General Motors Company (GM)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	19,069,000	20,051,000	17,072,000	17,176,000
Short-term investments	US$ in thousands	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	4,174,000	6,725,000	7,049,000	6,021,000
Total current liabilities	US$ in thousands	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	84,905,000	84,252,000	84,294,000	85,303,000
Cash ratio		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	0.27	0.32	0.29	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 provides insight into General Motors Company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to meet short-term obligations.

General Motors' cash ratio has fluctuated over the past eight quarters. It was 0.40 at the end of December 2023, indicating that the company had $0.40 in cash and cash equivalents for every $1 of current liabilities. This represented a decrease from the previous quarter's ratio of 0.44, suggesting a slight decline in the company's ability to cover its short-term obligations with its available cash.

The cash ratio was at its lowest in March 2023 at 0.22, indicating a temporary challenge in meeting short-term liabilities with the available cash. However, it rebounded to 0.53 in December 2022, reflecting a significant improvement in the company's liquidity position.

Overall, while the cash ratio has fluctuated, General Motors maintained a reasonable ability to cover its short-term obligations with its cash and cash equivalents, albeit with some variability over the analyzed period. It is important for stakeholders to monitor this ratio closely to assess the company's liquidity position and its ability to meet short-term financial obligations.