CLC - Ratio Analysis. Accounting, Finance, SPSS Coursework

Ratio Analysis of General Motors
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Ratio Analysis of General Motors
The weaknesses and strengths of a business can be determined from its ratio analysis. The ratios show the performance of the company in different fields. It also shows the financial health of the company. The ratio analysis conducted on General Motors shows the company is not financially healthy as shown by its Current Ratio and EV/EBITDA NTM ratio.
Current Ratio of General Motors
The current ratio is used by businesses to show a rough idea of the ability of the company to pay back all short-term liabilities owed using its current short-term assets. The Current Ratio of General Motors for the fiscal year which ended in December 2019 was 0.88 ("GM Current Ratio | General Motors Co - GuruFocus.com", 2020). Computations are shown in the appendix.
The current ratio above gives a sense of the efficiency of General Motors operating cycle or its ability to turn the available products into cash. Companies that face challenges in getting paid on receivables or their inventory turnover is long...