General Motors Company (GM)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 64,286,000 | 67,792,000 | 59,744,000 | 45,030,000 | 41,792,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $64,286,000K
= 0.00
The debt-to-equity ratio of General Motors Company has fluctuated over the past five years. As of December 31, 2023, the ratio stands at 1.89, exhibiting an increase from the prior year. This suggests that the company's reliance on debt financing in relation to equity has risen. However, compared to the ratio of 2.47 in 2019, there has been a downward trend overall.
The ratio indicates that the company has been using more debt to finance its operations compared to equity, which may raise concerns about financial risk and the ability to meet debt obligations. It is essential to monitor this ratio over time and in relation to industry benchmarks to assess the company's long-term financial stability and risk management.
Peer comparison
Dec 31, 2023