: 5 (As of Dec. 2023)
General Motors Co has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
General Motors Co's Interest Coverage for the quarter that ended in Dec. 2023 was 4.14.General Motors Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.71.As of today, General Motors Co's Altman Z-Score is 1.23.
Competitive Comparison
For the Auto Manufacturers subindustry, General Motors Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
General Motors Co Financial Strength Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, General Motors Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where General Motors Co's Financial Strength falls into.
General Motors Co Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
General Motors Co's Interest Expense for the months ended in Dec. 2023 was $-222 Mil. Its Operating Income for the months ended in Dec. 2023 was $918 Mil. And its for the quarter that ended in Dec. 2023 was $83,680 Mil.
General Motors Co's Interest Coverage for the quarter that ended in Dec. 2023 is
Interest Coverage | = | -1 | * | Operating Income (Q: Dec. 2023 ) | / | Interest Expense (Q: Dec. 2023 ) |
= | -1 | * | 918 | / | -222 | |
= | 4.14 |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
General Motors Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
Debt to Revenue Ratio | = | Total Debt (Q: Dec. 2023 ) | / | Revenue | ||
= | ( | + | ) | / | Revenue | |
= | (38968 | + | 83680) | / | 171916 | |
= | 0.71 |
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
General Motors Co has a Z-score of 1.23, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.23 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
General Motors Co(NYSE:GM) Financial Strength Explanation
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
General Motors Co has the Financial Strength Rank of 5.
General Motors Co Financial Strength Related Terms
Thank you for viewing the detailed overview of General Motors Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
General Motors Co (NYSE:GM) Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Consumer Cyclical » » General Motors Co (NYSE:GM) » Definitions » Financial Strength
Comparable Companies
F LI STLA RIVN NIO XPEV VFS LCID PSNY NWTN TSLA TSE:7203 SZSE:002594 XTER:MBG XTER:BMW XTER:VOW3 MIL:RACE TSE:7267 NSE:MARUTI XKRX:005380
Traded in Other Exchanges
GM:Peru GM:Mexico 1GM:Italy 8GMd:UK 0R0E:UK 8GM:Germany 8GM:Germany 8GM:Germany 8GM:Germany GMCO34:Brazil GMOT:Austria
Address
300 Renaissance Center, Detroit, MI, USA, 48265-3000
Website
General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under four segments: GM North America, GM International, Cruise, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its U.S. market share leader crown in 2022, after losing it to Toyota due to the chip shortage in 2021, with share up 170 basis points to 16.4%, a full percentage point ahead of Toyota. GM's Cruise autonomous vehicle arm has previously done driverless geofenced AV robotaxi services in San Francisco and other cities but stopped in late 2023 after an accident. GM owns over 80% of Cruise. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.
Executives
Mark L Reuss | officer: Vice President | 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000 |
Jan E Tighe | director | C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282 |
Rory Harvey | officer: Executive Vice President | 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265 |
Michael Robert Abbott | officer: Executive Vice President | 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265 |
Paul A Jacobson | officer: Executive Vice President & CFO | 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265 |
Gerald Johnson | officer: Executive Vice President | 300 RENAISSANCE CENTER, M/C: 482-C23-A68, DETROIT MI 48265 |
Stephen K. Carlisle | officer: Executive Vice President | 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265 |
Jon Mcneill | director | 45500 FREMONT BLVD, FREMONT CA 94538 |
Joanne C. Crevoiserat | director | 6301 FITCH PATH, NEW ALBANY OH 43054 |
Wesley G Bush | director | 333 MAPLE AVENUE EAST, #3080, VIENNA VA 22180 |
Julian G. Blissett | officer: Executive Vice President | 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265 |
Patricia F Russo | director | 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265 |
Douglas L Parks | officer: Executive Vice President | 300 RENAISSANCE CENTER, M/C: 482-C23-A68, DETROIT MI 48265 |
Craig B. Glidden | officer: Executive Vice President & GC | 300 RENAISSANCE CENTER., M/C: 482-C25-A36, DETROIT MI 48265-3000 |
Christopher Hatto | officer: VP, Controller & CAO | 27175 HAGGERTY ROAD, NOVI MI 49377 |
General Motors Co (NYSE:GM) Headlines
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