General Motors (NYSE:GM) is a leading automaker known for its wide range of vehicles and global presence. The company operates in key markets such as the United States and China, competing with other major automakers like Ford and Toyota. GM's recent financial performance has been noteworthy, as it reported earnings per share of $1.92, surpassing the estimated $1.75.
In its Q4 2024 earnings call, GM reported actual revenue of approximately $47.7 billion, exceeding the estimated $44.98 billion. Despite this strong performance, GM's stock experienced a decline of 10.26% on the same day. This drop occurred even as the company expressed optimism for 2025, forecasting improved bottom-line results, as highlighted by The Motley Fool.
GM's profit outlook is driven by strong performance in the US market and an improved showing in China. This positive forecast underscores the company's resilience and strategic positioning in these key regions, as reported by Bloomberg Television. The company's low price-to-earnings (P/E) ratio of 4.94 suggests a relatively low valuation compared to its earnings.
The company's financial metrics reveal a price-to-sales ratio of about 0.30, indicating modest market valuation of its sales. GM's enterprise value to sales ratio is around 0.86, reflecting its total valuation in relation to sales. The enterprise value to operating cash flow ratio is approximately 8.04, providing insight into how the market values GM's cash-generating ability.
GM's earnings yield of about 20.23% offers a significant return on its earnings relative to its share price. The debt-to-equity ratio of approximately 1.80 indicates a considerable amount of debt financing. Additionally, GM's current ratio of around 1.21 suggests a reasonable level of liquidity to cover short-term liabilities.
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