GMGeneral Motors
Is the business good?
More warning than reassurance: margins compressing and returns that lean on debt.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 4% = margin × turnover × leverage.
All from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GM?
General Motors earns 3.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.1 points below what the capital costs: growth destroys value
- Operating margin
- 0.98%
Operating margin · Auto Manufacturers median −3.6% · 12 months to Q2 2026
- Share count, year on year
- −6.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 5.4% |
| FY2021 | 7.3% |
| FY2022 | 6.6% |
| FY2023 | 5.4% |
| FY2024 | 6.8% |
| FY2025 | 1.6% |
Details›
- Operating margin12 months to Q2 2026
- 0.98%
- Net margin12 months to Q2 2026
- 1.1%
- Free cash flow margin
- 7.8%
- Revenue, trailing twelve months
- $185.5B
- Free cash flow, trailing twelve months
- $14.4B
- Net income, trailing twelve months
- $1.95B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Auto Manufacturers
The closest names by size in the same industry