GM (General Motors) Financial Analysis and Financial Ratios
Quality Business Consultant's financial analysis expert, Paul Borosky, MBA., doctoral candidate, and published author, has created proprietary financial models to help analyze GM's financial performance using GM's summarized income statements and balance sheets for the last five years, 2016 to 2020, found in their Annual Reports and GM's 10ks.
Further, our financial model also calculates over 20 popular financial ratios, such as GM's current ratio, return on equity, and debt ratio. This information is the basis of our financial report, "GM Financial Report", where we offer insights into understanding their financial standing through insightful financial analysis.
A Beginner's Guide to GM Financial Analysis - 2021
- Included Easy to download PDF File.
- Included Easy to use format.
- Included Summarized Income Statements and Balance Sheets for the last 5 years..
- Included Popular financial ratios for the last 5 years included... with calculations and formulas!
- Included Expert tips to help with financial statements analysis.
- Included Expert tips to help with financial ratios analysis.
- NOT Included-Identify and discuss financial trends for the company..
- NOT Included-Expert financial analysis done by Paul Borosky, MBA.
- NOT Included- Analyst "Letter Grades" for the company's ratios.
GM Financial Report by Paul Borosky, MBA. - 2019
- Included Easy to download PDF File.
- Included Easy to use format.
- Included Summarized Income Statements and Balance Sheets for the last 5 years..
- Included Popular financial ratios for the last 5 years included... with calculations and formulas!
- Included Expert tips to help with financial statements analysis.
- Included Expert tips to help with financial ratios analysis.
- Included Identify and discuss financial trends for the company.
- Included Expert financial analysis done by Paul Borosky MBA.
- Included Analyst "Letter Grades" for the company's ratios.
GM Financial Report and Financial Analysis
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GM 2021 Beginner's Guide to Financial Analysis
Table of Contents
- Disclaimer 3
- Forward 4
- Income Statement 6
- GM’s Summarized Income Statements 6
- Revenues 7
- Cost of Goods Sold (COGS) 8
- Selling, General, and Administrative Expenses (SG&A 8
- Research and Development (R&D) 9
- Operating Expenses 10
- Earnings Before Interest and Taxes (EBIT 10
- Interest Expense 11
- Earnings Before Taxes (EBT) 12
- Taxes 12
- Net income 12
- Tax Rate 13
- Balance Sheet 14
- GM’s Summarized Balance Sheets 14
- Cash 15
- Short-Term Investments 16
- Accounts Receivables 16
- Inventory 17
- Current Assets 18
- Property, Plant, and Equipment (PP&E) 19
- Total Assets 19
- Accounts Payable 20
- Accrued Expenses 21
- Short-Term Debt 22
- Total Current Liabilities 23
- Long Term Debt (LT Debt) 24
- Total Liabilities 25
- Common Stock and Additional Paid-in Capital 26
- Treasury 26
- Retained Earnings 27
- Total Equity 28
- Financial Ratios 29
- GM’s Liquidity Ratios 30
- Current Ratio 30
- Quick Ratio 31
- Cash Ratio 32
- GM’s Asset Ratios 34
- Total Asset Turnover 35
- Fixed Asset Turnover 36
- Days Sales Outstanding 36
- Inventory Turnover 37
- Accounts Receivable Turnover 38
- Accounts Payable Turnover 39
- Other Asset Ratio Calculations 40
- Working Capital Turnover 40
- Average Days in Inventory 40
- Average Days Payable 40
- GM’s Profitability Ratios 42
- Return on Assets (ROA) 42
- Return on Equity (ROE) 43
- Net Profit Margin 44
- Gross Profit Margin 45
- Operating Profit Margin 45
- GM’s Debt Ratios 47
- Debt Ratio 47
- Debt to Equity Ratio 48
- Times Interest Earned 49
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GM 2019 Financial Report
Table of Contents
- Disclaimer 3
- Acknowledgments 4
- Forward 5
- About the Author 7
- Company Summary 8
- Financial Statement Introduction 11
- Income Statement 12
- General Motors’s Income Statement – Summary Analysis 13
- Income Statement Discussion 15
- Balance Sheet 23
- Balance Sheet – Summary Analysis 24
- Balance Sheet Discussion 26
- Financial Ratios 41
- Liquidity Ratios 42
- Liquidity Ratios - Summary Analysis 42
- Liquidity Ratios Discussion 43
- Current Ratio 43
- Quick Ratio 44
- Cash Ratio 45
- Other Liquidity Ratios 46
- Net Operating Working Capital 46
- Asset Ratios 47
- Asset Utilization Ratios - Summary Analysis 48
- Asset Utilization Ratios Discussion 49
- Total Asset Turnover 49
- Fixed Asset Turnover 50
- Days Sales Outstanding 51
- Inventory Turnover 52
- Accounts Receivable Turnover 52
- Accounts Payable Turnover 53
- Other Asset Ratio Calculations 54
- Working Capital Turnover 54
- Average Days in Inventory 54
- Average Days Payable 55
- Profitability Ratios 56
- Profitability Ratios - Summary Analysis 57
- Profitability Ratios Discussion 58
- Return on Assets (ROA) 58
- Return on Equity (ROE) 59
- Profit Margin 59
- Gross Profit Margin 60
- Operating Profit Margin 61
- Basic Earnings Power 62
- ROCE 62
- Capital Employed 62
- Debt Ratios 63
- General Motors’s Debt Ratios - Summary Analysis 63
- Debt Ratios Discussion 64
- Long-Term Debt Ratio 64
- Debt to Equity Ratio 65
- Times Interest Earned 65
- WACC 67
- Book Value of WACC 67
- Free Cash Flow (FCF) 69
- Free Cash Flows – 2015 - 2019 69
- Free Cash Flows – 5 Year Projections 70
- Income Statement – Projections for 5 years 71
- Income Statement – 5 Year Projections 71
- Balance Sheet – Projections for 5 years 72
- Balance Sheet – 5 Year Projections 72
- Company Valuation and Intrinsic Stock Price 74
- Appendix 1: Summarized Income Statement 75
- Appendix 2: Income Statement – Percent of Sales 76
- Appendix 3: Income Statement – Year over Year Growth 77
- Appendix 4: Summarized Balance Sheet 78
- Appendix 5: Balance Sheet as Percent of Total Assets 80
- Appendix 6: Summarized Financial Ratios 81
GM's Financial Report by Paul Borosky, MBA.
