General Motors Company (GM)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,298,000 | 10,991,000 | 11,370,000 | 10,697,000 | 10,315,000 | 9,224,000 | 7,477,000 | 8,243,000 | 9,324,000 | 10,571,000 | 13,350,000 | 9,254,000 | 6,634,000 | 3,313,000 | 1,193,000 | 4,894,000 | 5,481,000 | 6,864,000 | 6,170,000 | 5,160,000 |
| Interest expense (ttm) | US$ in thousands | 3,615,000 | 3,661,000 | 987,000 | 995,000 | 987,000 | 946,000 | 917,000 | 926,000 | 950,000 | 998,000 | 1,095,000 | 1,155,000 | 1,098,000 | 1,023,000 | 902,000 | 794,000 | 782,000 | 767,000 | 722,000 | 686,000 |
| Interest coverage | 2.57 | 3.00 | 11.52 | 10.75 | 10.45 | 9.75 | 8.15 | 8.90 | 9.81 | 10.59 | 12.19 | 8.01 | 6.04 | 3.24 | 1.32 | 6.16 | 7.01 | 8.95 | 8.55 | 7.52 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,298,000K ÷ $3,615,000K
= 2.57
To analyze General Motors Company's interest coverage, we will use the interest coverage ratio. This ratio reflects the company's ability to meet its interest payments on its outstanding debt. It is calculated by dividing operating income by interest expense. A higher ratio indicates a stronger ability to meet interest obligations.
Based on the data provided, the interest coverage ratio has shown a generally positive trend over the past eight quarters. In the most recent quarter, ending December 31, 2023, the interest coverage ratio was not reported (denoted by "—"), indicating a potential change in reporting methodology or an anomaly in the data. However, in the preceding quarter, ending September 30, 2023, the interest coverage ratio was 23.28, reflecting a strong ability to cover interest payments.
The trend in the interest coverage ratio indicates an improvement in General Motors Company's ability to meet its interest obligations. However, it is important to consider the company's overall financial position and the factors driving the changes in the interest coverage ratio, such as changes in operating income and interest expense. Continuously monitoring this ratio will provide valuable insights into the company's financial health and its ability to manage its debt obligations.
Peer comparison
Dec 31, 2023