General Motors Company (GM)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $64,286,000K)
= 0.00
The debt-to-capital ratio measures the proportion of a company's capital that is financed by debt. It is calculated by dividing a company's total debt by the sum of its total debt and total equity. A higher ratio indicates higher financial leverage and greater reliance on debt financing.
Based on the data provided, General Motors Company's debt-to-capital ratio has fluctuated over the past eight quarters, ranging from 0.61 to 0.65. The ratio indicates that, on average, approximately 62% to 65% of the company's capital structure is represented by debt.
A rising trend in the debt-to-capital ratio may imply that the company is increasingly using debt to finance its operations and expansion, which could potentially lead to higher financial risk. Conversely, a decreasing trend could indicate a shift towards equity financing or debt reduction, potentially lowering the company's financial risk.
It would be important to assess the context behind these fluctuations, such as any major debt issuances or repayments, changes in equity levels, or shifts in the company's overall financial strategy. Additionally, it would be insightful to compare the ratio with industry benchmarks and competitor data to gain a broader perspective on General Motors' capital structure and financial risk management.
Peer comparison
Dec 31, 2023