I. Background and Industry
General Motors, along with its competitors, are part of the Automotive Manufacturer (Major) industry of the Consumer Goods economic sector. Companies in this industry make passenger cars and light trucks, as well as chassis for those vehicles. Demand is driven by employment and interest rates while the profitability of the individual company depends on manufacturing efficiency, product quality, and affective marketing. Large companies have economies of scale in purchasing and marketing while smaller companies can compete by focusing on specialized markets. The U.S. industry alone is highly concentrated with the top four companies account for about 75 percent of sales.
General Motors…show more content… In contrast to the main competitors for fiscal year 2013, Toyota has 95% more total liabilities as GM ($241,152 million) and 142% more total liabilities than Ford Motor Co. Toyota Motor Corp had an increase of 13.3% in Total Liabilities from 2012 to 2013 while Ford Motor Co. had an increase of .5% from 2012 to 2013.
C. Total Revenues
For the analyzed period, the amount of Total Revenues increased successively, and by the end of 2013, increased over 3% since 2011. In 2013 alone, the amount of total revenues increased by 2.08 % to $155,427 million and increased 1.32% to $152,256 million in 2012. General Motors’ total revenue growth was significantly lower than that of Ford for fiscal year 2013 (9.4%), and slightly smaller than Toyota: 3.7%.
D. Working Capital
General Motors’ working capital growth percentage between the 3 year analyzed periods was considerably different. Working capital increased by 36.82% from 2011 ($11,697 million) to 2012 ($16,004 million). GM still experienced growth in working capital, however it decreased to 19.28% from 2012 to 2013 ($19,089 million). In comparison to the main competitors’ growth rate for fiscal year 2013, General Motor’s was significantly lower than Toyota: 41.3% and slightly higher than Ford: 12.8%.
E. Retained Earnings
According to General Motor’s Common Size Balance Sheet, Retained Earnings maintained a somewhat steady growth