General Motors Co. (NYSE:GM)

Current income tax expense

The current income tax expense shows variability over the years with an overall fluctuating trend. It started at 849 million US dollars in 2020, decreased to 557 million in 2021, then sharply increased to 1464 million in 2022. In the following years, it rose further to 1604 million in 2023 before declining to 1188 million in 2024.

Deferred income tax expense (benefit)

The deferred income tax expense exhibits significant volatility across the five-year period. It began at 925 million US dollars in 2020, jumped substantially to 2214 million in 2021, followed by a steep decline to 425 million in 2022. Notably, in 2023, there was a deferred income tax benefit recorded as a negative value of -1041 million, indicating a reversal or deferred tax asset benefit. This was succeeded by a sharp increase to 1368 million in 2024.

Total income tax expense

The overall income tax expense combines the effects of current and deferred tax components, revealing notable fluctuations. The total expense rose from 1774 million US dollars in 2020 to a peak of 2771 million in 2021, then declined to 1889 million in 2022. A significant drop to 563 million occurred in 2023, corresponding with the deferred tax benefit that year. The expense then rebounded sharply to 2556 million in 2024.

Insights and Observations

There is a clear relationship between the deferred income tax figures and the total income tax expense, especially evident in 2023 when the significant deferred tax benefit resulted in a markedly reduced total tax expense. The variability in deferred income tax suggests changes in temporary differences or tax planning strategies affecting tax liabilities or assets. The current income tax expense shows a general upward trend from 2021 through 2023 before decreasing in 2024, indicating fluctuations in taxable income or changes in applicable tax rates. Overall, the data indicates a complex tax expense landscape influenced by both current tax obligations and deferred tax effects, underscoring the importance of analyzing both components to understand the company's tax expense dynamics fully.

U.S. federal statutory income tax rate

The statutory income tax rate remained constant at 21% throughout the five-year period from 2020 to 2024, indicating no changes in federal tax legislation affecting the company's statutory tax obligation during this time.

Effective income tax rate

The effective income tax rate displayed notable variability over the five years. Starting at 23.91% in 2020, the rate slightly increased to 24.28% in 2021, before experiencing a significant decline to 17.55% in 2022. The trend continued sharply downward in 2023, reaching a low of 5.67%, which represents a substantial deviation from both the statutory rate and previous effective rates. In 2024, the effective tax rate rebounded to 19.37%, moving closer to the statutory rate but still below the earlier levels observed in 2020 and 2021.

Insights on tax rate trends

The fluctuations in the effective income tax rate suggest that factors beyond the stable statutory rate influenced the company's tax expenses. The pronounced decrease in 2022 and especially in 2023 could reflect the impact of tax credits, deductions, or changes in the geographic mix of taxable income. The partial recovery in 2024 indicates a normalization or adjustment in these influencing factors. Overall, the disparity between the consistent statutory rate and the volatile effective rate underscores the company's varying tax strategies, benefits, or tax planning outcomes during the reviewed periods.

Postretirement Benefits Other than Pensions

There is a consistent downward trend in the postretirement benefits other than pensions, decreasing from 1,742 million USD in 2020 to 1,024 million USD in 2024. The reduction is steady each year, indicating a gradual decline in this obligation or expense over the period.

Pension and Other Employee Benefit Plans

The values show volatility, with a notable drop from 2,999 million USD in 2020 to 997 million USD in 2022, followed by a recovery to 1,421 million USD in 2024. This fluctuation could reflect changes in pension obligations or funding status over time.

Warranties, Dealer and Customer Allowances, Claims and Discounts

The amounts show a general decline from 5,538 million USD in 2020 to a low of 3,684 million USD in 2023 but then increase to 4,215 million USD in 2024. This suggests variability in warranty or allowance-related expenses, with some recovery in the last recorded year.

U.S. Capitalized Research Expenditures

This line item consistently increases over the period, rising from 6,763 million USD in 2020 to 10,111 million USD in 2024. The upward trend indicates a steady increase in investment in research and development activities.

