Essay Financial Report

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General Motors: Annual Report Analysis
Edwin Bivens

General Motors Financial Report

I have decided to do my Financial Report Analysis on General Motors also known as G.M. I have a lengthy history with General Motors, being that I was a part manufacture in the Flint, Michigan plant. Although I have a lot of experience and familiarity with GM I have never known anything about the Financial Report.
General Motors (GM) records their assets in their yearly statement which is provided to the general public in December of every year. The assets mentioned on their balance sheet are mentioned in sequence of liquidity to ensure that an investor can figure out just how much available money they've in the case they require the capital for growth, debts, etc., (Jerry J. Weygandt, 2011). It's important for administration to be conscious of business asset levels to ensure that important decisions may be made which establish what path the business takes (Jerry J. Weygandt, 2011). The decision on whether or not to launch a brand new car line (inventory) or construct a brand new plant (fixed asset) would be affected by the volume of present assets available. It's important to notice that an asset is described as any asset which will change into money within the subsequent 12 months (Jerry J. Weygandt, 2011).

By December 2010, GM had a total of 138,898.00 million in total assets (Hoovers, Inc, 2014). A total of 45% of these assets are regarded as present assets and are extremely obtainable by the business at any instant to pay debt, invest, and grow (Hoovers, Inc, 2014). The remaining 55% of GM’s assets are fixed and non-current assets which are less liquid and would require time to really change into money in case the scenario arose (Hoovers, Inc, 2014).

Total GM assets at the conclusion of December 2009 were 136,295.00 Million (Hoovers, Inc, 2014). This shows a 1% increase in 2010 which as described by shareholders is regarded as a dull rate of growth (Hoovers, Inc, 2014). Although this demonstrates that an improvement was achieved during 2010, it could also be viewed that the company’s rate of growth is at a near standstill. In case both 2009 as well as 2010 current assets were compared to 2008, they would indicate positive growth in the eyes of the investor since the comparison to 2008 versus 2009 and 2010 total assets represent a 15% growth in total (Hoovers, Inc, 2014).

The most current yearly reporting found for Common Motors was the December 2010 report. In December 2010 General Motors announced $21,061 billion (Hoovers, Inc, 2014). This was a reduction from the starting of the year revealing of $22,679 billion (Hoovers, Inc, 2014), a variation of $1,618 billion (Hoovers, Inc, 2014). This reduction of money as well as money equivalents through the year demonstrates that the business had expenditures which were over income therefore money available was utilized to pay for debt. When looking at the year of 2009, the business began out with the money and money equivalents of $14, 053 billion and finished the year at $22,679 billion (Hoovers, Inc, 2014). This demonstrates that the business is in much better position compared to the last year reported as of 2010. The business is remaining steady with prior year amounts with only small reduction.

In December 2010, General Motors announced $21,497 billion in accounts payable (Hoovers, Inc, 2014). The accounts payable sum was configured at the conclusion of the reporting year in 2010. The sum was a substantial growth from last year accounts payable of $18,725 billion (Hoovers, Inc, 2014). This demonstrates that General Motors expended much more cash compared to last year. However when looking at the sums of total debts for 2010 as well as 2009, the business has reduced liabilities in the sum of $12,868 billion (Hoovers, Inc, 2014). This demonstrates that General Motors have enhanced accounts payable in the attempt to reduce debts.