2023 Cash Flow Analysis for General Motors Co GM

General Motors Company, commonly referred to as General Motors, is a multinational corporation headquartered in Detroit, Michigan. Founded in 1908, the company designs, manufactures, and sells vehicles and vehicle parts, and provides financial services. General Motors is known for its wide range of automobile brands, including Chevrolet, Buick, GMC, and Cadillac.

The cash flow statement is a crucial financial document that outlines how much cash or cash equivalents a company has generated and utilized over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is essential for investors and analysts to assess how a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of General Motors in 2023. The width of the bars represents the cash flow amounts, with wider bars indicating larger sums.

We begin on the left with the company's cash position at the start of the year. During the year, the cash position slightly decreased, indicating that cash was used for financing and investing activities. The cash flow from operating activities was the largest source of cash, while the cash flow from investing activities was negative, suggesting more cash was spent on new investments than was received from selling assets. The cash flow from financing activities was also negative, indicating that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the changes in cash, we conclude on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of General Motors' cash flow, we have created a real-time counter that simulates the company's cash flow for 2023. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they occur, but a simulation based on the company's reported cash flow for 2023. The counter is intended to give you an idea of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2023, General Motors generated $20,930 million in cash from operating activities. The company spent $14,663 million on investing activities, resulting in a negative cash flow from this section. Additionally, $6,353 million was spent on financing activities. Consequently, the company's cash balance decreased by $31 million during the year.

The beginning cash balance for the year was $21,948 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. By the end of the year, the company's cash balance was $21,917 million.

General Motors' capital expenditures for the year amounted to $10,970 million, representing the cash spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations results in a free cash flow of $9,960 million in 2023. This figure represents the cash available to pay dividends, repurchase stock, or make other investments.

Summary

General Motors' cash flow in 2023 highlights several key aspects. The company maintained a strong cash flow from operating activities, which was the primary source of cash. However, the negative cash flow from investing activities indicates significant investments in property and equipment. Despite these investments, the company managed to maintain a stable cash position, ending the year with only a slight decrease in cash balance. The free cash flow of $9,960 million suggests that General Motors has substantial resources available for strategic initiatives such as dividends and stock repurchases.