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.
Peer comparison
Dec 31, 2023