General Motors Company (GM)

Quick ratio

		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	US$ in thousands	19,872,000	23,744,000	25,168,000	20,895,000	18,853,000	25,224,000	23,074,000	18,227,000	19,153,000	20,745,000	16,710,000	16,349,000	20,067,000	17,365,000	22,920,000	21,609,000	19,992,000	26,939,000	28,228,000	38,506,000
Short-term investments	US$ in thousands	7,265,000	8,477,000	8,313,000	7,845,000	7,613,000	9,651,000	9,556,000	9,981,000	12,150,000	9,566,000	10,124,000	9,907,000	8,609,000	6,575,000	6,211,000	7,771,000	9,046,000	9,962,000	9,254,000	7,620,000
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	96,265,000	95,463,000	95,363,000	91,777,000	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
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

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

General Motors Company's quick ratio, which measures its ability to meet short-term obligations with its most liquid assets, has fluctuated over the past few years. Starting at 0.51 in March 2020, the quick ratio declined steadily to 0.28 by December 2024. This suggests that GM may have had challenges in maintaining its short-term liquidity over this period. However, it is important to note that a quick ratio below 1 may indicate potential difficulties in meeting immediate liabilities without relying on selling inventory or receiving payments from customers. GM should closely monitor its quick ratio and take appropriate measures to ensure it remains at a healthy level to support its financial health and operations.