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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

General Motors Co., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net operating profit after taxes (NOPAT)¹	10,525)	11,524)	10,217)	13,885)	7,866)
Cost of capital²	7.94%	7.73%	8.18%	8.82%	8.88%
Invested capital³	194,168)	182,260)	172,128)	167,086)	152,793)

Economic profit⁴	(4,901)	(2,562)	(3,868)	(849)	(5,709)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 10,525 – 7.94% × 194,168 = -4,901

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	General Motors Co. economic profit increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

General Motors Co., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income attributable to stockholders	6,008)	10,127)	9,934)	10,019)	6,427)
Deferred income tax expense (benefit)¹	1,368)	(1,041)	425)	2,214)	925)
Increase (decrease) in allowance²	15)	38)	68)	(32)	23)
Increase (decrease) in deferred revenue³	1,490)	1,780)	570)	(376)	(349)
Increase (decrease) in product warranty and related liabilities⁴	1,276)	765)	(1,244)	1,532)	444)
Increase (decrease) in reserves related to restructuring and other initiatives⁵	464)	259)	235)	(67)	(212)
Increase (decrease) in equity equivalents⁶	4,613)	1,801)	54)	3,271)	831)
Automotive interest expense	846)	911)	987)	950)	1,098)
Interest expense, operating lease liability⁷	56)	50)	49)	43)	47)
Adjusted automotive interest expense	902)	961)	1,036)	993)	1,145)
Tax benefit of automotive interest expense⁸	(189)	(202)	(217)	(208)	(240)
Adjusted automotive interest expense, after taxes⁹	712)	759)	818)	784)	905)
Interest income	(967)	(1,109)	(460)	(146)	(241)
Investment income, before taxes	(967)	(1,109)	(460)	(146)	(241)
Tax expense (benefit) of investment income¹⁰	203)	233)	97)	31)	51)
Investment income, after taxes¹¹	(764)	(876)	(363)	(115)	(190)
Net income (loss) attributable to noncontrolling interest	(45)	(287)	(226)	(74)	(106)
Net operating profit after taxes (NOPAT)	10,525)	11,524)	10,217)	13,885)	7,866)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in product warranty and related liabilities.

⁵ Addition of increase (decrease) in reserves related to restructuring and other initiatives.

⁶ Addition of increase (decrease) in equity equivalents to net income attributable to stockholders.

⁷ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,215 × 4.60% = 56

⁸ 2024 Calculation
Tax benefit of automotive interest expense = Adjusted automotive interest expense × Statutory income tax rate
= 902 × 21.00% = 189

⁹ Addition of after taxes interest expense to net income attributable to stockholders.

¹⁰ 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 967 × 21.00% = 203

¹¹ Elimination of after taxes investment income.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	General Motors Co. NOPAT increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

General Motors Co., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Income tax expense	2,556)	563)	1,889)	2,771)	1,774)
Less: Deferred income tax expense (benefit)	1,368)	(1,041)	425)	2,214)	925)
Add: Tax savings from automotive interest expense	189)	202)	217)	208)	240)
Less: Tax imposed on investment income	203)	233)	97)	31)	51)
Cash operating taxes	1,174)	1,573)	1,585)	735)	1,039)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	General Motors Co. cash operating taxes decreased from 2022 to 2023 and from 2023 to 2024.

General Motors Co., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Short-term debt and current portion of long-term debt	39,432)	38,968)	38,778)	33,720)	36,913)
Long-term debt, excluding current portion	90,300)	82,773)	75,921)	75,659)	72,981)
Operating lease liability¹	1,215)	1,171)	1,214)	1,216)	1,178)
Total reported debt & leases	130,947)	122,912)	115,913)	110,595)	111,072)
Stockholders’ equity	63,072)	64,286)	67,792)	59,744)	45,030)
Net deferred tax (assets) liabilities²	(20,619)	(21,651)	(19,832)	(20,311)	(23,482)
Allowance³	313)	298)	260)	192)	224)
Deferred revenue⁴	9,311)	7,821)	6,041)	5,471)	5,847)
Product warranty and related liabilities⁵	10,571)	9,295)	8,530)	9,774)	8,242)
Reserves related to restructuring and other initiatives⁶	1,243)	779)	520)	285)	352)
Equity equivalents⁷	819)	(3,458)	(4,481)	(4,589)	(8,817)
Accumulated other comprehensive (income) loss, net of tax⁸	11,253)	10,247)	7,901)	9,269)	13,488)
Noncontrolling interest, Cruise stock incentive awards	—)	118)	358)	—)	—)
Noncontrolling interests	2,518)	3,903)	4,135)	6,071)	4,647)
Adjusted stockholders’ equity	77,662)	75,096)	75,705)	70,495)	54,348)
Construction in progress⁹	(7,176)	(8,135)	(7,340)	(5,395)	(3,581)
Available-for-sale debt securities, marketable securities¹⁰	(7,265)	(7,613)	(12,150)	(8,609)	(9,046)
Invested capital	194,168)	182,260)	172,128)	167,086)	152,793)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenue.

