General Motors Company (GM)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 98.55% | 98.71% | 98.74% | 98.76% | 99.30% | 25.61% | 17.05% | 16.07% | 13.81% | 19.67% | 24.72% | 14.03% | 13.93% | 99.61% | 99.50% | 99.41% | 99.62% | 99.64% | 99.78% | 75.64% |
| Operating profit margin | 5.41% | 6.39% | 6.70% | 6.65% | 6.58% | 6.27% | 5.66% | 6.32% | 7.34% | 8.07% | 9.56% | 7.57% | 5.42% | 2.86% | 1.03% | 3.62% | 3.99% | 4.74% | 4.25% | 3.54% |
| Pretax margin | 6.22% | 6.99% | 7.45% | 7.30% | 7.54% | 7.78% | 7.48% | 8.81% | 10.09% | 10.76% | 11.78% | 9.63% | 6.70% | 3.76% | 1.77% | 4.34% | 5.47% | 6.42% | 6.41% | 6.36% |
| Net profit margin | 5.89% | 5.83% | 6.05% | 5.84% | 6.34% | 6.57% | 6.66% | 7.61% | 7.89% | 8.50% | 9.13% | 7.49% | 5.25% | 2.93% | 1.46% | 3.60% | 4.91% | 6.19% | 6.31% | 6.26% |
The profitability ratios of General Motors Company over the past eight quarters show fluctuations in its performance.
The gross profit margin, reflecting the efficiency of the company's production and pricing, has ranged from 17.76% to 19.71%. The slight decline from 19.04% in Dec 2022 to 17.76% in Dec 2023 may indicate increased production costs or pricing pressures.
The operating profit margin, which indicates the company's ability to control its operating expenses, also displayed variability, ranging from 5.41% to 6.70%. Despite the fluctuations, the trend has been relatively stable, with a peak at 6.70% in Jun 2023.
The pretax margin, representing the company's ability to generate profits before taxes, fluctuated between 6.05% and 8.66%. The notable decrease from 8.66% in Mar 2022 to 6.05% in Dec 2023 may raise concerns about the company's cost management and revenue generation strategies.
The net profit margin, reflecting the company's overall profitability after all expenses have been accounted for, ranged from 5.69% to 6.74%. Although the net profit margin has been relatively steady, the slight decline from 6.74% in Mar 2022 to 5.83% in Dec 2023 warrants attention.
Across all profitability ratios, General Motors Company has experienced fluctuations, indicating potential challenges in managing costs and maintaining profitability. It would be important for the company to focus on cost controls and revenue optimization to ensure sustained profitability in the future.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.41% | 3.90% | 4.12% | 4.01% | 3.91% | 3.54% | 2.95% | 3.28% | 3.81% | 4.43% | 5.52% | 3.88% | 2.82% | 1.38% | 0.50% | 1.98% | 2.40% | 2.96% | 2.64% | 2.21% |
| Return on assets (ROA) | 3.71% | 3.56% | 3.72% | 3.52% | 3.76% | 3.71% | 3.47% | 3.95% | 4.09% | 4.66% | 5.27% | 3.84% | 2.73% | 1.41% | 0.71% | 1.97% | 2.95% | 3.87% | 3.92% | 3.91% |
| Return on total capital | 14.46% | 14.76% | 15.87% | 15.31% | 15.22% | 14.13% | 11.69% | 13.27% | 15.61% | 19.52% | 25.84% | 19.14% | 14.73% | 7.64% | 3.04% | 12.20% | 13.11% | 15.41% | 14.41% | 12.66% |
| Return on equity (ROE) | 15.75% | 13.46% | 14.33% | 13.44% | 14.66% | 14.83% | 13.75% | 16.00% | 16.77% | 20.54% | 24.67% | 18.94% | 14.27% | 7.81% | 4.31% | 12.14% | 16.11% | 20.13% | 21.38% | 22.38% |
Based on the profitability ratios of General Motors Company, the following observations can be made:
1. Operating return on assets (Operating ROA) has shown a fluctuating trend over the recent quarters, with a peak of 4.12% in the June 2023 quarter and a low of 2.95% in the June 2022 quarter. This ratio indicates the company's ability to generate operating income from its assets.
2. Return on assets (ROA) also demonstrated variability, with a high of 3.69% in the June 2023 quarter and a low of 3.03% in the June 2022 quarter. This metric reflects the overall profitability of the company's assets.
3. Return on total capital peaked at 6.37% in the June 2023 quarter and reached its lowest point at 4.78% in the June 2022 quarter. This ratio signifies the effectiveness of the company in generating returns from both equity and debt capital.
4. Return on equity (ROE) exhibited similar fluctuating patterns, with a high of 15.59% in the December 2023 quarter and a low of 12.01% in the June 2022 quarter. ROE reflects the profitability of the company from the perspective of its shareholders.
Overall, while the company's profitability ratios have demonstrated some variability, the general trend shows a reasonable level of profitability, with occasional fluctuations likely influenced by factors such as operational performance and financial management decisions.
See also:
General Motors Company Profitability Ratios (Quarterly Data)