Description: The article is about gm financial login. This is a financial analysis of general Motor Company. The author compares GM with Ford Motor Company to see the growth momentum of GM. He does this presentation from many aspects.
Today I will conduct a financial analysis of general Motor Company or GM. GM is the largest automaker in the United States and was founded in 1908 by William C Durant. GM public in 2010 following the Great Recession of 2008,this move was not only for GM to begin to pay back some of their debt that they had acquired in the downfall but it also brought them back into a positive light for many Americans.
Today GM has 225,000 employees with an astounding 19,000 dealers in 125 countries. The competitor that I have chosen today to compared to GM is Ford Motor Company,it is another leader in the automotive industry. The profitability analysis shows GM’s return on assets which shows the percentage of profit a company earns in relation to its overall resources are significantly larger than that of Ford Motor Company’s in the past two years.
In addition,GM’s profit margins were also larger than Ford last year and were more than competitive in the years before that. Asset utilization ratios helped analyze and identify whether a company is wasting its assets or putting them to good use,some asset utilization ratios include total asset turnover ratios and fixed asset turnover ratios.
GM’s asset turnover are consistently above that affords,they have been among the leaders across the board in the industry. By consistently utilizing the assets,GM has set themselves up to sustainably continue to perform. The next ratios we are going to look at are GM’s current as well as quick ratio,these give a picture of a firm’s liquidity or their degree of ease in which assets can be converted into cash and put into the market without losing their value.
Current ratios measure a company’s ability to pay back their short-term obligations. Outside of 2016 GM has consistently shown good financial health here as well as numbers well above Ford’s ratio,this helps investors remain optimistic to the future. Outside of this past fiscal year,GM has had a better quick ratio than ford,however seeing that number lies closer to one would be preferable.
The financial ratio analysis looks at debt utilization and how well GM and Ford manage their debts,by looking at the two tables and specifically the company’s total debt to equity ratio,we can see the GM has slightly increased their debt in recent years while Ford in fact has been reducing their debt,that being said GM still has a smaller ratio and has it for years.
When looking at GM and how they currently are managing their finances as well as what they are doing to set themselves up for the future,it is encouraging to see the steps being made in the right direction.
It all starts with Mary Barra GM CEO and her strong leadership from scaling back abroad and focusing time and resources back home to strive to become a new leader in ways to fuel and run our cars more economically friendly and environmentally friendly,Barra has brought a new lifeblood to the company and the industry.
General Motors stock has remained fairly constant as seen on the graphs here,with their peak products coming in December of 2013 at $40.87 cents and their current selling price not being too far off from that at $34.93,investors can sleep easy at night knowing that their investments are safe.
Those safe is good and comfortable,senior leadership at GM is of the mindset that they should be a dominant force in the industry. By selling Oakland Europe in many ways freed up much of their time and resources to focus on North America and China,GM has made it clear that they are not going to keep anything while they could be thriving elsewhere.
By becoming competitive in all vehicles and not trucks and SUVs,GM’s plan to create a more sustainable and healthy environment for success going forward looks positive. GM currently trades stocks on the New York Stock Exchange as well as the Toronto Stock Exchange,by focusing on North America and China as the two main sources for new growth,GM expects to see the fruits of their labor come quite soon.
Since 2012,GM has seen their rise in their net income total assets and total equity all which are fairly good signs that though there may be tough times the future looks bright.
Like other company who is hoping to grow or expand their reach,GM must gather funds in order to do so,therefore they’ve accumulated nine billion dollars in bonds out standing,this in many ways place to the old adage you have to spend money to make money. In order to get where GM wants to be,they must be prepared to spend the cash.
GM’s long-term debt has slightly gone up in the past year,but it’s raised little concern when it comes to forecasting their future overall. This quick SWOT analysis shows GM in a different light outside the numbers,the biggest strength is the North American and Chinese presence while their biggest fault may be their image in the public eye.
A great opportunity that GM has already been warming up towards for years has been the hybrid electric cause that being said with the recently powerful surge of Tesla,the market has suddenly become smaller.
There are many things that they are doing right in order to remain a top player in the automotive game. By continuing to focus on shine and electric cause,it may in fact be able to make an incredible first impression on millions of new customers,however with Tesla making similar moves to grab their stake in the market,research and development for new products has become even more crucial.
Lastly the autonomous self-driving car is less than two decades away,being the first to market may pay large dividends long-term for General Motors. In conclusion I think the General Motors finances are in a good spot. They have set themselves up nicely for a future and are spending money in the right places in order to ensure that,however competition abroad and at home is not getting any easier and if GM hopes to be atop the automotive world once again,they need to continue to innovate and create the next generation of transportation.