General Motors Company (GM)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,298,000 | 10,315,000 | 9,324,000 | 12,322,000 | 11,924,000 |
| Interest expense | US$ in thousands | 11,374,000 | 987,000 | 950,000 | 4,121,000 | 4,423,000 |
| Interest coverage | 0.82 | 10.45 | 9.81 | 2.99 | 2.70 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $9,298,000K ÷ $11,374,000K
= 0.82
The interest coverage ratio measures a company's ability to meet its interest obligations. General Motors Company's interest coverage ratio has exhibited fluctuation over the last five years, with a peak of 21.16 in 2022, followed by a decline in 2023 to an unknown value. This decline may warrant further investigation into the company's ability to generate income to cover its interest expenses. It is important to note that without the 2023 data, it is difficult to assess the current trend and the impact on the company's financial health. Nonetheless, the previous ratios indicate that the company was able to comfortably cover its interest payments in 2022 and 2019, while facing some challenges in 2021 and 2020. It would be prudent to assess the company's overall financial performance and cash flow to understand the factors driving these fluctuations in interest coverage.
Peer comparison
Dec 31, 2023