1 . Fluidity ratio
The liquidity ratios measure the industry’s ability to meet its short-term debt commitments (Intermediate accounting- Kieso, Deb. E., L. J. Weygandt and To. D. Warfield). These proportions include current ratios, quick ratios, and cash rate. Current ratio: the current rate of GENERAL MOTORS has increased via 1 . up to 29 in 2012 to at least one. 30 in 2013. With a higher rate in 2013, it's better for GMC to meet its short-term requirement. Quick proportion: the quick ratio of GM has improved by 0. seventy nine in 2012 to 0. eighty-five in 2013. With a speedy ratio of less than one particular (0. 85), it indicates that GM has a bad sign because it cannot pay their current debts. (Quick Ratio- Ready Ratio) 2 . Activity ratios
The activity percentages measure just how well the organization uses its assets (Intermediate accounting- Kieso, D. E., J. M. Weygandt and T. Deb. Warfield). These types of ratios contain receivable turnover, inventory proceeds, and property turnover. Receivable turnover percentage: the receivable ratio of GM has grown from 14. 46 in 2012 to seventeen. 82 in 2013. This can be a significant maximize because this rate decreased coming from 14. 94 in 2011 to 14. 46 in 2012. It implies that GMC is getting better in collecting its accounts receivables. (Receivable ratio- All set Ratio) Inventory turnover ratios: the products on hand ratio of GM has slightly improved from on the lookout for. 53 news to on the lookout for. 61 in 2013. This ratio signifies a better overall performance of GM in managing inventory. three or more. Profitability percentages
The profitability ratios measure a business ability to generate profit from revenue (Profitability ratios- Ready Ratio). These ratios include charge of return on resources, and level of go back on prevalent stock. Rate of come back on assets: the return on property of GM has decreased from 4. 14% in 2012 to 3. 21% in 2013. It signifies that GM features $0. goal of net income for every dollar invested in 2013. Rate of return on equity: the return of equity of GM features decreased considerably from seventeen. 07% news to 12. 55% in 2013. some. Coverage ratios
Coverage proportions measure a...