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This is an analysis of General Motors Financial Statement
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Brief History
• Founded in 1908
• Industry leader in 1927
• Owned Pontiac, Cadillac, GMC, Chevrolet…
• Lost market to Japanese manufacturers in late 1970s
• Got billions of dollars in loan from government
• Went bankrupt in 2009
Competitors
• Three main competitorsFord
Chrysler
Toyota
GM Ford ToyotaIndustry Median
ROE (35.8%) N/A (4.0%) (0.6%)
Current Ratio 0.51 2.2 1.07 1.32
Gross Profit Margin
-14% 15.01% 10.10% 15.99%
Asset turnover
1.24 0.5 0.7 0.6
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
ROE
ROE
0
0.5
1
1.5
2
2.5
GM Ford Toyota IndustryMedian
Current Ratio
Current Ratio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
GM Ford Toyota IndustryMedian
Asset turnover
Asset turnover
-15%
-10%
-5%
0%
5%
10%
15%
20%
Gross Profit Margin
Gross Profit Margin
3 QUESTIONS
Invest Lend Work
Will I Invest ??
Automobile Industry
Stock Price $ 0.67
LOSS!!!!!
Will I lend ??
Debt
Equity
LENDER???
Will I work ??
ROERNOANOPAT
Thank You