Hey All,
Thanks for considering my General Motors (GM) Financial Report. In this report, you will be able to find preliminary information about Amazon's current financial performance as well as some historical track records and trends. Also, in this report, written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, you will find:
- Summarized income statement for the last 5 years.
- Summarized balance sheet for the last 5 years.
- Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends and other happenings.
- Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
Sincerely,
Paul, MBA.
Sample Report
GM Income Statement Analysis Sample
In this section of the financial report, I walk you through a broad definition of what an income statement is and why it is essential. From this, I then discuss and define important income statement line items, such as revenues, gross profits, etc., in detail. Finally, I offer a summary analysis of the company's important income statement line item trends. For example,...
GM Cost of Goods Sold.
GM's cost of goods sold in 2015 was approximately $112.9 billion. As compared to revenues, their cost of goods sold was 83.3%. In the next three years, the organization's cost of goods sold would grow to $120.6 billion in 2018. As compared to revenues, the company was able to lower the cost of goods to 82.1%. Unfortunately, the organization's revenues declined in 2019, and with it, the company's cost of goods sold, which resulted in the line item at $110.6 billion or 80.6% of revenues.
General Motors (GM) 2021 Summary Income Statement |
|||||
| Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
| Revenues |
127,004 |
122,485 | 137,237 | 147,049 |
145,588 |
| COGS |
100,544 |
97,539 | 110,651 | 120,656 |
116,229 |
| Gross Profit |
26,460 |
24,946 | 26,586 | 26,393 |
29,359 |
| SG&A |
8,554 |
7,038 | 8,491 | 9,650 |
9,570 |
| Depreciation |
12,052 |
12,815 | 14,118 | 13,669 |
12,261 |
| R & D | - | - | - | - | - |
| Other |
8,582 |
11,274 | 12,614 | 12,298 |
11,128 |
| Total Operating Expenses |
29,188 |
31,127 | 35,223 | 35,617 |
32,959 |
| EBIT |
9,324 |
6,634 | 5,481 | 4,445 |
10,016 |
| Other Income | - | - | - | - | - |
| Interest Expense |
950 |
1,098 | 782 | 655 |
575 |
| EBT |
12,716 |
8,095 | 7,436 | 8,549 |
11,863 |
| Taxes |
2,771 |
1,774 | 769 | 474 |
11,533 |
| Net Income |
9,945 |
6,427 | 6,732 | 8,014 |
(3,864) |
GM Balance Sheet Analysis Sample
In this section of the financial report, I walk you through a broad definition of what a balance sheet is and why it is important. From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc., in detail. Finally, I offer a summary analysis of the company's important balance sheet line item trends. For example,...
GM Property, Plant, and Equipment
GM's property, plant, and equipment ended 2015 at $31.2 billion. In the next four years, the organization would substantially increase its property, plant, and equipment to $38.7 billion. This is an average growth rate of approximately 5.6%. When an organization is increasing its property, plant, and equipment, this means that the firm is anticipating moderates long-term sales growth. From an investor perspective, this is excellent. However, in the event of a recession, the company may have excess property, plant, and equipment. This may lead to a reduced return on assets and overall inefficiencies within the organization.
