General Motors Company (GM)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	19,872,000	18,853,000	19,153,000	20,067,000	19,992,000
Short-term investments	US$ in thousands	7,265,000	7,613,000	12,150,000	8,609,000	9,046,000
Total current liabilities	US$ in thousands	96,265,000	94,445,000	91,173,000	74,408,000	79,910,000
Cash ratio		0.28	0.28	0.34	0.39	0.36

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($19,872,000K + $7,265,000K) ÷ $96,265,000K
= 0.28

General Motors Company's cash ratio has shown some fluctuations over the past five years. As of December 31, 2020, the cash ratio was 0.36, indicating that the company had $0.36 in cash and cash equivalents for every $1 of current liabilities.

The cash ratio then slightly improved to 0.39 by December 31, 2021, signaling a better ability to cover short-term obligations with cash on hand. However, by December 31, 2022, the cash ratio decreased to 0.34, suggesting a slight reduction in the company's liquidity position.

Further, by December 31, 2023, the cash ratio dropped to 0.28, indicating a decrease in the company's ability to cover its short-term liabilities with cash. This trend continued into December 31, 2024, with the cash ratio remaining at 0.28.

Overall, the fluctuating cash ratio of General Motors Company suggests varying levels of liquidity over the years, with a potential impact on the company's ability to meet its short-term financial obligations solely with its available cash resources.