General Motors Company (GM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 279,761,000 | 273,064,000 | 264,037,000 | 244,718,000 | 235,194,000 |
| Total stockholders’ equity | US$ in thousands | 63,072,000 | 64,286,000 | 67,792,000 | 59,744,000 | 45,030,000 |
| Financial leverage ratio | 4.44 | 4.25 | 3.89 | 4.10 | 5.22 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $279,761,000K ÷ $63,072,000K
= 4.44
The financial leverage ratio of General Motors Company has been showing a trend of declining from 5.22 as of December 31, 2020, to 4.10 as of December 31, 2021, further decreasing to 3.89 as of December 31, 2022. However, there was a slight increase to 4.25 as of December 31, 2023, followed by another increase to 4.44 as of December 31, 2024. This indicates that the company's reliance on debt as a source of financing relative to equity has fluctuated over the years, suggesting changes in the capital structure and financial risk. The recent upward trend in the leverage ratio may warrant further scrutiny to assess its impact on the company's overall financial health and stability.
Peer comparison
Dec 31, 2024