General Motors Financial Performance from Time to Time

General Motors Financial Performance from Time to Time

General Motors Financial Performance from Time to Time- General Motors Company (GM) is a multinational automotive manufacturing company headquartered in Detroit, Michigan, United States. Historically, it was founded on September 16th, 1908, by William C. Durant, Charles Stewart Mott, and Frederic L. Smith.

General Motors Financial Performance from Time to Time- GM and Brand products

Along with the development of the business, General Motors has some vehicle brands, namely Baojun, Buick, Cadillac, Chevrolet, and Wuling. In its business, this company design, build and sell trucks, crossovers, cars, and automobile parts and provide software-enabled services and subscriptions worldwide. Totally, there are 122 Facilities and 4,232 dealers in the USA. Based on the workforce of the company, General Motors has employed around 157,000 across the globe. Most of the employees are in the USA with eighty-nine thousand employees.

The Assets, Liabilities, and Equities of General Motors

YearsAssetsLiabilitiesEquities
Millon US DollarsMillon US DollarsMillon US Dollars
200891,039176,115-85,076
2009136,295107,34028,955
2010138,988101,73937,249
2011144,603105,61238,991
2012149,422112,42237,000
2013166,344123,17043,174
2014177,501141,47736,024
2015194,520154,19740,323
2016221,690176,61545,075
2017212,482176,28236,200
2018227,339184,56242,777
2019228,307182,08046,227
2020235,194185,51749,677
2021244,718178,90365,815
Source : General Motors Annual Report, 2008-2021

Financially, based on the financial fundamentals of General Motors, this company in 2021 has positive structures. Although this company experienced negative performance in 2008, they can manage and improve their structures. In 2021, the assets of the company are 244 billion US dollars and the liabilities of the company are 178 billion US dollars. The scars of the company happened in 2008 when the equity of the company have a negative value of – 85 billion US dollars.

General Motors Financial Performance from Time to Time- Debt to Equity Ratio (DER) and Debt to Assets Ratio (DAR)

Based on some financial ratios (Debt to Asset Ratios and Debt to Equity Ratio), most of the values showed stable performance. The average value of the Debt-to-asset ratio is 0.86. This value means that the percentage of liabilities is 86% of the Assets. Meanwhile, the debt-to-equity ratio is about 3.12. This value means that the value of liabilities is 300% or 3 times the equity.

The Revenue and Net Income of General Motors

YearsRevenueNet Income
Millon US DollarsMillon US Dollars
2008148,479-31,051
200957,474-4,863
2010135,5926,503
2011150,2769,287
2012152,2566,136
2013155,4275,331
2014155,9294,018
2015135,7259,615
2016149,1849,268
2017145,588-3,882
2018147,0498,005
2019137,2376,667
2020122,4856,321
2021127,0049,945
Source : General Motors Annual Report, 2008-2021

Based on the financial performance of General Motors, the company showed some negative performance in 2008, 2009, and 2017 and in the rest of these years, this company experienced a net income. In 2021, this company has a revenue of 127 billion US Dollars, with a net income of around 9.9 billion US Dollars.

General Motors Financial Performance from Time to Time- Net Profit Margin (NPM), Return on Assets (ROA), Retun on Equity (ROE)

In some financial ratios, the company has some value of it. The average Net Profit Margin is about 0.018. This value means that the net income is 1.8% of its revenue. In other interpretation, every one US Dollar of Revenue can become a net income of about 0.018 US dollars. Meanwhile, the average Return on Assets (ROA) and Return of Equity (ROE) are about 0.02 and 0.14, respectively. This ROA of 0.02 means that the net income of the company is around 2% of its Assets. With every asset that has been used, the company can generate a net income of around 2%. Furthermore, the Return of Equity (ROE) is about 0.14. It means that the net income of the company comes from equity is 14%.

Bibliography of General Motors Financial Performance from Time to Time

Wikipedia. 2022. General Motors. Accessed via https://en.wikipedia.org/wiki/General_Motors  on April 25th, 2022.

General Motors. 2022. SEC Filings. Accessed via https://investor.gm.com/sec-filings  on April 25th, 2022.

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