U.S. Operating Loss and Tax Credit Carryforwards

The values declined from 7,254 million USD in 2020 to 5,861 million USD in 2022 but then rose to 6,582 million USD by 2024. This pattern shows an initial reduction followed by a partial recovery in tax benefit potentials related to operating losses and credits.

Non-U.S. Operating Loss and Tax Credit Carryforwards

A decreasing trend is observed, falling from 7,216 million USD in 2020 to 5,239 million USD in 2024. This steady decline may indicate the utilization or expiry of these tax benefits in non-U.S. jurisdictions.

Miscellaneous

This category fluctuates notably, remaining relatively stable around 3,400 million USD in the first two years, decreasing to 2,774 million USD in 2022, then sharply increasing to 5,121 million USD in 2023 before falling to 4,302 million USD in 2024. The volatility suggests a range of variable items impacting this category.

Deferred Tax Assets Before Valuation Allowances

There is a general downward trend from 34,991 million USD in 2020 to 30,240 million USD in 2022 but then an increase to 33,562 million USD in 2023, followed by a slight decrease to 32,894 million USD in 2024. This implies fluctuating underlying temporary differences affecting deferred tax assets.

Valuation Allowances

Valuation allowances consistently decrease in absolute terms from -9,095 million USD in 2020 to -6,529 million USD in 2024. This reduction suggests that the company has become more confident in realizing its deferred tax assets over the period.

Deferred Tax Assets

Reflecting the impact of valuation allowances, net deferred tax assets decline from 25,896 million USD in 2020 to 22,496 million USD in 2022, then recover to 26,365 million USD in 2024. This pattern corresponds with changes in valuation allowances and deferred tax asset bases.

Property, Plant and Equipment

The values are consistently negative and show increasing negative amounts from -1,670 million USD in 2020 to -5,111 million USD in 2024, indicating rising accumulated depreciation or impairment over the period.

Intangible Assets

Intangible assets also show a gradual decrease in value, moving from -744 million USD in 2020 to -635 million USD in 2024, reflecting amortization or impairment effects.

Deferred Tax Liabilities

Deferred tax liabilities show a significant increase in absolute terms, from -2,414 million USD in 2020 to -5,746 million USD in 2024. This increase suggests growing temporary differences that result in deferred tax liabilities.

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets have decreased from 23,482 million USD in 2020 to 19,832 million USD in 2022, followed by a partial recovery to 20,619 million USD in 2024. The trend reflects the combined effects of changes in deferred tax assets and liabilities over the years.

The analysis of the provided financial data from 2020 to 2024 reveals several notable trends regarding deferred tax assets and liabilities.

Deferred Tax Assets

The deferred tax assets have exhibited a general downward trend over the five-year period. Starting at US$24,136 million in 2020, the value decreased substantially to US$21,152 million in 2021 and continued to decline slightly to US$20,539 million in 2022. There was a moderate recovery to US$22,339 million in 2023, followed by another decline to US$21,254 million in 2024. Overall, the deferred tax assets have diminished by approximately 12% from 2020 to 2024, indicating a reduction in future tax benefits recognized by the company.

Deferred Tax Liabilities

Deferred tax liabilities showed some fluctuation during the same period but generally remained relatively low compared to deferred tax assets. The liabilities increased from US$654 million in 2020 to a peak of US$841 million in 2021 before declining in the subsequent years to US$707 million in 2022, US$688 million in 2023, and finally US$635 million in 2024. This represents an overall marginal decrease from 2020 to 2024. The small magnitude and fluctuations suggest stable management of deferred tax obligations.

In summary, the data indicates a consistent reduction in deferred tax assets over the period, partially offset by minor fluctuations in deferred tax liabilities. The net deferred tax position appears to be contracting slightly, which may reflect changes in the company's tax planning strategies, profitability, or tax regulations impacting recognized deferred taxes.

The data reveals several key trends regarding assets, liabilities, equity, and net income adjusted for reported and deferred income taxes over the five-year period.

Total Assets

Reported total assets showed a consistent upward trajectory, increasing from $235.2 billion in 2020 to approximately $279.8 billion in 2024. Adjusted total assets also followed a growing pattern, rising from $211.1 billion to $258.5 billion over the same period. The gap between reported and adjusted assets widened somewhat, reflecting potential influences of deferred taxes or other accounting adjustments.

