Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total debt to its shareholders’ equity, showing how much financing comes from borrowing versus owner investment.

GM’s current ratio of 2.04x means it has $2.04 in debt for every $1 of equity, indicating a heavy reliance on debt. This is far above the sector median of 0.72x, placing GM in the 86th percentile—meaning only 14% of peers carry more debt relative to equity. Because year-over-year and quarter-over-quarter changes are both listed as N/A, no trend data is available to assess whether leverage is rising or falling. The combination of a high absolute ratio and no visible trend implies elevated financial risk, as the company must service its large debt load without recent evidence of improvement. This directly supports the overall CAUTIOUS verdict, since a debt-heavy capital structure can strain earnings and increase vulnerability during downturns.

Frequently Asked Questions

Closest Sector Peers