General Motors Company (GM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 108,545,000 | 101,618,000 | 100,451,000 | 82,103,000 | 80,924,000 |
| Total current liabilities | US$ in thousands | 96,265,000 | 94,445,000 | 91,173,000 | 74,408,000 | 79,910,000 |
| Current ratio | 1.13 | 1.08 | 1.10 | 1.10 | 1.01 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $108,545,000K ÷ $96,265,000K
= 1.13
The current ratio of General Motors Company has exhibited a slight upward trend over the past five years, rising from 1.01 in December 31, 2020, to 1.13 in December 31, 2024. This indicates an improvement in the company's short-term liquidity position, as it suggests that General Motors has been able to maintain or increase its current assets relative to its current liabilities. A current ratio above 1.0 generally indicates that the company has more current assets than current liabilities, which is a positive sign for creditors and investors as it signifies the ability to meet short-term obligations. However, it's important to note that while the current ratio has been generally increasing, there was a slight dip in 2023 to 1.08, which could indicate a temporary strain on liquidity during that period. Nonetheless, the overall trend suggests that General Motors has been managing its short-term liquidity effectively.
Peer comparison
Dec 31, 2024