Total Liabilities

Reported total liabilities fluctuated initially by decreasing from $185.5 billion in 2020 to $178.9 billion in 2021, but subsequently increased steadily to $214.2 billion in 2024. Adjusted liabilities mirrored this path closely, starting slightly lower at $184.9 billion in 2020 and ending close to $213.5 billion in 2024. The close alignment between reported and adjusted liabilities suggests limited divergence related to income tax adjustments.

Stockholders' Equity

Reported stockholders' equity experienced marked growth from $45.0 billion in 2020 to a peak of $67.8 billion in 2022, followed by a decline to approximately $63.1 billion in 2024. Adjusted equity demonstrated a more volatile pattern, nearly doubling from $21.5 billion in 2020 to $47.9 billion in 2022 but then declining sharply to about $42.5 billion by 2024. The adjusted equity figures consistently trailed the reported values by a significant margin, indicating substantial deferred tax or other adjustments impacting equity.

Net Income Attributable to Stockholders

Reported net income showed an upward trend from $6.4 billion in 2020, peaking at $10.1 billion in 2023 before falling sharply to $6.0 billion in 2024. Adjusted net income, accounting for income tax and other adjustments, was consistently higher than reported net income for most periods, rising from $7.4 billion in 2020 to a peak of $12.2 billion in 2021, then gradually declining to $7.4 billion by 2024. The divergence between reported and adjusted net income suggests that the adjustments tend to increase the company's profitability metrics, particularly in 2021 and 2022, before converging closer towards 2024.

The financial data presents a detailed view of key performance ratios over a five-year period, showing both reported and adjusted figures.

Net Profit Margin

The reported net profit margin exhibited a peak in 2021 at 8.82%, followed by a decline each subsequent year, reaching 3.5% in 2024. The adjusted net profit margin similarly peaked in 2021 at 10.77%, but showed a steeper decrease afterwards, ending at 4.3% in 2024. This downward trend post-2021 suggests weakening profitability relative to sales.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios display a consistent upward trend throughout the period. Reported turnover increased from 0.46 in 2020 to 0.61 in 2024, while adjusted turnover improved from 0.51 to 0.66 over the same span. This indicates an improving efficiency in utilizing assets to generate revenue.

Financial Leverage

Reported financial leverage decreased significantly from 5.22 in 2020 to 3.89 in 2022, but then increased again to 4.44 in 2024. Adjusted financial leverage depicts a sharper initial decline from a high of 9.79 in 2020 to 5.08 in 2022, followed by a rise to 6.09 in 2024. Overall, this suggests fluctuating reliance on debt or equity financing that initially lowered leverage but later increased moderately.

Return on Equity (ROE)

Reported ROE follows a somewhat volatile but overall downward pattern after peaking at 16.77% in 2021, declining to 9.53% in 2024. Adjusted ROE displays a more pronounced decrease from a very high 34.12% in 2020 to 17.37% in 2024. The decline in both ROE metrics underscores diminishing profitability against shareholders' equity.

Return on Assets (ROA)

Reported ROA improved markedly from 2.73% in 2020 to 4.09% in 2021, but then gradually declined to 2.15% in 2024. Adjusted ROA metrics reflect a similar pattern, with an initial increase to 5.47% followed by a steady downward trend ending at 2.85%. This pattern highlights a reduction in asset efficiency for generating earnings after 2021.

Overall, the data reveals that while asset utilization efficiency improved steadily, profitability measures including net profit margins, ROE, and ROA have generally decreased since their peaks in 2021. Financial leverage trends suggest an initial effort to reduce leverage that somewhat reversed later. The divergence between reported and adjusted figures, especially in profitability and leverage metrics, indicates the impact of tax and other adjustments on the financial performance assessment.

The financial data over the five-year period reveals notable fluctuations in both reported and adjusted net income attributable to stockholders, as well as their corresponding net profit margins.

