GMCAUTIOUS

GM Return on Equity (ROE) Analysis

3.2%

Updated 201h 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

20th percentile

3.2%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

4.0%(Jul 2026)

↓ Declining

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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.

Who are GM's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.