General Motors Company (GM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.49% | 17.76% | 13.39% | 14.08% | 11.16% |
| Operating profit margin | 6.82% | 5.41% | 6.58% | 10.76% | 7.29% |
| Pretax margin | 4.54% | 6.05% | 7.40% | 10.01% | 6.61% |
| Net profit margin | 3.21% | 5.83% | 6.34% | 7.89% | 5.25% |
General Motors Company's profitability ratios show fluctuations over the years. The gross profit margin increased from 11.16% in 2020 to 17.76% in 2023 before decreasing to 12.49% in 2024. This indicates the company's ability to control direct costs related to production.
The operating profit margin improved from 7.29% in 2020 to 10.76% in 2021, but then declined to 6.82% in 2024. This metric reflects the efficiency of General Motors' core operations in generating profits.
The pretax margin peaked at 10.01% in 2021 but fell to 4.54% in 2024. This ratio shows the company's ability to generate profits before accounting for taxes.
The net profit margin also exhibited a declining trend, decreasing from 5.25% in 2020 to 3.21% in 2024. This ratio reflects General Motors' bottom-line profitability after accounting for all expenses.
In conclusion, General Motors Company's profitability ratios have shown mixed performance over the years, indicating varying levels of efficiency in generating profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.57% | 3.41% | 3.91% | 5.58% | 3.80% |
| Return on assets (ROA) | 2.15% | 3.67% | 3.76% | 4.09% | 2.73% |
| Return on total capital | 14.85% | 14.46% | 18.56% | 22.87% | 20.42% |
| Return on equity (ROE) | 9.53% | 15.59% | 14.65% | 16.77% | 14.27% |
General Motors Company has shown an improvement in its profitability ratios over the years.
- Operating return on assets (Operating ROA) has increased from 3.80% in December 31, 2020, to 5.58% in December 31, 2021. However, it decreased slightly to 3.91% in December 31, 2022, and further to 3.41% in December 31, 2023, before rising to 4.57% in December 31, 2024. This indicates that the company's operating performance in generating profit from its assets has fluctuated but generally improved.
- Return on assets (ROA) has also shown a positive trend, starting at 2.73% in December 31, 2020, and increasing to 4.09% in December 31, 2021. However, it decreased to 3.76% in December 31, 2022, further to 3.67% in December 31, 2023, and dropped to 2.15% in December 31, 2024. The ROA ratio reflects the company's ability to generate profit from its total assets, and the fluctuation in this ratio indicates some variability in the company's overall profitability.
- Return on total capital has also displayed a relatively positive performance, starting at 20.42% in December 31, 2020, and increasing to 22.87% in December 31, 2021. However, it decreased to 18.56% in December 31, 2022, further to 14.46% in December 31, 2023, and then slightly rose to 14.85% in December 31, 2024. This ratio reflects the company's profitability in relation to its total invested capital.
- Return on equity (ROE) has shown fluctuation, starting at 14.27% in December 31, 2020, and increasing to 16.77% in December 31, 2021. However, it decreased to 14.65% in December 31, 2022, increased to 15.59% in December 31, 2023, before dropping to 9.53% in December 31, 2024. The ROE ratio indicates the company's ability to generate profit from shareholders' equity. The varying trend in this ratio suggests variability in the company's profitability performance in relation to its equity.
Overall, General Motors Company has demonstrated some level of profitability improvement over the years, albeit with fluctuations in its profitability ratios. A deeper analysis of the underlying factors contributing to these fluctuations would provide additional insights into the company's financial performance.