Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Return on Equity (ROE) since 2010
- Current Ratio since 2010
- Price to Book Value (P/BV) since 2010
- Aggregate Accruals
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Profitability Ratios (Summary)
General Motors Co., profitability ratios (quarterly data)
Based on: 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 financial performance exhibits a distinct transition from a period of relative stability and consistent profitability between March 2022 and September 2024 to a phase of significant deterioration beginning in late 2024 and accelerating through March 2026. While margins and returns remained resilient for the first several quarters, a sharp downward trajectory is evident across all analyzed profitability metrics in the latter portion of the timeline.
- Gross and Operating Profit Margins
- Gross profit margins remained stable, fluctuating between 10.36% and 12.32% from March 2022 through December 2024. A critical decline began in June 2025 (10.60%), with the margin dropping sharply to 5.07% by March 2026. Operating profit margins followed a similar pattern, maintaining a range of 5.90% to 7.45% during the first phase before falling precipitously to 1.48% by March 2026. The convergence of these two metrics at lower levels suggests a substantial increase in production costs and operating overhead that was not offset by pricing adjustments.
- Net Profit Margin
- Net profit margins were consistently maintained between 6.33% and 8.47% until September 2024. A sudden and significant contraction occurred in December 2024, where the margin fell to 3.50%. This downward trend continued steadily, reaching a low of 1.52% by March 2026, indicating a severe compression of bottom-line profitability.
- Return on Equity (ROE)
- ROE demonstrated strong performance for the majority of the period, peaking at 16.14% in June 2024. However, a sharp reversal occurred in December 2024, with ROE dropping to 9.53%. The decline accelerated through 2025, culminating in a value of 4.05% by March 2026, reflecting a diminished capacity to generate profits from shareholders' equity.
- Return on Assets (ROA)
- ROA remained remarkably steady between 3.47% and 3.95% from March 2022 through September 2024. Similar to the other metrics, a breakdown in asset efficiency began in December 2024, falling to 2.15%. The decline continued through the end of the period, reaching a minimum of 0.90% by March 2026, signaling a decrease in the effectiveness of asset utilization in generating net income.
Return on Sales
Return on Investment
Gross Profit Margin
General Motors Co., gross profit margin calculation (quarterly data)
| 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) | |||||||||||||||||||||||
| 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-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 Q1 2026 Calculation
Gross profit margin = 100
× (Automotive and other gross marginQ1 2026
+ Automotive and other gross marginQ4 2025
+ Automotive and other gross marginQ3 2025
+ Automotive and other gross marginQ2 2025)
÷ (Automotive net sales and revenueQ1 2026
+ Automotive net sales and revenueQ4 2025
+ Automotive net sales and revenueQ3 2025
+ Automotive net sales and revenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analyzed period is characterized by an initial phase of margin stability and growth, followed by a significant contraction in profitability during the final quarters of the timeline.
- Profitability Trends 2022-2024
- Between March 2022 and December 2024, gross profit margins remained relatively stable, fluctuating within a range of 10.36% to 12.32%. The peak profitability of 12.32% was achieved in June 2023. Although a temporary dip to 10.36% occurred in December 2023, the margin recovered throughout 2024, reaching 11.97% by the end of that calendar year.
- Revenue and Absolute Margin Dynamics
- Automotive net sales and revenue exhibited a general upward trend, increasing from 32.8 billion USD in March 2022 to a peak of 44.7 billion USD in September 2024. Correspondingly, the absolute gross margin grew from 3.4 billion USD at the start of the period to a maximum of 5.7 billion USD in September 2024.
- Profitability Decline 2025-2026
- A marked deterioration in profitability is evident starting in early 2025. The gross profit margin fell from 11.61% in March 2025 to 5.07% by March 2026. This decline is underscored by a severe drop in the absolute gross margin, which collapsed throughout 2025 and reached a deficit of 1.7 billion USD in December 2025, indicating a period where the cost of automotive production exceeded net sales revenue.
Operating Profit Margin
General Motors Co., operating profit margin calculation (quarterly data)
| 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) | |||||||||||||||||||||||
| 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-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 Q1 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025)
÷ (Automotive net sales and revenueQ1 2026
+ Automotive net sales and revenueQ4 2025
+ Automotive net sales and revenueQ3 2025
+ Automotive net sales and revenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of operating profitability reveals a trajectory characterized by initial stability, a peak in operational efficiency during 2024, and a subsequent sharp decline in margins throughout 2025 and early 2026.
- Period of Relative Stability (2022–2023)
- Between March 2022 and March 2023, the operating profit margin remained relatively consistent, fluctuating within a narrow range between 6.27% and 7.24%. During this phase, operating income generally stayed between $2.1 billion and $3.4 billion, indicating a stable relationship between revenue growth and operating expenses.
- Operational Peak and Efficiency (2024)
- A trend of margin expansion is observed throughout 2024, with the operating profit margin reaching its highest point of 7.45% by December 31, 2024. This improvement coincided with a period of elevated automotive net sales and revenue, which peaked at $44.7 billion in June 2024. The alignment of peak revenue and peak margins suggests optimal capacity utilization and cost management during this fiscal year.
- Significant Margin Contraction (2025–2026)
- A severe downward trend in profitability began in June 2025. The operating profit margin fell from 6.23% in June 2025 to 1.73% by December 2025, eventually reaching a low of 1.48% in March 2026. A critical anomaly is noted in December 2025, where operating income dropped to negative $3,646 million despite revenue remaining robust at $40.9 billion. This divergence suggests that the margin collapse was driven by an acute increase in operating costs or substantial non-recurring charges rather than a failure in revenue generation.
