General Motors Company (GM)

Cash ratio

		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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	19,872,000	23,744,000	25,168,000	20,895,000	18,853,000	25,224,000	23,074,000	18,227,000	19,153,000	20,745,000	16,710,000	16,349,000	20,067,000	17,365,000	22,920,000	21,609,000	19,992,000	26,939,000	28,228,000	38,506,000
Short-term investments	US$ in thousands	7,265,000	8,477,000	8,313,000	7,845,000	7,613,000	9,651,000	9,556,000	9,981,000	12,150,000	9,566,000	10,124,000	9,907,000	8,609,000	6,575,000	6,211,000	7,771,000	9,046,000	9,962,000	9,254,000	7,620,000
Total current liabilities	US$ in thousands	96,265,000	95,463,000	95,363,000	91,777,000	94,445,000	96,820,000	92,718,000	90,185,000	91,173,000	86,003,000	79,398,000	79,555,000	74,408,000	71,951,000	74,811,000	76,323,000	79,910,000	80,603,000	77,904,000	91,292,000
Cash ratio		0.28	0.34	0.35	0.31	0.28	0.36	0.35	0.31	0.34	0.35	0.34	0.33	0.39	0.33	0.39	0.38	0.36	0.46	0.48	0.51

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, which measures the company's ability to cover its short-term obligations with its available cash and equivalents, has exhibited fluctuations over the analyzed period.

The cash ratio had a downward trend from March 31, 2020, where it stood at 0.51, to December 31, 2024, where it decreased to 0.28. This decline indicates a potential reduction in the company's liquidity position over the period, possibly due to increased investment in fixed assets or other uses of cash.

There were some fluctuations in the cash ratio during the period, with minor increases and decreases observed. Notably, the ratio slightly improved in the middle of the period, reaching its peak at 0.39 on June 30, 2021. However, it did not sustain this level and declined thereafter.

Overall, the decreasing trend in General Motors' cash ratio suggests potential liquidity challenges or a shift in the company's cash management strategy towards utilizing cash for other investment or operational purposes. Investors and analysts may need to monitor the company's cash management closely to assess its ability to meet short-term obligations effectively.