General Motors Company (GM)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,364,000 | 13,064,000 | 12,833,000 | 12,238,000 | 11,313,000 | 13,046,000 | 13,711,000 | 12,823,000 | 12,819,000 | 12,192,000 | 10,603,000 | 12,230,000 | 13,666,000 | 14,898,000 | 17,358,000 | 12,776,000 | 9,061,000 | 5,210,000 | 2,769,000 | 6,469,000 |
| Interest expense (ttm) | US$ in thousands | 846,000 | 853,000 | 3,580,000 | 3,600,000 | 3,615,000 | 3,446,000 | 772,000 | 780,000 | 772,000 | 946,000 | 917,000 | 926,000 | 950,000 | 952,000 | 1,049,000 | 1,109,000 | 1,052,000 | 927,000 | 806,000 | 698,000 |
| Interest coverage | 11.07 | 15.32 | 3.58 | 3.40 | 3.13 | 3.79 | 17.76 | 16.44 | 16.60 | 12.89 | 11.56 | 13.21 | 14.39 | 15.65 | 16.55 | 11.52 | 8.61 | 5.62 | 3.44 | 9.27 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,364,000K ÷ $846,000K
= 11.07
General Motors Company's interest coverage ratio fluctuated over the period from March 31, 2020, to December 31, 2024. Interest coverage measures a company's ability to meet its interest obligations on debt, with a higher ratio indicating stronger financial health.
The trend in General Motors Company's interest coverage ratio shows variability, starting at 9.27 on March 31, 2020, and reaching a peak of 17.76 on June 30, 2023. However, there are also periods with lower coverage ratios, such as September 30, 2020, where it dropped to 5.62, and September 30, 2023, where it fell to 3.79.
It is encouraging to note that the interest coverage ratio has generally remained above 1, indicating that General Motors has consistently generated enough operating income to cover its interest expenses. The ratio saw significant improvement towards the end of the period, rising to 15.32 on September 30, 2024, and 11.07 on December 31, 2024.
Overall, General Motors Company's interest coverage ratio demonstrates fluctuations over the analyzed period, but the company has managed to maintain a satisfactory level of coverage to meet its interest obligations, indicating a degree of financial stability.
Peer comparison
Dec 31, 2024