General Motors Company (GM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 101,618,000 | 100,451,000 | 82,103,000 | 80,924,000 | 74,992,000 |
| Total current liabilities | US$ in thousands | 94,445,000 | 91,173,000 | 74,408,000 | 79,910,000 | 84,905,000 |
| Current ratio | 1.08 | 1.10 | 1.10 | 1.01 | 0.88 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $101,618,000K ÷ $94,445,000K
= 1.08
The current ratio, which measures General Motors Company's ability to meet its short-term obligations with its current assets, has shown some fluctuations in recent years.
The current ratio decreased from 1.21 in 2022 to 1.10 in 2023, indicating a potential decline in the company's short-term liquidity position. However, it's important to note that the current ratio was higher in 2023 compared to 2019, showing an improvement over the long term.
A current ratio above 1.0 suggests that General Motors Company has more current assets than current liabilities, which is generally considered a positive sign. While the decreasing trend in the current ratio may raise concerns about the company's short-term liquidity, it's essential to consider other factors such as the nature of industry and the company's specific business model before drawing definitive conclusions.
Peer comparison
Dec 31, 2023