際際滷

際際滷Share a Scribd company logo
GM'S BALANCE SHEET
3 LESSONS FOR INVESTORS
GENERAL MOTORS' BALANCE SHEET
CASTS LIGHT ON THREE OF THE
AUTOMAKER'S MOST IMPORTANT
TRAITS.
SIZE | LIQUIDITY | SOLVENCY
ASSETS & EQUITY
ARE THERE ENOUGH CURRENT
ASSETS (CASH & EQUIVALENTS) TO
COVER CURRENT LIABILITIES?
DOES EQUITY EXCEED DEBT?
SIZE | LIQUIDITY | SOLVENCY
THESE TRAITS GIVE INVESTORS A
SENSE OF GENERAL MOTORS'
GROWTH POTENTIAL, AS WELL AS OF
THE VULNERABILITY OF ITS
BUSINESS MODEL.
BEFORE DIGGING INTO THESE
TRAITS, LETS BRIEFLY REVIEW THE
BALANCE SHEET ITSELF.
EQUITY
LIABILITIES
ASSETS
THE BALANCE SHEET
1. THE BALANCE SHEET
REVEALS A COMPANYS
ASSETS, LIABILITIES,
AND OWNERS EQUITY
ON THE FINAL DAY OF A
FISCAL QUARTER OR
YEAR.
2. THIS IS WHY ITS
OFTEN REFERRED TO AS
A SNAPSHOT OF A
COMPANYS FINANCIAL
CONDITION.
3. THE ACCOUNTING
EQUATION HOLDS THAT
ASSETS MUST ALWAYS
EQUAL LIABILITIES PLUS
OWNERS EQUITY.
1. SIZE
YOU PROBABLY WON'T BE
SURPRISED TO HEAR THAT GENERAL
MOTORS IS ONE OF THE BIGGEST
COMPANIES IN AMERICA.
$55 billion
$189 billion
$35 billion
$152 billion
Market
Capitalization
Total
Assets
Shareholders'
Equity
Revenue
(ttm)
4 WAYS TO MEASURE GM'S SIZE
$189 billion
FOUND ON GENERAL MOTORS' BALANCE SHEET
42ND29TH GM IS THE 42ND BIGGEST
COMPANY ON THE S&P 500
BASED ON EQUITY.
IT'S THE 29TH LARGEST WHEN
MEASURED BY ASSETS.
THANKS TO GENERAL MOTORS'
ALREADY CONSIDERABLE SIZE, IT
ISN'T LIKELY TO GROW AS FAST AS,
SAY, A NEWLY LISTED GROWTH
STOCK.
2. LIQUIDITY
THE CURRENT RATIO IS A COMMON WAY
TO MEASURE LIQUIDITY.
ITS CALCULATED BY DIVIDING A
COMPANYS CURRENT ASSETS BY ITS
CURRENT LIABILITIES.
$82 BILLION
$73 BILLION
= 1.13
GM'S CURRENT
ASSETS
GM'S CURRENT
LIABILITIES
GM'S CURRENT RATIO
HOW DOES GENERAL MOTORS'
CURRENT RATIO COMPARE TO THAT
OF OTHER LARGE-CAP STOCKS?
-
1
2
3
4
5
6
 100 BIGGEST S&P 500 COMPANIES 
CURRENTRATIO
54% OF S&P 500 COMPANIES
HAVE CURRENT RATIOS
BETWEEN 0.75 AND 2.0
THE CURRENT RATIOS OF THE 100
BIGGEST S&P 500 COMPANIES
BY THIS MEASURE, THEN, GM'S
LIQUIDITY IS WITHIN THE USUAL
RANGE, FALLING BETWEEN 0.75 AND
2.0.
3. SOLVENCY
LAST BUT NOT LEAST IS SOLVENCY,
WHICH IS MEASURED BY THE DEBT-TO-
EQUITY RATIO.
THIS IS CALCULATED BY DIVIDING A
COMPANYS DEBT BY ITS EQUITY.
