General Motors Company (GM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
General Motors Company has consistently maintained a low level of debt in relation to its assets, capital, and equity, as evidenced by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being reported as 0.00 across multiple quarters. This indicates that the company's financial leverage is very conservative, with little reliance on debt to finance its operations.
The financial leverage ratio, which measures the company's overall debt compared to its equity, has shown a decreasing trend over the quarters, dropping from 6.15 in March 2020 to 4.44 in December 2024. This decline suggests that General Motors has been gradually reducing its financial leverage, which is a positive sign for its solvency and financial stability.
Overall, General Motors Company's solvency ratios reflect a strong and stable financial position, with prudent debt management practices and a decreasing reliance on debt financing over the years.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
General Motors Company's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
The interest coverage ratio ranged from a low of 3.13 on December 31, 2023, to a high of 17.76 on June 30, 2023. A ratio below 1 indicates that the company is not generating enough operating income to meet its interest payments, which could raise concerns about its financial health.
Notably, the interest coverage ratio improved significantly in the later part of the period, reaching levels above 10. This indicates that General Motors Company's operating income was more than sufficient to cover its interest expenses during those periods, reflecting a stronger financial position.
Overall, the trend in General Motors Company's interest coverage ratio shows some volatility but generally demonstrates the company's ability to manage its interest payments effectively, with periods of stronger coverage offsetting weaker periods. Investors and analysts may want to continue monitoring this ratio to assess the company's financial stability and debt management strategies.