General Motors Co. (NYSE:GM)

Goodwill

The goodwill value remains relatively stable over the five-year period, fluctuating slightly around 1900 million US dollars without any significant upward or downward trend.

Technology and intellectual property

There is a gradual decline in the value attributed to technology and intellectual property, starting from 762 million US dollars in 2020 and decreasing steadily to 554 million US dollars by 2024, indicating possible amortization or impairment of these assets.

Brands

The value of brands remains almost constant, with minimal decrease from 4300 million US dollars in 2020 to 4288 million US dollars in 2024, reflecting a stable valuation of brand-related intangible assets.

Dealer network, customer relationships and other

This category shows a slight but consistent decrease from 981 million US dollars in 2020 to 957 million US dollars in 2024, suggesting gradual amortization or decline in these intangible assets.

Intangible assets, gross carrying amount

The gross carrying amount of intangible assets demonstrates a marginal decrease over the period, from 6043 million US dollars in 2020 to 5799 million US dollars in 2024, signaling moderate asset disposals or adjustments.

Accumulated amortization

Accumulated amortization increases steadily in absolute value from -2723 million US dollars in 2020 to -3150 million US dollars in 2024, illustrating ongoing amortization expenses reducing the carrying amount of intangible assets year over year.

Intangible assets, net carrying amount

The net carrying amount of intangible assets decreases consistently from 3320 million US dollars in 2020 to 2649 million US dollars in 2024, reflecting the impact of accumulated amortization on the gross assets.

Goodwill and intangible assets, net

The combined net value of goodwill and intangible assets shows a steady decline from 5230 million US dollars in 2020 to 4551 million US dollars in 2024, driven primarily by reductions in intangible assets net carrying amount, while goodwill remains stable.

The analysis of the financial data from the five-year period reveals several notable trends in the asset base and equity position of the company.

Total Assets

There is a consistent upward trend in the total assets, both reported and adjusted for goodwill. Reported total assets grew from approximately $235.2 billion in 2020 to about $279.8 billion in 2024, marking a steady increase over the five years. Similarly, adjusted total assets increased from $233.3 billion to $277.9 billion during the same interval. The adjustment for goodwill leads to a slight reduction in asset values, but the overall growth patterns are parallel.

Stockholders’ Equity

Stockholders' equity, both reported and adjusted, shows growth initially and then a slight contraction in the latter years. Reported equity increased significantly from $45.0 billion in 2020 to $67.8 billion in 2022, indicating robust equity accumulation likely from retained earnings or capital increases. However, in 2023 and 2024, reported equity declined to $64.3 billion and $63.1 billion respectively, signaling some reduction in net assets attributable to shareholders. Adjusted equity reflects a similar pattern, rising from $43.1 billion in 2020 to $65.9 billion in 2022, followed by decreases to $62.4 billion and $61.2 billion in 2023 and 2024.

Comparative Insight Between Reported and Adjusted Figures

The adjusted figures, which account for goodwill, are consistently lower than the reported figures throughout the period, highlighting the impact of goodwill deductions on the valuation of assets and equity. Despite this difference, both sets reflect the same overall trends, confirming the reliability and consistency of the company's financial reporting over time.

Summary of Financial Health Trends

The sustained increase in total assets suggests ongoing investment or expansion in asset base. The equity growth up to 2022 indicates strengthening shareholder value, but the decrease in equity in the subsequent two years warrants attention to understand the underlying causes, such as possible losses, dividends paid exceeding earnings, or other equity-reducing events. The goodwill adjustments do not materially alter the trend narrative but provide a more conservative view of asset and equity values.

The analysis of the financial ratios over the five-year period reveals several notable trends in the company's operational efficiency, leverage, and profitability.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios demonstrate a gradual upward trend, increasing from 0.46 in 2020 to 0.61 (reported) and 0.62 (adjusted) in 2024. This improvement suggests enhanced efficiency in utilizing assets to generate sales over time.

Financial Leverage

The financial leverage ratios, both reported and adjusted, show a decline from 2020 (5.22 reported, 5.41 adjusted) to 2022 (3.89 reported, 3.98 adjusted), indicating a reduction in the use of debt relative to equity during that period. However, leverage subsequently increases again in 2023 and 2024, reaching 4.44 reported and 4.54 adjusted by 2024, suggesting a partial reversal of the deleveraging trend.

