General Motors Company (GM)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	9,298,000	10,991,000	11,370,000	10,697,000	10,315,000	9,224,000	7,477,000	8,243,000	9,324,000	10,571,000	13,350,000	9,254,000	6,634,000	3,313,000	1,193,000	4,894,000	5,481,000	6,864,000	6,170,000	5,160,000
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	64,286,000	74,475,000	71,655,000	69,877,000	67,792,000	65,268,000	63,954,000	62,095,000	59,744,000	54,150,000	51,669,000	48,343,000	45,030,000	43,341,000	39,304,000	40,113,000	41,792,000	44,554,000	42,816,000	40,765,000
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%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,298,000K ÷ ($—K + $64,286,000K)
= 14.46%

The return on total capital for General Motors Company has shown a consistent upward trend over the past four quarters, increasing from 5.51% at the end of March 2022 to 6.37% at the end of June 2023. This indicates that the company has been able to generate a higher return relative to its total capital employed in its operations. The improvement in this ratio suggests that the company's capital utilization and profitability have been on a positive trajectory. However, it's important to monitor this trend in subsequent periods to assess the sustainability of this performance.