Net Income Trends

The reported net income showed a significant increase from 6,427 million US dollars in 2020 to 10,019 million in 2021. However, this was followed by a slight decline to 9,934 million in 2022, a modest recovery to 10,127 million in 2023, and a sharp drop to 6,008 million in 2024. Adjusted net income exhibited a similar pattern, increasing from 7,352 million in 2020 to a peak of 12,233 million in 2021, then steadily decreasing to 10,359 million in 2022, 9,086 million in 2023, and 7,376 million in 2024. Overall, adjusted net income consistently exceeded reported net income each year.

Net Profit Margin Trends

The reported net profit margin improved markedly from 5.91% in 2020 to 8.82% in 2021, suggesting enhanced profitability. This margin then experienced declines in the subsequent years, falling to 6.9% in 2022, 6.42% in 2023, and dropping sharply to 3.5% in 2024. The adjusted net profit margin followed a comparable trajectory, increasing from 6.77% in 2020 to 10.77% in 2021 before declining to 7.19% in 2022, 5.76% in 2023, and rising slightly to 4.3% in 2024. The adjusted margins were consistently higher than reported margins, indicating that the adjustments positively influenced profitability measurements.

Insights and Patterns

The data highlights a peak in performance during 2021, with both income and margins reaching their highest points, followed by a gradual decline through 2024. The divergence between reported and adjusted figures suggests that certain tax-related or other adjustments have had a positive impact on reported profitability. The sharp decline in both income and profit margins in 2024 indicates potential challenges in that period which merit further investigation.

Total Assets

The reported total assets have shown a consistent upward trend from 235,194 million US dollars in 2020 to 279,761 million US dollars in 2024. This reflects an overall growth in the asset base over the five-year period. Similarly, the adjusted total assets also increased steadily from 211,058 million US dollars in 2020 to 258,507 million US dollars in 2024, suggesting an ongoing expansion even after accounting for deferred income tax adjustments.

Total Asset Turnover

The reported total asset turnover ratio remained flat at 0.46 in both 2020 and 2021 but showed a notable improvement starting in 2022, increasing to 0.55 and continuing upward to 0.61 by 2024. This rising trend indicates enhanced efficiency in utilizing assets to generate revenue over time. The adjusted total asset turnover ratio exhibits a similar pattern, increasing from 0.51 in 2020 and 2021 to 0.66 in 2024, which further confirms the improvement in asset utilization after adjusting for deferred income tax impacts.

Overall Insights

Both reported and adjusted figures display consistent growth in total assets accompanied by higher asset turnover ratios. This combination suggests that the company is not only increasing its asset base but also improving its operational efficiency in generating revenue from those assets. The adjustments for deferred income taxes do not significantly alter the observed efficiency trends, reinforcing the reliability of the positive performance trajectory. The convergence in trends between reported and adjusted data highlights sound asset management practices and potentially effective tax strategies impacting the financial presentation.

Over the five-year period, total assets displayed a consistent upward trend. Reported total assets increased steadily from 235,194 million US dollars at the end of 2020 to 279,761 million US dollars by the end of 2024. Adjusted total assets also grew over the same period, rising from 211,058 million US dollars in 2020 to 258,507 million US dollars in 2024, indicating growth in the asset base albeit at a slightly lower level when adjusted for income tax effects.

Stockholders' equity, however, showed a more variable pattern. Reported stockholders' equity increased significantly in 2021 and 2022, reaching a peak at 67,792 million US dollars in 2022, before declining in the subsequent two years to 63,072 million US dollars by the end of 2024. Adjusted stockholders' equity mirrored this trend but at a substantially lower magnitude, rising from 21,548 million US dollars in 2020 to nearly 47,960 million US dollars in 2022, then falling to approximately 42,453 million US dollars in 2024. This suggests that the adjustments for deferred and reported income tax have a notable impact on equity values, with significant fluctuations observed particularly between 2022 and 2024.

Financial leverage ratios reflect the changes observed in assets and equity. The reported financial leverage ratio decreased from 5.22 in 2020 to a low of 3.89 in 2022, indicating a reduction in relative debt levels or an increase in equity. However, it then increased again to 4.44 by 2024, suggesting a build-up of leverage in the most recent years. In contrast, the adjusted financial leverage ratio began at a much higher level of 9.79 in 2020 and decreased to 5.08 by 2022, before rising again to 6.09 in 2024. The higher adjusted ratio values imply that deferred and reported income tax adjustments increase the perceived financial leverage significantly, with the ratio showing more pronounced volatility over time.

