contributing to the reported net losses.
Return on Assets (ROA)
General Motors Co., ROA calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Ford Motor Co. | |||||||||||||||||||||
| Tesla Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
ROA = 100
× (Net income attributable to stockholdersQ4 2025
+ Net income attributable to stockholdersQ3 2025
+ Net income attributable to stockholdersQ2 2025
+ Net income attributable to stockholdersQ1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a generally stable pattern between March 31, 2022, and December 31, 2023, fluctuating within a relatively narrow range. However, a noticeable downward trend emerged in the subsequent periods, culminating in negative values by December 31, 2025. This analysis details the observed trends and potential implications.
- Initial Period (Mar 31, 2022 – Dec 31, 2023)
- ROA began at 3.95% in March 2022, experienced a slight decline to 3.47% by June 2022, and then recovered to 3.71% and 3.76% in the following two quarters. The ratio remained relatively consistent throughout 2023, oscillating between 3.52% and 3.92%. This suggests a period of consistent, albeit modest, profitability relative to the asset base.
- Transition and Decline (Mar 31, 2024 – Jun 30, 2025)
- Starting in March 2024, ROA showed a slight increase to 3.87%, followed by 3.92% in June 2024. However, a significant shift occurred in the latter half of 2024, with a substantial decrease to 2.15% by December 2024. This downward trajectory continued into 2025, with ROA values of 2.06%, 1.65%, 1.06%, and ultimately reaching -3.309% by December 31, 2025. This indicates a deteriorating ability to generate earnings from its assets.
- Net Income and Total Assets Relationship
- The decline in ROA appears to be driven by a combination of factors. While total assets generally increased over the period, net income attributable to stockholders experienced a significant decline in the latter quarters, particularly in December 2024 and December 2025. The negative net income reported in December 2024 and December 2025 directly contributed to the negative ROA values observed during those periods. The increase in total assets without a corresponding increase in net income exacerbated the decline in ROA.
- Overall Trend
- The overall trend indicates a weakening of profitability relative to asset utilization. The initial stability gave way to a pronounced decline, culminating in a loss-making position as measured by ROA in the final reported period. Further investigation into the factors driving the decline in net income is warranted.