General Motors Company (GM)

Financial leverage ratio

		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
Total assets	US$ in thousands	279,761,000	289,289,000	282,956,000	276,591,000	273,064,000	281,705,000	275,833,000	267,004,000	264,037,000	260,529,000	253,517,000	251,492,000	244,718,000	238,557,000	241,803,000	238,411,000	235,194,000	239,671,000	237,535,000	246,624,000
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
Financial leverage ratio		4.44	4.08	4.12	4.15	4.25	3.78	3.85	3.82	3.89	3.99	3.96	4.05	4.10	4.41	4.68	4.93	5.22	5.53	6.04	6.15

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 decreasing steadily over the past few years, indicating a positive trend in the company's leverage position. The ratio decreased from 6.15 in March 2020 to 4.44 in December 2024. This reduction suggests that the company has been effectively managing its debt levels relative to its equity, which can be seen as a favorable sign for investors and creditors. A lower financial leverage ratio generally indicates decreased financial risk and improved solvency. Nevertheless, it is important to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and stability.