General Motors Company (GM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 228,037,000 | 231,529,000 | 233,737,000 | 233,132,000 |
| 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 |
| Financial leverage ratio | 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 | 5.46 | 5.20 | 5.46 | 5.72 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $273,064,000K ÷ $64,286,000K
= 4.25
General Motors Company's financial leverage ratio has shown fluctuations over the past eight quarters. The ratio has ranged from a low of 3.78 to a high of 4.25. A higher financial leverage ratio indicates higher financial risk and implies that the company is using more debt to finance its assets. This can lead to increased interest payments and higher sensitivity to interest rate changes. On the other hand, a lower ratio reflects lower financial risk, but it can also suggest that the company is not utilizing leverage to maximize its returns.
The increase in the financial leverage ratio from 3.78 in September 2023 to 4.25 in December 2023 may indicate a significant rise in the company's reliance on debt to fund its operations or investments. Investors and stakeholders should closely monitor the trend in this ratio to assess the company's risk profile and financial stability. Additionally, it would be important to analyze the reasons behind the fluctuations in the financial leverage ratio to understand the company's financing decisions and their potential impact on future performance and solvency.
Peer comparison
Dec 31, 2023