General Motors Company (GM)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	6,008,000	10,022,000	9,934,000	10,019,000	6,427,000
Total stockholders’ equity	US$ in thousands	63,072,000	64,286,000	67,792,000	59,744,000	45,030,000
ROE		9.53%	15.59%	14.65%	16.77%	14.27%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $6,008,000K ÷ $63,072,000K
= 9.53%

General Motors Company's return on equity (ROE) has shown fluctuations over the five-year period from 2020 to 2024.

- In 2020, the ROE was 14.27%, indicating that for every dollar of shareholders' equity, the company generated a return of 14.27%.
- The ROE improved to 16.77% in 2021, suggesting an increase in shareholder value creation.
- However, in 2022, the ROE decreased slightly to 14.65%, which may indicate a lower level of profitability relative to equity.
- The following year, in 2023, the ROE increased to 15.59%, pointing towards a recovery in profitability.
- In 2024, the ROE dropped to 9.53%, signaling a significant decline in the company's ability to generate profits from shareholders' equity.

Overall, General Motors Company's ROE performance has been somewhat volatile, with fluctuations in profitability and efficiency in generating returns for shareholders over the five-year period. It is crucial for investors and stakeholders to closely monitor these trends to assess the company's financial health and performance.