GM Return on Equity (ROE) Analysis
Updated 1059h ago·SEC filings & market data
Key Takeaway
GM’s Return on Equity (ROE) of 3.2% means for every dollar of shareholder equity, the company generates 3.2 cents of profit.
Sector Performance
21th percentileGM
3.2%
Sector Median
13.2%
Sector Avg
16.4%
Prior Period
4.0%(Jul 2026)
Deep Analysis
GM’s Return on Equity (ROE) of 3.2% means for every dollar of shareholder equity, the company generates 3.2 cents of profit.
That sits far below the sector median of 13.8%, placing GM in the 18th percentile among peers. The year-over-year change is not available, but quarter-over-quarter ROE fell 20.0%, dropping from 4.0% to 3.2%. A low ROE that is also declining signals weak profit generation relative to equity and suggests higher investment risk compared to more efficient sector peers. This combination points to limited near-term opportunity from a profitability standpoint. The metric directly supports the overall CAUTIOUS verdict, as GM’s returns are well below the sector norm and deteriorating on a sequential basis.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about GM?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
Learn More About Return on Equity (ROE)
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
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3.2%
Sector Median
13.2%
Sector Avg
16.4%
How GM's Return on Equity (ROE) compares to sector peers.
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