In summary, the data shows an expanding asset base alongside fluctuating equity levels, which together influence the leverage ratios. Adjustments for deferred and reported income taxes have a material effect on the financial metrics, leading to lower adjusted equity values and higher adjusted leverage ratios compared to reported figures, highlighting the importance of these adjustments in assessing the company's financial structure and risk profile.

The financial data exhibits several notable trends related to profitability, equity, and returns over the five-year period examined.

Net Income Attributable to Stockholders

The reported net income shows a strong increase from 2020 through 2021, rising from 6,427 million USD to 10,019 million USD, followed by a relatively stable performance in 2022 and 2023, with figures close to 10,000 million USD. In 2024, there is a marked decrease to 6,008 million USD. Adjusted net income follows a similar trend but with higher absolute values, peaking in 2021 at 12,233 million USD before declining steadily in subsequent years to 7,376 million USD by 2024.

Stockholders’ Equity

Reported stockholders’ equity rises substantially from 45,030 million USD in 2020 to a peak of 67,792 million USD in 2022, then declines somewhat in 2023 and 2024, settling at 63,072 million USD. Adjusted equity, however, starts much lower and follows a similar pattern of growth and subsequent contraction, increasing sharply from 21,548 million USD in 2020 to 47,960 million USD in 2022 before decreasing to 42,453 million USD in 2024.

Return on Equity (ROE)

Both reported and adjusted ROE demonstrate a downward trajectory from their peaks early in the period. Reported ROE increases from 14.27% in 2020 to 16.77% in 2021 but then declines steadily to 9.53% by 2024. Adjusted ROE shows a more pronounced decrease, dropping from a high of 34.12% in 2020 to 17.37% in 2024, indicating diminishing efficiency in generating returns on equity when adjustments are taken into account. The adjusted ROE consistently remains higher than the reported ROE across all years, suggesting that the adjustments have a significant impact on measuring profitability.

Overall, the patterns reveal a phase of strong growth in profitability and equity up to 2021-2022, followed by a period of deteriorating profitability and a contraction in adjusted and reported equity levels. The declining ROE ratios, more marked in the adjusted figures, may indicate emerging pressures on profitability relative to the company’s equity base.

Net Income Attributable to Stockholders

Reported net income shows a general upward trend from 2020 to 2023, increasing from 6,427 million USD to 10,127 million USD, followed by a significant decline to 6,008 million USD in 2024.

Adjusted net income exhibits a similar pattern but with higher figures in each period. It grows from 7,352 million USD in 2020 to a peak of 12,233 million USD in 2021, then gradually decreases to 7,376 million USD by 2024.

Total Assets

Reported total assets steadily increase over the five-year period, rising from 235,194 million USD in 2020 to 279,761 million USD in 2024, indicating continuous asset growth.

Adjusted total assets follow a similar upward trajectory but are consistently lower than the reported values. They increase from 211,058 million USD in 2020 to 258,507 million USD in 2024.

Return on Assets (ROA)

Reported ROA experiences improvement from 2.73% in 2020 to a peak of 4.09% in 2021, thereafter showing a gradual decline to 2.15% by 2024.

Adjusted ROA starts at a higher level than reported ROA in 2020 (3.48%) and reaches its maximum in 2021 at 5.47%, then declines more sharply to 2.85% by 2024.

Insights

The data indicates a period of strong profitability and asset growth between 2020 and 2021, with both reported and adjusted net income and ROA peaking in 2021. Subsequently, there is a downward trend in profitability despite continued asset growth, suggesting diminishing returns on assets.

The adjusted figures consistently show higher profitability and lower asset base than the reported figures, reflecting the impact of income tax adjustments on financial measurements.

The significant drop in net income in 2024, alongside falling ROA, may warrant further investigation into operational challenges or market conditions affecting performance during that period.