Net Profit Margin
General Motors Co., net profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to stockholders | |||||||||||||||||||||||
| Automotive net sales and revenue | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Ford Motor Co. | |||||||||||||||||||||||
| Tesla Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Net profit margin = 100
× (Net income attributable to stockholdersQ1 2026
+ Net income attributable to stockholdersQ4 2025
+ Net income attributable to stockholdersQ3 2025
+ Net income attributable to stockholdersQ2 2025)
÷ (Automotive net sales and revenueQ1 2026
+ Automotive net sales and revenueQ4 2025
+ Automotive net sales and revenueQ3 2025
+ Automotive net sales and revenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the net profit margin reveals a consistent long-term downward trajectory over the period from March 31, 2022, to March 31, 2026. While revenue figures generally exhibited growth, the efficiency of converting those sales into net income deteriorated significantly, particularly in the latter half of the analyzed period.
- Initial Stability and Gradual Erosion (2022–Early 2024)
- From March 2022 to March 2024, the net profit margin experienced a gradual decline from a peak of 8.47% to 6.69%. During this window, profitability remained relatively stable, fluctuating within a range of approximately 6.3% to 8.5%. This period was characterized by steady automotive net sales and revenue, which grew from 32.8 billion USD to 39.2 billion USD, although the profit margin did not scale proportionally with this revenue growth.
- Accelerated Profitability Decline (Late 2024–2026)
- A sharp contraction in the net profit margin occurred starting in December 2024, where the ratio fell to 3.50%. This downturn was accompanied by significant volatility in net income, including substantial negative values in December 2024 and December 2025. Following this volatility, a steady and continuous decline is observed through 2025, with the margin falling to 1.61% by December 2025 and reaching a period low of 1.52% by March 31, 2026.
- Revenue and Income Divergence
- A divergence is observed between revenue growth and net profitability. Automotive net sales and revenue increased from approximately 32.8 billion USD in early 2022 to peak at 44.7 billion USD in September 2024. Despite these higher sales volumes, the net profit margin decreased from 8.47% to 1.52% over the full duration. This indicates that operating costs or non-operating expenses grew at a rate that far exceeded revenue growth, leading to severe margin compression.
Return on Equity (ROE)
General Motors Co., ROE calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Ford Motor Co. | |||||||||||||||||||||||
| Tesla Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
ROE = 100
× (Net income attributable to stockholdersQ1 2026
+ Net income attributable to stockholdersQ4 2025
+ Net income attributable to stockholdersQ3 2025
+ Net income attributable to stockholdersQ2 2025)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance exhibits a distinct transition from a period of relative stability in profitability to a significant downward trend in return on equity. From March 2022 through September 2024, the company maintained a consistent return on equity, generally fluctuating between 13% and 16%. However, starting in late 2024, a marked decline is observed, with the ratio falling to 4.05% by March 2026.
- Return on Equity (ROE) Trends
- A period of stability characterized by ROE values between 13.44% and 16.14% persisted for the first two and a half years of the analyzed period. A sharp reversal began in December 2024, where ROE dropped to 9.53%. This decline accelerated throughout 2025 and into early 2026, resulting in a continuous reduction of the ratio for five consecutive quarters.
- Net Income Volatility
- Profitability remained largely positive and stable between 2022 and mid-2024. A significant shift occurred in the fourth quarters of 2024 and 2025, which recorded substantial net losses of 2,961 million USD and 3,309 million USD, respectively. These periodic losses are the primary drivers behind the deterioration of the return on equity.
- Stockholders' Equity Movements
- Equity grew steadily from 62,095 million USD in March 2022 to a peak of 74,475 million USD in September 2023. Following this peak, equity experienced fluctuations and a general downward adjustment, ending at 62,659 million USD in March 2026. The contraction in equity during the periods of net losses suggests a reduction in retained earnings, although the decline in ROE was driven more aggressively by the collapse in net income than by the changes in the equity base.
The convergence of periodic substantial losses and a stabilizing equity base has led to a significant erosion of shareholder returns. The transition from a peak ROE of 16.14% in June 2024 to 4.05% in March 2026 indicates a substantial reduction in the efficiency of generating profit from shareholders' investments.
Return on Assets (ROA)
General Motors Co., ROA calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Ford Motor Co. | |||||||||||||||||||||||
| Tesla Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
ROA = 100
× (Net income attributable to stockholdersQ1 2026
+ Net income attributable to stockholdersQ4 2025
+ Net income attributable to stockholdersQ3 2025
+ Net income attributable to stockholdersQ2 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The return on assets (ROA) exhibits a distinct transition from a period of relative stability to a period of significant deterioration between March 2022 and March 2026.
- ROA Stability and Initial Performance
- From March 2022 through September 2024, the ROA remained consistently within a narrow range of 3.47% to 3.95%. During this period, net income fluctuated between approximately $1.69 billion and $3.31 billion, while the total asset base grew steadily from $251.5 billion to $289.3 billion. The maintenance of a stable ROA during this phase indicates that earnings were generally scaling in proportion to the expansion of the asset base.
- Profitability Volatility and Downward Trajectory
- A sharp decline in ROA began in December 2024, coinciding with a substantial net loss of $2.96 billion, which dropped the ratio to 2.15%. While net income returned to positive values between March and September 2025, the ROA continued a consistent downward slide, falling to 1.06% by September 2025. This negative trend was further reinforced by another severe net loss of $3.31 billion in December 2025.
- Asset Utilization and Efficiency
- The total asset base peaked at $289.4 billion in June 2025 and remained elevated, ending at $281.0 billion in March 2026. The persistent decline in ROA to a low of 0.90% by the end of the observed period suggests a significant decrease in asset efficiency. The combination of recurring large-scale losses and a larger asset denominator has fundamentally weakened the capacity to generate returns from the total investment in assets compared to the 2022-2024 baseline.