Return on Equity (ROE)

ROE exhibits fluctuations over the years, rising from 14.27% (reported) and 14.90% (adjusted) in 2020 to peaks of 16.77% and 17.32% respectively in 2021. It then declines to around 14-16% during 2022-2023 before dropping noticeably to 9.53% (reported) and 9.82% (adjusted) in 2024. This decline in the most recent year indicates a reduced return on shareholder equity, which could be a concern.

Return on Assets (ROA)

The ROA follows a similar pattern, rising from approximately 2.7% in 2020 to just over 4% in 2021, then gradually declining through 2022 and 2023, and falling sharply to around 2.15% (reported) and 2.16% (adjusted) in 2024. This suggests diminished overall profitability relative to total assets in the latest period.

Overall, the data indicates improved asset utilization over time, as demonstrated by steadily increasing asset turnover ratios. Financial leverage decreased initially but began to rise again near the end of the analyzed period. Profitability measures (ROE and ROA) peaked in 2021 but declined thereafter, with a pronounced drop in 2024, signaling a weakening in the company's ability to generate returns from both equity and assets in the most recent year. The adjusted figures, which account for goodwill, closely mirror the trends observed in reported ratios, confirming the consistency of these insights.

Total Assets Trends

The reported total assets exhibit a steady upward trend over the analyzed period, increasing from 235,194 million US dollars in 2020 to 279,761 million US dollars in 2024. This represents a cumulative growth of approximately 19%. Similarly, adjusted total assets follow a closely aligned pattern, rising from 233,284 million US dollars in 2020 to 277,859 million US dollars in 2024, signaling a consistent expansion in asset base when excluding goodwill adjustments. The relatively small difference between reported and adjusted assets suggests that goodwill does not significantly inflate total asset values over time.

Asset Turnover Trends

Both reported and adjusted total asset turnover ratios show an improving trend during the period. Reported total asset turnover remains flat at 0.46 in both 2020 and 2021, before rising to 0.55 in 2022, then further increasing to 0.61 by 2024. Adjusted total asset turnover mirrors this progression, starting at 0.47 in 2020 and 2021, moving to 0.55 in 2022, and ultimately reaching 0.62 in 2024. This upward movement indicates enhanced efficiency in utilizing total assets to generate revenue, with adjusted figures consistently marginally higher than reported ratios.

Comparative Insights

The close alignment between reported and adjusted figures for both total assets and asset turnover implies that goodwill adjustments have a limited impact on the operational efficiency metrics of the company. The consistent growth in assets paired with increasing asset turnover ratios demonstrates improvement in asset management effectiveness and suggests operational scaling with improving revenue generation relative to asset size.

The analysis of the financial data over the five-year period reveals several noteworthy trends regarding the company's asset base, equity, and financial leverage ratios.

Total Assets

Reported total assets showed a steady increase from US$235,194 million in 2020 to US$279,761 million in 2024. The adjusted total assets, which exclude goodwill, followed a similar upward trend rising from US$233,284 million in 2020 to US$277,859 million in 2024. This consistent growth indicates an overall expansion in the company's asset base over the period.

Stockholders’ Equity

Reported stockholders’ equity increased significantly from US$45,030 million in 2020 to a peak of US$67,792 million in 2022, followed by a decline to US$63,072 million in 2024. Adjusted stockholders’ equity, which accounts for goodwill adjustments, exhibited a similar pattern by rising from US$43,120 million in 2020 to US$65,881 million in 2022, then decreasing to US$61,170 million by 2024. The peak equity values in 2022 suggest a period of strong capital accumulation or profitability, while the subsequent decline may reflect changes such as dividends, share repurchases, or other equity reductions.

Financial Leverage

The reported financial leverage ratio exhibited a downward trend from 5.22 in 2020 to a low of 3.89 in 2022, before increasing again to 4.44 in 2024. The adjusted financial leverage displayed a similar pattern, decreasing from 5.41 in 2020 to 3.98 in 2022 and then increasing to 4.54 by 2024. This pattern suggests an initial deleveraging phase through 2022, implying reduced reliance on debt relative to equity, followed by a moderate increase in leverage over the next two years, indicating the company may have taken on additional debt or experienced declines in equity.

