General Motors Company (GM)

Liquidity ratios

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
Current ratio 1.13 1.21 1.18 1.16 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
Quick 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
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

General Motors Company's liquidity ratios indicate its ability to meet short-term obligations and manage its operating cash flows effectively. The current ratio has been relatively stable over the past few years, ranging from 1.01 to 1.21, with the latest value at 1.13 as of December 31, 2024. This suggests that the company has a solid ability to cover its current liabilities with its current assets.

On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown more variability, ranging from 0.28 to 0.39. As of December 31, 2024, the quick ratio stands at 0.28, indicating that the company may have difficulty meeting its short-term obligations without relying on inventory sales.

The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents, also displays variability, ranging from 0.28 to 0.51, with the latest value at 0.28 as of December 31, 2024. This suggests that General Motors Company may have limited cash reserves to cover its immediate liabilities.

Overall, while the current ratio indicates a healthy short-term liquidity position for General Motors, the quick and cash ratios highlight potential challenges in meeting immediate obligations without relying on inventory or increasing cash reserves. Monitoring and managing these ratios will be crucial in ensuring the company's liquidity stability moving forward.

See also:

General Motors Company Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 32.41 39.31 41.63 42.10 40.12 43.99 44.36 46.52 41.31 46.59 53.42 47.92 43.44 47.30 40.32 41.50 34.33 37.90 35.06 32.36

The cash conversion cycle of General Motors Company has shown some fluctuations over time according to the provided data. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 2020 to December 2024, the cash conversion cycle for General Motors ranged from a low of 32.36 days to a high of 53.42 days. Generally, a shorter cash conversion cycle is preferable as it indicates that the company is able to efficiently manage its inventory and collect payments from customers.

The trend in General Motors' cash conversion cycle over the period shows some variability. There are periods where the cycle increased, indicating potential challenges in managing inventory, accounts receivable, and accounts payable efficiently. Conversely, there are also periods where the cycle decreased, suggesting improvements in working capital management.

Overall, a thorough analysis of the factors influencing the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable payment period, would provide a clearer understanding of General Motors' working capital management and operational efficiency.