$57 BILLION
$35 BILLION
= 1.66
GM'S DEBT
GM'S EQUITY
GM'S DEBT-TO-
EQUITY RATIO
THERES NO HARD-AND-FAST RULE
WHEN IT COMES TO THE DEBT-TO-
EQUITY RATIO, THOUGH A SMALLER
RATIO (LESS THAN 1) IMPLIES THAT A
COMPANY IS BETTER POSITIONED TO
SURVIVE AN INTERUPTION TO ITS
REVENUE.
HOW DOES GENERAL MOTORS' DEBT-
TO-EQUITY RATIO COMPARE?
2.98
2.17
0.56 0.49
0.28 0.20
1.66
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
IBM MCD COST PG JNJ XOM GM
WHILE GM'S DEBT-TO-EQUITY RATIO
EXCEEDS 1.0, IT'S IN GOOD
COMPANY, AS 185 OTHER S&P 500
COMPANIES ARE IN THE SAME BOAT.
Looking for more information like this?
The Motley Fools mission is to help the world invest better. Weve done
this over the past 20 years by thinking long term and outside the box 
even if that means turning Wall Street on its head. To receive a special free
report about what The Motley Fool thinks might be the next big industry
to come out of Silicon Valley, just click here now.
Ad

Recommended

Schlumberger's Balance Sheet
Schlumberger's Balance Sheet
OneMarlandRoad
Wal-Mart's Balance Sheet
Wal-Mart's Balance Sheet
OneMarlandRoad
Costco's Balance Sheet
Costco's Balance Sheet
OneMarlandRoad
Disney's Balance Sheet
Disney's Balance Sheet
OneMarlandRoad
Johnson & Johnson's Balance Sheet
Johnson & Johnson's Balance Sheet
OneMarlandRoad
Apple's Balance Sheet
Apple's Balance Sheet
OneMarlandRoad
A guide to choosing the right insurance provider
A guide to choosing the right insurance provider
Kelly Shultis
Enron(smhumza12544)
Enron(smhumza12544)
Syed Muhammad Humza Hussain
3M: An Owner's Manual for Investors
3M: An Owner's Manual for Investors
OneMarlandRoad
Qualcomm: An Owner's Manual for Investors
Qualcomm: An Owner's Manual for Investors
OneMarlandRoad
UnitedHealth Group: An Owner's Manual for Investors
UnitedHealth Group: An Owner's Manual for Investors
OneMarlandRoad
Lockheed Martin: An Owner's Manual for Investors
Lockheed Martin: An Owner's Manual for Investors
OneMarlandRoad
PepsiCo: An Owner's Manual for Investors
PepsiCo: An Owner's Manual for Investors
OneMarlandRoad
Chevron: An Owner's Manual for Investors
Chevron: An Owner's Manual for Investors
OneMarlandRoad
Oracle's Balance Sheet
Oracle's Balance Sheet
OneMarlandRoad
Microsoft's Balance Sheet
Microsoft's Balance Sheet
OneMarlandRoad
ExxonMobil: An Owner's Manual
ExxonMobil: An Owner's Manual
OneMarlandRoad
Wells Fargo: An Owner's Manual
Wells Fargo: An Owner's Manual
OneMarlandRoad
Coca-Cola's Balance Sheet
Coca-Cola's Balance Sheet
OneMarlandRoad
Johnson & Johnson Stock: An Owner's Manual
Johnson & Johnson Stock: An Owner's Manual
OneMarlandRoad
Bank of America Stock: An Owner's Manual
Bank of America Stock: An Owner's Manual
OneMarlandRoad
Apple Stock: A User's Manual
Apple Stock: A User's Manual
OneMarlandRoad
United Technologies' Billions
United Technologies' Billions
OneMarlandRoad
Philip Morris' Billions
Philip Morris' Billions
OneMarlandRoad
Cisco's Billions
Cisco's Billions
OneMarlandRoad
Visa's Billions
Visa's Billions
OneMarlandRoad
IBM's Billions
IBM's Billions
OneMarlandRoad
Aflac: An Owners Manual for Investors
Aflac: An Owners Manual for Investors
OneMarlandRoad
Marketing Assignment presentation of good marketing techniques how to impleme...
Marketing Assignment presentation of good marketing techniques how to impleme...
