General Motors Company (GM)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	19,872,000	18,853,000	19,153,000	20,067,000	19,992,000
Short-term investments	US$ in thousands	7,265,000	7,613,000	12,150,000	8,609,000	9,046,000
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	96,265,000	94,445,000	91,173,000	74,408,000	79,910,000
Quick ratio		0.28	0.28	0.34	0.39	0.36

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($19,872,000K + $7,265,000K + $—K) ÷ $96,265,000K
= 0.28

The quick ratio, also known as the acid-test ratio, provides insight into a company's short-term liquidity and ability to meet its immediate obligations without relying on inventory sales. Analyzing General Motors Company's quick ratio over the years reveals a fluctuating pattern.

As of December 31, 2020, the quick ratio stood at 0.36, indicating that for every dollar of current liabilities, General Motors had $0.36 in liquid assets readily available to cover those obligations. The quick ratio improved slightly to 0.39 by the end of 2021, suggesting a better short-term liquidity position compared to the previous year.

However, the quick ratio declined to 0.34 by December 31, 2022, and further dropped to 0.28 by the end of both 2023 and 2024. This downward trend indicates a reduction in General Motors' ability to cover its short-term liabilities with its most liquid assets, which may raise concerns about the company's liquidity management.

Overall, General Motors Company's quick ratio has exhibited volatility in recent years, potentially signaling challenges in maintaining sufficient liquid assets to meet its immediate financial obligations. It is essential for stakeholders to monitor this ratio closely to assess the company's liquidity position and financial health accurately.