Реферат: General Motors Financial Analysis Essay Research Paper

The stock holders equity has increased dramatically indicating the better management of the companies equity.

The EBIT has improved for the last two year mainly because the level of interest paid has decreased due to the reduction of liabilities.

Profitability

The Gross Profit Margin has increased from 1993 to 1994 as the cost of goods sold did not increase at the same level that the sales increased. The Operating Profit Margin ratio was stable in 1995 when compared to 1994 and the Net Profit Margin has also been improving for the last two years.

The Return on Total Assets has increased due the increase in the companies profitability, while Return on Equity has decreased on the last two years as the stockholders equity increased

Overall

It is clear that the profitability of the company has been increasing for the last 2 years, mainly due to the decrease in liabilities, improvement in accounts receivable and better management of the company debt..

The company also demonstrates that the profitability can be improved even further by having better inventory management and productivity maximization on their fixed assets.

ATTACHEMENTS

Financial Statements (America On Line)

Last Quote (America On Line)

Stock Graph (2 Years – America On Line)