Priya Raj
IT Companies in Magarpatta: A Thriving Hub of Technology and Innovation
IT Companies in Magarpatta: A Thriving Hub of Technology and Innovation
prernarathi90

More Related Content

More from OneMarlandRoad (20)

3M: An Owner's Manual for Investors
3M: An Owner's Manual for Investors
OneMarlandRoad
Qualcomm: An Owner's Manual for Investors
Qualcomm: An Owner's Manual for Investors
OneMarlandRoad
UnitedHealth Group: An Owner's Manual for Investors
UnitedHealth Group: An Owner's Manual for Investors
OneMarlandRoad
Lockheed Martin: An Owner's Manual for Investors
Lockheed Martin: An Owner's Manual for Investors
OneMarlandRoad
PepsiCo: An Owner's Manual for Investors
PepsiCo: An Owner's Manual for Investors
OneMarlandRoad
Chevron: An Owner's Manual for Investors
Chevron: An Owner's Manual for Investors
OneMarlandRoad
Oracle's Balance Sheet
Oracle's Balance Sheet
OneMarlandRoad
Microsoft's Balance Sheet
Microsoft's Balance Sheet
OneMarlandRoad
ExxonMobil: An Owner's Manual
ExxonMobil: An Owner's Manual
OneMarlandRoad
Wells Fargo: An Owner's Manual
Wells Fargo: An Owner's Manual
OneMarlandRoad
Coca-Cola's Balance Sheet
Coca-Cola's Balance Sheet
OneMarlandRoad
Johnson & Johnson Stock: An Owner's Manual
Johnson & Johnson Stock: An Owner's Manual
OneMarlandRoad
Bank of America Stock: An Owner's Manual
Bank of America Stock: An Owner's Manual
OneMarlandRoad
Apple Stock: A User's Manual
Apple Stock: A User's Manual
OneMarlandRoad
United Technologies' Billions
United Technologies' Billions
OneMarlandRoad
Philip Morris' Billions
Philip Morris' Billions
OneMarlandRoad
Cisco's Billions
Cisco's Billions
OneMarlandRoad
Visa's Billions
Visa's Billions
OneMarlandRoad
IBM's Billions
IBM's Billions
OneMarlandRoad
Aflac: An Owners Manual for Investors
Aflac: An Owners Manual for Investors
OneMarlandRoad
3M: An Owner's Manual for Investors
3M: An Owner's Manual for Investors
OneMarlandRoad
Qualcomm: An Owner's Manual for Investors
Qualcomm: An Owner's Manual for Investors
OneMarlandRoad
UnitedHealth Group: An Owner's Manual for Investors
UnitedHealth Group: An Owner's Manual for Investors
OneMarlandRoad
Lockheed Martin: An Owner's Manual for Investors
Lockheed Martin: An Owner's Manual for Investors
OneMarlandRoad
PepsiCo: An Owner's Manual for Investors
PepsiCo: An Owner's Manual for Investors
OneMarlandRoad
Chevron: An Owner's Manual for Investors
Chevron: An Owner's Manual for Investors
OneMarlandRoad
Oracle's Balance Sheet
Oracle's Balance Sheet
OneMarlandRoad
Microsoft's Balance Sheet
Microsoft's Balance Sheet
OneMarlandRoad
ExxonMobil: An Owner's Manual
ExxonMobil: An Owner's Manual
OneMarlandRoad
Wells Fargo: An Owner's Manual
Wells Fargo: An Owner's Manual
OneMarlandRoad
Coca-Cola's Balance Sheet
Coca-Cola's Balance Sheet
OneMarlandRoad
Johnson & Johnson Stock: An Owner's Manual
Johnson & Johnson Stock: An Owner's Manual
OneMarlandRoad
Bank of America Stock: An Owner's Manual
Bank of America Stock: An Owner's Manual
OneMarlandRoad
Apple Stock: A User's Manual
Apple Stock: A User's Manual
OneMarlandRoad
United Technologies' Billions
United Technologies' Billions
OneMarlandRoad
Philip Morris' Billions
Philip Morris' Billions
OneMarlandRoad
Aflac: An Owners Manual for Investors
Aflac: An Owners Manual for Investors
OneMarlandRoad

Recently uploaded (20)

Marketing Assignment presentation of good marketing techniques how to impleme...
