General Motors Essay

2374 Words Aug 18th, 2013 10 Pages
Running head: GENERAL MOTORS

Assignment #5 General Motors
DeAndre Daniels
Strayer University
Financial Management
FIN 534
Dr. Ron
06-September-2011

Summary
This report discusses General Motors Corporation, one of the largest auto manufacturers globally, manufacturing cars and trucks in 34 countries and its subsidiaries. This assignment is an analysis of General Motors Corporation’s financial stability. It is hoped that these findings illustrate the strengths and weaknesses of the company’s common stock as a potential investment opportunity. GM currently focuses on four brands as well as strategic joint ventures with other automotive brands worldwide. GM operates under the core competencies of technology, leadership, large
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Total combined GM and Old GM worldwide vehicle sales in December 2009 were 7.5 million. Old GM’s total worldwide vehicle sales were 8.4 million December 2008. Substantially all of the cars, trucks and parts are marketed through retail dealers in North America, and through distributors and dealers outside of North America, the substantial majority of which are independently owned (secfilings.nasdaq.com).
According to the latest available data per 2/19/2011 the company had around
209,000 employees and market capitalization of 54.76 billion U.S. dollars. Its quarterly revenues growth was 27.20% year on year, resulting in the 131.04 billion U.S. dollars of revenue for the last trailing twelve months. Gross operating margin was 10.35% and net operating margin was 1.66%, both data for trailing 12 months. Company's net income in the last four quarters was 638
Million dollars, giving us earnings per share (EPS) of -0.02. Current price earnings ratio
(P/E) is N/A, and price sales ratio is 0.42, all figures for trailing twelve months. Expected price earnings growth ratio (PEG) for the following five years is 1.17.
The new General Motors Company was formed by the United States Treasury (UST) in 2009, and prior to July 10, 2009, the business was operated by Old GM. On June 1, 2009, Old GM and three of its domestic direct and indirect subsidiaries filed voluntary petitions for relief under Chapter 11 (the Chapter 11 Proceedings) of the Bankruptcy Code in the United

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