GM Revenue vs. Working Capital

GM Stock  USD 44.59  0.59  1.34%   
Taking into consideration GM's profitability measurements, General Motors is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in April. Profitability indicators assess GM's ability to earn profits and add value for shareholders. At this time, GM's Operating Cash Flow Sales Ratio is very stable compared to the past year. As of the 28th of March 2024, Days Of Sales Outstanding is likely to grow to 114.76, while Price To Sales Ratio is likely to drop 0.28. At this time, GM's Operating Income is very stable compared to the past year. As of the 28th of March 2024, Net Income Applicable To Common Shares is likely to grow to about 8.8 B, while Income Before Tax is likely to drop about 9 B.
For GM profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GM to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well General Motors utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GM's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of General Motors over time as well as its relative position and ranking within its peers.
  
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Is GM's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GM. If investors know GM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.135
Dividend Share
0.36
Earnings Share
7.32
Revenue Per Share
125.984
Quarterly Revenue Growth
(0)
The market value of General Motors is measured differently than its book value, which is the value of GM that is recorded on the company's balance sheet. Investors also form their own opinion of GM's value that differs from its market value or its book value, called intrinsic value, which is GM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GM's market value can be influenced by many factors that don't directly affect GM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GM's value and its price as these two are different measures arrived at by different means. Investors typically determine if GM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

General Motors Working Capital vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining GM's current stock value. Our valuation model uses many indicators to compare GM value to that of its competitors to determine the firm's financial worth.
General Motors is rated as one of the top companies in revenue category among related companies. It is one of the top stocks in working capital category among related companies reporting about  0.04  of Working Capital per Revenue. The ratio of Revenue to Working Capital for General Motors is roughly  23.96 . As of the 28th of March 2024, Net Working Capital is likely to grow to about 7.5 B. Also, Change In Working Capital is likely to grow to about 1.9 B. Comparative valuation analysis is a catch-all model that can be used if you cannot value GM by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for GM's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the GM's earnings, one of the primary drivers of an investment's value.

GM Revenue vs. Competition

General Motors is rated as one of the top companies in revenue category among related companies. Market size based on revenue of Consumer Discretionary industry is currently estimated at about 199.8 Billion. GM totals roughly 171.84 Billion in revenue claiming about 86% of stocks in Consumer Discretionary industry.

GM Working Capital vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

GM

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
171.84 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .

GM

Working Capital

 = 

Current Assets

-

Current Liabilities

 = 
7.17 B
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.

GM Working Capital Comparison

GM is currently under evaluation in working capital category among related companies.

GM Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in GM, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GM will eventually generate negative long term returns. The profitability progress is the general direction of GM's change in net profit over the period of time. It can combine multiple indicators of GM, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.

GM Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on GM. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of GM position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the GM's important profitability drivers and their relationship over time.

Use GM in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GM position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GM will appreciate offsetting losses from the drop in the long position's value.

GM Pair Trading

General Motors Pair Trading Analysis

The ability to find closely correlated positions to GM could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GM when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GM - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling General Motors to buy it.
The correlation of GM is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GM moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if General Motors moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GM can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your GM position

In addition to having GM in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Utilities ETFs Thematic Idea Now

Utilities ETFs
Utilities ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Utilities ETFs theme has 13 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Utilities ETFs Theme or any other thematic opportunities.
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When determining whether General Motors is a strong investment it is important to analyze GM's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact GM's future performance. For an informed investment choice regarding GM Stock, refer to the following important reports:

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When running GM's price analysis, check to measure GM's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GM is operating at the current time. Most of GM's value examination focuses on studying past and present price action to predict the probability of GM's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GM's price. Additionally, you may evaluate how the addition of GM to your portfolios can decrease your overall portfolio volatility.
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To fully project GM's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of General Motors at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include GM's income statement, its balance sheet, and the statement of cash flows.
Potential GM investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although GM investors may work on each financial statement separately, they are all related. The changes in GM's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GM's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.