Marketing Assignment presentation of good marketing techniques how to impleme...
Priya Raj
IT Companies in Magarpatta: A Thriving Hub of Technology and Innovation
IT Companies in Magarpatta: A Thriving Hub of Technology and Innovation
prernarathi90
Noah Loul Shares 5 Key Impacts of AI Agents on the Sales Industry
Noah Loul Shares 5 Key Impacts of AI Agents on the Sales Industry
Noah Loul
Enhancing Customer Engagement in Direct Selling Through AI Segmentation
Enhancing Customer Engagement in Direct Selling Through AI Segmentation
Epixel MLM Software
Electronic Shelf Labels & Digital Price Tags in Delhi | Foodcare
Electronic Shelf Labels & Digital Price Tags in Delhi | Foodcare
Foodcare llp
SF Welly User Group_Xero_Building Better Agents.pdf
SF Welly User Group_Xero_Building Better Agents.pdf
Raksha Meanger
Stone Hill Ready Mix Concrete Bagalur
Stone Hill Ready Mix Concrete Bagalur
stonehillrealtyblr
Paul Turovsky - A Key Contributor
Paul Turovsky - A Key Contributor
Paul Turovsky
Oleksandr Osypenko: 丕仗舒于仍仆仆 仂弍磪仂仄 (Scope) (UA)
Oleksandr Osypenko: 丕仗舒于仍仆仆 仂弍磪仂仄 (Scope) (UA)
Lviv Startup Club
How Effective Leadership Drives Success and Accelerates Business Growth by De...
How Effective Leadership Drives Success and Accelerates Business Growth by De...
Devin Doyle
Tesia Dobrydnia - A Leader In Her Industry
Tesia Dobrydnia - A Leader In Her Industry
Tesia Dobrydnia
S4F02 Col11 Management Accounting in SAP S/4HANA for SAP ERP CO Professionals
S4F02 Col11 Management Accounting in SAP S/4HANA for SAP ERP CO Professionals
Libreria ERP
AX to Dynamics 365 Finance and Operations in USA.pdf
AX to Dynamics 365 Finance and Operations in USA.pdf
Trident information system
Agentic AI vs Generative AI Key Differences and Use Cases.pdf
Agentic AI vs Generative AI Key Differences and Use Cases.pdf
SoluLab1231
QuickBooks Keeps Freezing: Causes & Solutions.pptx
QuickBooks Keeps Freezing: Causes & Solutions.pptx
robastwilliams
BMGI India Addressing Strategic, Innovative, and Operational Problems at Core...
BMGI India Addressing Strategic, Innovative, and Operational Problems at Core...
Naresh Raisinghani
Rushi Manche | Blockchain Tech Company Co-Founder
Rushi Manche | Blockchain Tech Company Co-Founder
Rushi Manche
ERP Modernization in 2025: A Practical Guide for CIOs
ERP Modernization in 2025: A Practical Guide for CIOs
Praxis Info Solutions
Ihor Pavlenko: 丕仗舒于仍仆仆 亳亰亳从舒仄亳 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Ihor Pavlenko: 丕仗舒于仍仆仆 亳亰亳从舒仄亳 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Lviv Startup Club
Improving Sales Forecasting in Volatile B2B Capital Equipment Markets - Dave ...
Improving Sales Forecasting in Volatile B2B Capital Equipment Markets - Dave ...
Dave Litwiller
Marketing Assignment presentation of good marketing techniques how to impleme...
Marketing Assignment presentation of good marketing techniques how to impleme...
