Tuesday, January 4, 2011

GM still broke

GM (General Motors), AKA "Government Motors" as the US government is a 61% shareholder, has relisted on NYSE late last year, and its financials still do not look all that great. While the Economist suggests that net income's in the green, its fiancial statments suggests otherwise.

Balance Sheet

While GM's Total Assets have increased from $131,899M to $137,238M, at +4%; Total Liabilities have increased from $101,886M to $107,493M, at +5.5%. This means net equity has actually suffered a -1.5% for the shareholders.

Cash Flow

"Cash from Financing Activities " has spiked significantly the past 2 quarters. This suggests that GM is in dire need for cash, a bulk of it to pension liabilities, "Issuance (Retirement) of Debt, Net ", of around $7.3B.

Back to the income statement. We see a net income of roughly $2.1B from last quarter, far short of the cash flow hemorrhage. So yeah, things aren't all that peachy!

0 Reflections: