General Motors Company (GM)

Current 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
Total current assets	US$ in thousands	101,618,000	110,721,000	106,804,000	98,832,000	100,451,000	98,271,000	91,094,000	88,594,000	82,103,000	77,791,000	82,609,000	82,091,000	80,924,000	89,177,000	87,497,000	97,699,000	74,992,000	80,565,000	81,306,000	80,090,000
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
Current ratio		1.08	1.14	1.15	1.10	1.10	1.14	1.15	1.11	1.10	1.08	1.10	1.08	1.01	1.11	1.12	1.07	0.88	0.96	0.96	0.94

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $101,618,000K ÷ $94,445,000K
= 1.08

The current ratio of General Motors Company has fluctuated over the past eight quarters, indicative of changes in the company's liquidity position. The current ratio, which measures the company's ability to meet its short-term liabilities with its short-term assets, has shown a general upward trend from the first quarter of 2022 to the third quarter of 2023, reaching a peak of 1.21 in the fourth quarter of 2022 before declining slightly in subsequent quarters.

The ratio's increase suggests an improvement in the company's ability to cover its short-term obligations with its current assets. However, the fluctuation in the ratio raises concerns about the company's short-term liquidity management. For instance, the ratio dropped to 0.89 in the first quarter of 2022, signaling potential challenges in meeting short-term obligations with available current assets.

While a current ratio above 1 indicates a company's ability to meet short-term obligations, the varying levels observed in the recent quarters warrant further examination of General Motors' working capital management and the composition of its current assets compared to its current liabilities. This analysis, when coupled with other financial metrics, will offer a more comprehensive understanding of the company's liquidity position.