Priya Raj
IT Companies in Magarpatta: A Thriving Hub of Technology and Innovation
IT Companies in Magarpatta: A Thriving Hub of Technology and Innovation
prernarathi90
Noah Loul Shares 5 Key Impacts of AI Agents on the Sales Industry
Noah Loul Shares 5 Key Impacts of AI Agents on the Sales Industry
Noah Loul
Enhancing Customer Engagement in Direct Selling Through AI Segmentation
Enhancing Customer Engagement in Direct Selling Through AI Segmentation
Epixel MLM Software
Electronic Shelf Labels & Digital Price Tags in Delhi | Foodcare
Electronic Shelf Labels & Digital Price Tags in Delhi | Foodcare
Foodcare llp
SF Welly User Group_Xero_Building Better Agents.pdf
SF Welly User Group_Xero_Building Better Agents.pdf
Raksha Meanger
Stone Hill Ready Mix Concrete Bagalur
Stone Hill Ready Mix Concrete Bagalur
stonehillrealtyblr
Paul Turovsky - A Key Contributor
Paul Turovsky - A Key Contributor
Paul Turovsky
Oleksandr Osypenko: 丕仗舒于仍仆仆 仂弍磪仂仄 (Scope) (UA)
Oleksandr Osypenko: 丕仗舒于仍仆仆 仂弍磪仂仄 (Scope) (UA)
Lviv Startup Club
How Effective Leadership Drives Success and Accelerates Business Growth by De...
How Effective Leadership Drives Success and Accelerates Business Growth by De...
Devin Doyle
Tesia Dobrydnia - A Leader In Her Industry
Tesia Dobrydnia - A Leader In Her Industry
Tesia Dobrydnia
S4F02 Col11 Management Accounting in SAP S/4HANA for SAP ERP CO Professionals
S4F02 Col11 Management Accounting in SAP S/4HANA for SAP ERP CO Professionals
Libreria ERP
AX to Dynamics 365 Finance and Operations in USA.pdf
AX to Dynamics 365 Finance and Operations in USA.pdf
Trident information system
Agentic AI vs Generative AI Key Differences and Use Cases.pdf
Agentic AI vs Generative AI Key Differences and Use Cases.pdf
SoluLab1231
QuickBooks Keeps Freezing: Causes & Solutions.pptx
QuickBooks Keeps Freezing: Causes & Solutions.pptx
robastwilliams
BMGI India Addressing Strategic, Innovative, and Operational Problems at Core...
BMGI India Addressing Strategic, Innovative, and Operational Problems at Core...
Naresh Raisinghani
Rushi Manche | Blockchain Tech Company Co-Founder
Rushi Manche | Blockchain Tech Company Co-Founder
Rushi Manche
ERP Modernization in 2025: A Practical Guide for CIOs
ERP Modernization in 2025: A Practical Guide for CIOs
Praxis Info Solutions
Ihor Pavlenko: 丕仗舒于仍仆仆 亳亰亳从舒仄亳 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Ihor Pavlenko: 丕仗舒于仍仆仆 亳亰亳从舒仄亳 亰舒 亟仂仗仂仄仂亞仂 AI (UA)
Lviv Startup Club
Improving Sales Forecasting in Volatile B2B Capital Equipment Markets - Dave ...
Improving Sales Forecasting in Volatile B2B Capital Equipment Markets - Dave ...
Dave Litwiller
Ad

General Motor's Balance Sheet

  • 1. GM'S BALANCE SHEET 3 LESSONS FOR INVESTORS
  • 2. GENERAL MOTORS' BALANCE SHEET CASTS LIGHT ON THREE OF THE AUTOMAKER'S MOST IMPORTANT TRAITS.
  • 3. SIZE | LIQUIDITY | SOLVENCY
  • 4. ASSETS & EQUITY ARE THERE ENOUGH CURRENT ASSETS (CASH & EQUIVALENTS) TO COVER CURRENT LIABILITIES? DOES EQUITY EXCEED DEBT? SIZE | LIQUIDITY | SOLVENCY
  • 5. THESE TRAITS GIVE INVESTORS A SENSE OF GENERAL MOTORS' GROWTH POTENTIAL, AS WELL AS OF THE VULNERABILITY OF ITS BUSINESS MODEL.
  • 6. BEFORE DIGGING INTO THESE TRAITS, LETS BRIEFLY REVIEW THE BALANCE SHEET ITSELF.
