General Motors Company (GM)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,127,000 | 9,934,000 | 10,019,000 | 6,427,000 | 6,732,000 |
| Total stockholders’ equity | US$ in thousands | 64,286,000 | 67,792,000 | 59,744,000 | 45,030,000 | 41,792,000 |
| ROE | 15.75% | 14.65% | 16.77% | 14.27% | 16.11% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $10,127,000K ÷ $64,286,000K
= 15.75%
General Motors Company's return on equity (ROE) has fluctuated over the past five years, ranging from 13.15% in 2022 to 16.47% in 2021. The ROE was 15.59% as of December 31, 2023. This measure indicates that, on average, the company generated a profit of 15.59% for each dollar of shareholder equity during the year.
The variations in ROE suggest that the company's efficiency in using shareholder equity to generate profits has experienced some instability. It is essential to analyze the factors contributing to these changes to understand the company's performance in utilizing equity to drive returns. Overall, while the ROE has shown some fluctuations, it demonstrates General Motors' capability to generate profits relative to its equity base. Tracking and understanding the reasons behind these fluctuations can provide valuable insights into the company's financial performance and management effectiveness.
Peer comparison
Dec 31, 2023