⁵ Addition of product warranty and related liabilities.

⁶ Addition of reserves related to restructuring and other initiatives.

⁷ Addition of equity equivalents to stockholders’ equity.

⁸ Removal of accumulated other comprehensive income.

⁹ Subtraction of construction in progress.

¹⁰ Subtraction of available-for-sale debt securities, marketable securities.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	General Motors Co. invested capital increased from 2022 to 2023 and from 2023 to 2024.

General Motors Co., cost of capital calculations

Dec 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	49,790)	49,790)	÷	181,219)	=	0.27	0.27	×	18.93%	=	5.20%
Debt³	130,214)	130,214)	÷	181,219)	=	0.72	0.72	×	4.79% × (1 – 21.00%)	=	2.72%
Operating lease liability⁴	1,215)	1,215)	÷	181,219)	=	0.01	0.01	×	4.60% × (1 – 21.00%)	=	0.02%
Total:	181,219)					1.00					7.94%

Based on: 10-K (reporting date: 2024-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	44,042)	44,042)	÷	166,325)	=	0.26	0.26	×	18.93%	=	5.01%
Debt³	121,112)	121,112)	÷	166,325)	=	0.73	0.73	×	4.68% × (1 – 21.00%)	=	2.69%
Operating lease liability⁴	1,171)	1,171)	÷	166,325)	=	0.01	0.01	×	4.30% × (1 – 21.00%)	=	0.02%
Total:	166,325)					1.00					7.73%

Based on: 10-K (reporting date: 2023-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	54,837)	54,837)	÷	166,617)	=	0.33	0.33	×	18.93%	=	6.23%
Debt³	110,566)	110,566)	÷	166,617)	=	0.66	0.66	×	3.68% × (1 – 21.00%)	=	1.93%
Operating lease liability⁴	1,214)	1,214)	÷	166,617)	=	0.01	0.01	×	4.00% × (1 – 21.00%)	=	0.02%
Total:	166,617)					1.00					8.18%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	77,737)	77,737)	÷	193,280)	=	0.40	0.40	×	18.93%	=	7.61%
Debt³	114,327)	114,327)	÷	193,280)	=	0.59	0.59	×	2.54% × (1 – 21.00%)	=	1.19%
Operating lease liability⁴	1,216)	1,216)	÷	193,280)	=	0.01	0.01	×	3.50% × (1 – 21.00%)	=	0.02%
Total:	193,280)					1.00					8.82%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	79,077)	79,077)	÷	196,779)	=	0.40	0.40	×	18.93%	=	7.61%
Debt³	116,524)	116,524)	÷	196,779)	=	0.59	0.59	×	2.69% × (1 – 21.00%)	=	1.26%
Operating lease liability⁴	1,178)	1,178)	÷	196,779)	=	0.01	0.01	×	4.00% × (1 – 21.00%)	=	0.02%
Total:	196,779)					1.00					8.88%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

General Motors Co., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	(4,901)	(2,562)	(3,868)	(849)	(5,709)
Invested capital²	194,168)	182,260)	172,128)	167,086)	152,793)
Performance Ratio
Economic spread ratio³	-2.52%	-1.41%	-2.25%	-0.51%	-3.74%
Benchmarks
Economic Spread Ratio, Competitors⁴
Ford Motor Co.	-3.39%	-6.41%	-6.33%	-1.30%	-6.71%
Tesla Inc.	-15.05%	-8.98%	1.86%	-10.18%	-21.55%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -4,901 ÷ 194,168 = -2.52%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	General Motors Co. economic spread ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

General Motors Co., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	(4,901)	(2,562)	(3,868)	(849)	(5,709)

Automotive net sales and revenue	171,606)	157,658)	143,975)	113,590)	108,673)
Add: Increase (decrease) in deferred revenue	1,490)	1,780)	570)	(376)	(349)
Adjusted automotive net sales and revenue	173,096)	159,438)	144,545)	113,214)	108,324)
Performance Ratio
Economic profit margin²	-2.83%	-1.61%	-2.68%	-0.75%	-5.27%
Benchmarks
Economic Profit Margin, Competitors³
Ford Motor Co.	-3.65%	-6.71%	-6.96%	-1.64%	-9.84%
Tesla Inc.	-10.37%	-5.43%	1.12%	-7.51%	-26.49%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted automotive net sales and revenue
= 100 × -4,901 ÷ 173,096 = -2.83%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	General Motors Co. economic profit margin improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

General Motors Co. (NYSE:GM)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin