GM Financial Overview Essay -- GCSE Business Marketing Coursework

GM fiscal OverviewIntroductionThe general Motors familiarity is a multifaceted company but its primary function is the manufacturing of automobiles and let voltaic pile trucks (SIC 3711). The General Motors stock is listed on the New York Stock Exchange and has almost 1,426,592,046 outstanding shares on the marketplace, as of 10/14/2001. It is headquartered in Detroit bread with offices around the world. General Motors has many other opeproportionns besides automobile manufacturing including General Motors Acceptance Corporation Financial Services, Hughes Electronics Corporation, and the GM Locomotive Group. (Disclosure.com)Financial Statement AnalysisOverall, General Motors has had five improvementcap adequate to(p) years with change magnitude sales during the same period. GM has also paid a contumacious dividend to its shareholders over the same period. The one-year, which was below average for GM, was 1998. During this period, GM was restructuring its top vigil ance and operations and also incurred a union strike of 54 days. However, GM did return to better performance in 1999 and 2000. GM overall was able to attain a fixed dividend of $2.00 per share and increase the shareholders value over the past five years. The first observation from the financial data in appendix one is that General Motors has a low profit allowance account and is generally less than the exertion average each year. The pie-eyed is able to keep a low profit margin beca utilise they have such(prenominal) high sales volumes throughout the world. This system can be both(prenominal) an asset and liability in business planning. The plus side of the strategy is that GM is able to sell a large number of vehicles in the marketplace due to the lower selling price as compared to the competitor. However, the down side of the strategy is that there is a possibility that if sales volumes decrease, the firm can incur a significant decline in the EPS because the profit m argin on each item sold is very low. If the ball-shaped economy sours, GM can have a very tight time meeting shareholder expectations.Another observation is that GM looks to use more debt financing that equity financing for funding their activities. The debt to equity ratio has steadily decreased over the past five years and is high that the industry average. Also, the current and quick ratios are much lower than the industry averages. This again can pose so... .... 1996 edt. (1997) (page 320). Murray Hill, NJ Dun & Bradstreet.Dun & Bradstreet. application Norms and Key Business Ratios. 1995 edt. (1996) (page 327). Murray Hill, NJ Dun & Bradstreet.General Motors Corp. (2001, October 14). Retrieved on October 20, 2001 from www.disclosure.com.General Motors Corporation 1998 Annual Report. (1998). (pp. 55 83).General Motors Corporation 1999 Annual Report. (1999). (pp. 53 - 93).General Motors Corporation 2000 Annual Report. (2000). (pp. 41- 79). hackneyed & Poors. General Motors (GM). (1999) Standard Corporation Descriptions. (pp. 6000 6003) New York, NY McGraw-Hill. Troy, PhD., Leo. Almanac of Business and Industrial Financial Ratios. thirty-second edt. (2001) (page 159) Paramus, NJ Prentice Hall.Troy, PhD., Leo. Almanac of Business and Industrial Financial Ratios. thirty-first edt. (2000) (page 159) Paramus, NJ Prentice Hall. Troy, PhD., Leo. Almanac of Business and Industrial Financial Ratios. thirtieth edt. (1999) (page 159) Paramus, NJ Prentice Hall.Troy, PhD., Leo. Almanac of Business and Industrial Financial Ratios. twenty-ninth edt. (1998) (page 159) Paramus, NJ Prentice Hall.