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Gm Financial Report Analysis Essay

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Introduction

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. General Motors was founded 1908, in Flint, Michigan and currently employs approximately 284,000 people around the world. GM's global headquarters is the Renaissance Center located in Detroit, Michigan, USA, They currently manufacture their cars and trucks in 35 different countries. Its European headquarters are based in Zurich, Switzerland, and its Holden headquarters are located in Melbourne, Victoria, Australia. In 2007, 9.37 million GM cars and trucks were produced globally under the following 12 brands: Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and
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Equity Ratio measures percentage of assets provided by shareholders and the extent of using gearing.

Asset turnover Ratio measures the effectiveness of an entity in using its assets during the period.
Cash Sufficiency Ratios
Cash Sufficiency Ratios 2007 2006 2005 2004 2003
Cash Flow Adequacy 1.23 6.87 0.29 0.32 0.13
Debt coverage 2.7946 56.1395 8.9493 Cash Flow Adequacy measures the entity’s ability to cover its main cash requirements. Debt coverage measures the payback period for coverage of ling-term debt.
Cash Flow Efficiency Ratios
Cash Flow Efficiency Ratios 2007 2006 2005 2004 2003
Cash Flow to Revenues 0.1884 0.0102 0.0539 0.0145 0.0155
Operations Index 2.2119 1.1296 2.8831 0.6259 0.6363
Cash Flow Return on Assets 0.4692 0.1051 0.1002 0.0184 0.0205

Cash Flow to Revenues measures ability to convert revenue into cash flows.

Operations Index is an index measuring the relationship between profits and operating cash flows.

Cash Flow Return on Assets measures the operating cash flow return on assets before interest and tax.
Analysis of Cash Flow Statement
★ Summarize:
General Motors Corp as one of the world's largest automaker had been done extremely
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