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1. How is the company doing in each of the categories from above? 2. In which ar

ID: 2450490 • Letter: 1

Question

1.   How is the company doing in each of the categories from above?

2.       In which areas is the company doing particularly well or improving significantly?

3.       In which areas could the company improve? Be specific about what they could do.

4.       How is the company doing in relation to the industry averages?

5.       What is your overall assessment of the company’s operations and outlook?

GM (General Motor Co.) 2014 2013 2012 Liquidity Current Assets (thousands) 83,670 81,501 69,996 Current Liabilities (thousands) 65,701 62,412 53,992 Current Ratio 1.27 1.31 1.30 Comment: The current ratio increased from 2012 to 2013, then decreased from 2013 to 2014. Current Assests and liabilities were both increased in the three years. This ratio is pretty much about the same in three years. Total Quick Assests (thousands) 55,120 53,053 42,535 Current Liabilities (thousands) 65,701 62,412 53,992 Quick Ratio 0.84 0.85 0.79 Comment: The quick ratio improved from 2012 to 2013 significantly, then decreased from 2013 to 2014. Total quick assests were increased large amount from 2012 to 2013, also the liabilities. But then slow down from 2013 to 2014. Total Cash Assets (thousands) 29,514 30,240 28,096 Current Liabilities (thousands) 65,701 62,412 53,992 Cash Ratio 0.45 0.48 0.52 Comment: The cash ratio deteriorated in the three years. The cash assests were about the same in three years, but the liabilities amount were larger in three years.

Explanation / Answer

1. How is the company doing in each of the categories from above? 2. In which ar