  • 7. EQUITY LIABILITIES ASSETS THE BALANCE SHEET 1. THE BALANCE SHEET REVEALS A COMPANYS ASSETS, LIABILITIES, AND OWNERS EQUITY ON THE FINAL DAY OF A FISCAL QUARTER OR YEAR. 2. THIS IS WHY ITS OFTEN REFERRED TO AS A SNAPSHOT OF A COMPANYS FINANCIAL CONDITION. 3. THE ACCOUNTING EQUATION HOLDS THAT ASSETS MUST ALWAYS EQUAL LIABILITIES PLUS OWNERS EQUITY.
  • 9. YOU PROBABLY WON'T BE SURPRISED TO HEAR THAT GENERAL MOTORS IS ONE OF THE BIGGEST COMPANIES IN AMERICA.
  • 10. $55 billion $189 billion $35 billion $152 billion Market Capitalization Total Assets Shareholders' Equity Revenue (ttm) 4 WAYS TO MEASURE GM'S SIZE $189 billion FOUND ON GENERAL MOTORS' BALANCE SHEET
  • 11. 42ND29TH GM IS THE 42ND BIGGEST COMPANY ON THE S&P 500 BASED ON EQUITY. IT'S THE 29TH LARGEST WHEN MEASURED BY ASSETS.
  • 12. THANKS TO GENERAL MOTORS' ALREADY CONSIDERABLE SIZE, IT ISN'T LIKELY TO GROW AS FAST AS, SAY, A NEWLY LISTED GROWTH STOCK.
  • 14. THE CURRENT RATIO IS A COMMON WAY TO MEASURE LIQUIDITY.
  • 15. ITS CALCULATED BY DIVIDING A COMPANYS CURRENT ASSETS BY ITS CURRENT LIABILITIES.
  • 16. $82 BILLION $73 BILLION = 1.13 GM'S CURRENT ASSETS GM'S CURRENT LIABILITIES GM'S CURRENT RATIO
  • 17. HOW DOES GENERAL MOTORS' CURRENT RATIO COMPARE TO THAT OF OTHER LARGE-CAP STOCKS?
  • 18. - 1 2 3 4 5 6 100 BIGGEST S&P 500 COMPANIES CURRENTRATIO 54% OF S&P 500 COMPANIES HAVE CURRENT RATIOS BETWEEN 0.75 AND 2.0 THE CURRENT RATIOS OF THE 100 BIGGEST S&P 500 COMPANIES
  • 19. BY THIS MEASURE, THEN, GM'S LIQUIDITY IS WITHIN THE USUAL RANGE, FALLING BETWEEN 0.75 AND 2.0.
  • 21. LAST BUT NOT LEAST IS SOLVENCY, WHICH IS MEASURED BY THE DEBT-TO- EQUITY RATIO.
  • 22. THIS IS CALCULATED BY DIVIDING A COMPANYS DEBT BY ITS EQUITY.
  • 23. $57 BILLION $35 BILLION = 1.66 GM'S DEBT GM'S EQUITY GM'S DEBT-TO- EQUITY RATIO
  • 24. THERES NO HARD-AND-FAST RULE WHEN IT COMES TO THE DEBT-TO- EQUITY RATIO, THOUGH A SMALLER RATIO (LESS THAN 1) IMPLIES THAT A COMPANY IS BETTER POSITIONED TO SURVIVE AN INTERUPTION TO ITS REVENUE.
  • 25. HOW DOES GENERAL MOTORS' DEBT- TO-EQUITY RATIO COMPARE? 2.98 2.17 0.56 0.49 0.28 0.20 1.66 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 IBM MCD COST PG JNJ XOM GM
  • 26. WHILE GM'S DEBT-TO-EQUITY RATIO EXCEEDS 1.0, IT'S IN GOOD COMPANY, AS 185 OTHER S&P 500 COMPANIES ARE IN THE SAME BOAT.
  • 27. Looking for more information like this? The Motley Fools mission is to help the world invest better. Weve done this over the past 20 years by thinking long term and outside the box even if that means turning Wall Street on its head. To receive a special free report about what The Motley Fool thinks might be the next big industry to come out of Silicon Valley, just click here now.