The financial data displays a multi-year overview of stockholders’ equity and return on equity (ROE) for the company, with both reported and goodwill-adjusted figures. The analysis highlights trends in these measures over the five-year period ending in 2024.

Stockholders’ Equity Trends

The reported stockholders’ equity increased from approximately $45 billion in 2020 to a peak of about $67.8 billion in 2022, indicating significant growth during this period. However, in the subsequent years, it declined to around $64.3 billion in 2023 and further decreased to approximately $63.1 billion in 2024. This pattern suggests initial strong equity accumulation followed by a mild contraction in the latest two years.

The adjusted stockholders’ equity, which excludes goodwill, followed a similar trend. It rose from about $43.1 billion in 2020 to roughly $65.9 billion in 2022. Like the reported figure, it then fell to about $62.4 billion in 2023 and $61.2 billion in 2024. The comparable pattern in both reported and adjusted equity indicates that goodwill adjustments have not substantially altered the equity trend.

Return on Equity (ROE) Trends

The reported ROE increased from 14.27% in 2020 to a high of 16.77% in 2021, indicating improved profitability and efficient use of equity in that year. It then slightly declined to 14.65% in 2022 but recovered to 15.75% in 2023, showing some volatility but maintaining a generally strong level of return. In 2024, ROE markedly decreased to 9.53%, which represents a significant reduction in equity profitability.

The adjusted ROE mirrored the reported ROE trend but consistently exhibited marginally higher values, reflecting the impact of goodwill adjustments. It rose from 14.9% in 2020 to 17.32% in 2021, declined to 15.08% in 2022, rose again to 16.24% in 2023, and dropped significantly to 9.82% in 2024. This pattern confirms the consistency of underlying operational returns before goodwill considerations.

Insights and Observations

The steady growth in equity from 2020 to 2022 suggests successful capital retention or accumulation, but the decline over the last two years implies potential challenges such as asset impairments, dividend distributions, or other equity-reducing activities. The notable drop in ROE in 2024 across both reported and adjusted figures points to lowered profitability or increased equity without proportional net income growth, warranting further examination of income statement dynamics for that year.

The similarity in trends between reported and adjusted measures indicates that goodwill adjustments have a moderate influence on equity and profitability metrics, but do not change the overall financial position trajectory. The company's ability to maintain ROE levels above 14% until 2023 reflects effective use of equity, while the sharp decline in 2024 represents a significant shift requiring attention.

Total Assets

The reported total assets demonstrated a steady upward trend over the five-year period, increasing from 235,194 million US dollars in 2020 to 279,761 million US dollars in 2024. This represents consistent asset growth year-over-year, indicating expansion or accumulation of resources. The adjusted total assets, which exclude goodwill, followed a very similar trajectory, rising from 233,284 million US dollars to 277,859 million US dollars by 2024. The minimal difference between reported and adjusted totals suggests goodwill constitutes a relatively small portion of overall assets.

Return on Assets (ROA)

Both reported and adjusted ROA experienced fluctuations throughout the period. The reported ROA started at 2.73% in 2020, peaked at 4.09% in 2021, then slightly declined to 3.76% in 2022 and 3.71% in 2023, before experiencing a more pronounced decrease to 2.15% in 2024. The adjusted ROA mirrored this pattern closely, beginning at 2.76% in 2020, reaching a high of 4.13% in 2021, then gradually decreasing to 3.79% in 2022 and 3.73% in 2023, followed by a significant decline to 2.16% in 2024. This pattern suggests improved asset efficiency up to 2021, followed by a gradual deterioration in profitability relative to assets, culminating in a notable drop in the most recent year.

Comparative Insights

The close alignment between reported and adjusted figures for both total assets and ROA indicates that goodwill adjustments have minimal impact on the overall asset base and profitability measures. The recent decline in ROA in 2024 may warrant further investigation to identify underlying factors affecting asset profitability, despite the continued growth in total assets. Overall, the company shows consistent asset growth, but the return on those assets has weakened in the latest period.