GMCAUTIOUS

Current Ratio

1.15x

Updated 224h ago

Sector Performance

45th percentile

GM

1.15x

Sector Median

1.20x

Sector Avg

2.57x

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Deep Analysis

The current ratio of 1.15x means GM has $1.15 in current assets for every $1.00 in current liabilities, indicating the company can cover short-term obligations but with minimal cushion.

This level sits below the sector median of 1.21x, placing GM in the 45th percentile among peers, meaning about 55% of sector companies have a stronger liquidity position. Trend data is not available: the year-over-year change, quarter-over-quarter change, and the direction over the last eight quarters are all marked N/A, so no pattern can be assessed. The combination of a below-median current ratio with no observable trend suggests elevated liquidity risk compared to the sector, as the company has a thinner safety margin for covering debts due within a year. This metric directly supports the overall CAUTIOUS verdict, because weaker short-term liquidity adds to the rationale for a cautious investment stance.

Frequently Asked Questions

What does the Current Ratio tell investors about GM?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are GM's closest peers by Current Ratio?

The closest peers by Current Ratio include: SPG (0.41x), CHTR (0.40x), USB (0.40x), GEN (0.40x), DRI (0.39x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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GM

1.15x

Sector Median

1.20x

Sector Avg

2.57x

How GM's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.