General Motors Company (GM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 18,853,000 | 19,153,000 | 20,067,000 | 19,992,000 | 19,069,000 |
| Short-term investments | US$ in thousands | 7,613,000 | 12,150,000 | 8,609,000 | 9,046,000 | 4,174,000 |
| Receivables | US$ in thousands | 12,378,000 | 13,333,000 | 7,394,000 | 8,035,000 | 6,797,000 |
| Total current liabilities | US$ in thousands | 94,445,000 | 91,173,000 | 74,408,000 | 79,910,000 | 84,905,000 |
| Quick ratio | 0.41 | 0.49 | 0.48 | 0.46 | 0.35 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($18,853,000K
+ $7,613,000K
+ $12,378,000K)
÷ $94,445,000K
= 0.41
The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. General Motors Company's quick ratio has fluctuated over the past five years, indicating changes in its short-term liquidity position.
As of December 31, 2023, the quick ratio stands at 0.48, reflecting a decline from the previous year. This decrease suggests a reduction in General Motors' ability to cover its short-term liabilities with its most liquid assets.
In comparison to 2022, where the quick ratio was 0.62, the 2023 ratio signals a potential decrease in liquidity. Further analysis is recommended to understand the factors contributing to this decline and to assess the implications for the company's financial health.
Peer comparison
Dec 31, 2023