General Motors (GM) 2021 Summary Balance Sheet |
|||||
| Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
| Cash |
20,067 |
19,992 | 19,069 | 20,844 |
15,512 |
| Short Term Investment |
8,609 |
9,046 | 4,174 | 5,966 |
8,313 |
| Account Receivable |
7,394 |
34,244 | 33,398 | 33,399 |
28,685 |
| Inventory |
12,988 |
10,235 | 10,398 | 9,816 |
10,663 |
| Other | - | - | - | - | - |
| Current Assets |
82,103 |
80,924 | 74,992 | 75,293 |
68,744 |
| Net PPE |
41,115 |
37,632 | 38,750 | 38,758 |
36,253 |
| Goodwill |
5,087 |
5,230 | 5,337 | 5,579 |
5,849 |
| Other | - | - | - | - | - |
| Total Assets |
244,718 |
235,194 | 228,037 | 227,339 |
212,482 |
| Accounts Payable |
20,391 |
19,928 | 21,018 | 22,297 |
23,929 |
| Accrued Expense |
20,297 |
23,069 | 26,487 | 28,049 |
25,996 |
| Accrued Taxes | - | - | - | - | - |
| Notes Payable | - | - | - | - | - |
| LT Debt - Current |
33,720 |
36,913 | 37,400 | 31,891 |
26,965 |
| Other | - | - | - | - | |
| Total Current Liabilities |
74,408 |
79,910 | 84,905 | 82,237 |
76,890 |
| LT Debt |
75,659 |
72,981 | 65,924 | 73,060 |
67,254 |
| Other | - | - | - | - | - |
| Total Liabilities |
178,903 |
185,517 | 182,080 | 184,562 |
176,282 |
| Common Stock |
27,076 |
26,556 | 26,074 | 25,563 |
25,371 |
| Treasury | - | - | - | - | - |
| Retained Earnings |
41,937 |
31,962 | 26,860 | 25,563 |
17,627 |
| Other | - | - | - | - | - |
| Total Equity |
65,815 |
49,677 | 45,957 | 42,777 |
36,200 |
| Total Equity & Liability |
244,718 |
235,194 | 228,037 | 227,339 |
212,482 |
GM Financial Ratios Sample
In this section of the financial report, I walk you through definitions of various popular financial ratios, how to calculate the ratios, formulas used, etc. Also, for some popular financial ratios, I provide brief explanations of what the ratios mean as it is related to the company.
GM Quick Ratio
GM's quick ratio ended 2015 at .9. In the next two years, the organization's quick ratio would fall to .76. In 2018, the quick ratio would increase to .8 only to fall again to .76 in 2019. The relatively high quick ratio shows that the company is more than solvents for the short term. Even subtracting inventory, the company still has enough assets to pay three-quarters of its current liabilities.
GM Fixed Asset Turnover Ratio
In 2015, GM's fixed asset turnover was 4.35. In the next year, ending 2016, their fixed asset turnover would slightly increase to 4.58. However, in the next three years, the organization's fixed asset turnover would fall, ending 2019 at 3.54. This indicates that the organization has too many fixed assets. Either the organization needs to increase production to further optimize its fixed asset usage. Or, the company needs to sell off underutilized fixed assets. A surprising factor is that the organization has been continually increasing its fixed assets over the last several years. This may mean that the firm expects long-term growth in the foreseeable future. If this expectation is correct, then investors should anticipate the company's fixed asset turnover to increase in the next 2 to 3 years.
GM 2021 Liquidity Ratios |
|||||
| Ratios | 2021 | 2020 | |||
| Current Ratio | 1.10 | 1.01 | |||
| Cash Ratio | 0.39 | 0.36 | |||
| Quick Ratio | 0.93 | 0.88 | |||
| Net Working Capital | 7,695 | 1,014 | |||
GM 2021 Asset Utilization |
|||||
| Ratios | 2021 | 2020 | |||
| Total Asset Turnover | 0.52 | 0.52 | |||
| Fixed Asset Turnover | 3.09 | 3.25 | |||
| Days Sales Outstanding | 59.83 | 100.79 | |||
| Inventory Turnover (Using Sales) | 10.94 | 11.87 | |||
| Inventory Turnover (Using COGS) | 8.66 | 9.45 | |||
| Accounts Receivable Turnover | 6.10 | 3.62 | |||
| Working Capital Turnover | 16.50 | 120.79 | |||
| AP Turnover | 5.12 | 4.76 | |||
| Average Days Inventory | 42.15 | 38.61 | |||
| Average Days Payable | 71.23 | 76.74 | |||
GM 2021 Profitability Ratios |
|||||
| Ratios | 2021 | 2020 | |||
| Return on Assets | 4.06% | 2.73% | |||
| Return on Equity | 15.11% | 12.94% | |||
| Net Profit Margin | 7.83% | 5.25% | |||
| Gross Profit Margin | 20.83% | 20.37% | |||
| Operating Profit Margin | 7.34% | 5.42% | |||
| Basic Earning Power | 3.81% | 2.82% | |||
| ROCE | 5.47% | 4.27% | |||
| Capital Employed | 170,310 | 155,284 | |||
| ROIC | 4.16% | 3.25% | |||
GM 2021 Debt Ratios |
|||||
| Ratios | 2021 | 2020 | |||
| Debt Ratio | 44.70% | 46.72% | |||
| Debt/Equity | 166.19% | 221.22% | |||
| Times Interest Earned | 9.81 | 6.04 | |||