General Motors Company (GM)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	18,853,000	19,153,000	20,067,000	19,992,000	19,069,000
Short-term investments	US$ in thousands	7,613,000	12,150,000	8,609,000	9,046,000	4,174,000
Total current liabilities	US$ in thousands	94,445,000	91,173,000	74,408,000	79,910,000	84,905,000
Cash ratio		0.28	0.34	0.39	0.36	0.27

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($18,853,000K + $7,613,000K) ÷ $94,445,000K
= 0.28

The cash ratio of General Motors Company has exhibited fluctuations over the past five years. The ratio, which measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, decreased from 0.63 in 2021 to 0.40 in 2023. This decline may raise concerns about the company's liquidity position. It's worth noting that the 2021 ratio was the highest among the five years, indicating a strong ability to meet short-term obligations with available cash. However, the subsequent decrease suggests a potential decrease in the company's liquidity buffer. Further analysis of the company's cash management and short-term debt structure would be beneficial to fully assess its liquidity position.