General Motors Company (GM)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,364,000 | 13,064,000 | 12,833,000 | 12,238,000 | 11,313,000 | 13,046,000 | 13,711,000 | 12,823,000 | 12,819,000 | 12,192,000 | 10,603,000 | 12,230,000 | 13,666,000 | 14,898,000 | 17,358,000 | 12,776,000 | 9,061,000 | 5,210,000 | 2,769,000 | 6,469,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 63,072,000 | 70,935,000 | 68,633,000 | 66,598,000 | 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 |
| Return on total capital | 14.85% | 18.42% | 18.70% | 18.38% | 17.60% | 17.52% | 19.13% | 18.35% | 18.91% | 18.68% | 16.58% | 19.70% | 22.87% | 27.51% | 33.59% | 26.43% | 20.12% | 12.02% | 7.05% | 16.13% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,364,000K ÷ ($—K + $63,072,000K)
= 14.85%
General Motors Company has experienced fluctuations in its return on total capital over the past few years, ranging from a low of 7.05% in June 2020 to a high of 33.59% in June 2021. The return on total capital measures the efficiency of the company in generating profits from its total capital employed, including debt and equity.
The return on total capital showed a generally upward trend from March 2020 to June 2021, indicating improvement in the company's ability to generate returns on its investments. However, there was a slight decline in the metric between June 2021 and December 2024, with a notable decrease to 14.85% by the end of 2024.
While the return on total capital fluctuated over the period, it generally remained above the initial levels observed in 2020. This suggests that General Motors Company has been able to effectively utilize its capital to generate returns, albeit with some variability in performance. Further analysis of the company's financial and operational strategies would be needed to understand the factors driving these fluctuations in return on total capital.
Peer comparison
Dec 31, 2024