GM Operating Income vs Net Income Analysis

GM Stock  USD 48.37  0.48  1.00%   
GM financial indicator trend analysis is much more than just examining General Motors latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether General Motors is a good investment. Please check the relationship between GM Operating Income and its Net Income accounts. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in General Motors. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

Operating Income vs Net Income

Operating Income vs Net Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of General Motors Operating Income account and Net Income. At this time, the significance of the direction appears to have no relationship.
The correlation between GM's Operating Income and Net Income is 0.04. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Net Income in the same time period over historical financial statements of General Motors, assuming nothing else is changed. The correlation between historical values of GM's Operating Income and Net Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of General Motors are associated (or correlated) with its Net Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Income has no effect on the direction of Operating Income i.e., GM's Operating Income and Net Income go up and down completely randomly.

Correlation Coefficient

0.04
Relationship DirectionPositive 
Relationship StrengthInsignificant

Operating Income

Operating Income is the amount of profit realized from General Motors operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of General Motors is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in General Motors financial statement analysis. It represents the amount of money remaining after all of General Motors operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.
Most indicators from GM's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into General Motors current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in General Motors. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
At this time, GM's Selling General Administrative is very stable compared to the past year. As of the 17th of February 2025, Sales General And Administrative To Revenue is likely to grow to 0.08, while Tax Provision is likely to drop about 2 B.
 2022 2023 2024 2025 (projected)
Gross Profit21.0B30.5B23.4B19.3B
Total Revenue156.7B171.8B187.4B128.3B

GM fundamental ratios Correlations

0.150.51-0.150.520.270.220.890.20.220.96-0.030.470.75-0.260.55-0.53-0.810.720.820.660.520.430.430.43-0.45
0.150.08-0.40.54-0.11-0.130.250.120.980.21-0.24-0.050.1-0.13-0.09-0.17-0.20.210.350.150.01-0.620.180.580.06
0.510.08-0.630.750.35-0.010.560.280.160.24-0.52-0.330.3-0.24-0.050.21-0.050.680.60.56-0.330.350.70.690.41
-0.15-0.4-0.63-0.820.180.01-0.520.32-0.470.010.90.71-0.170.390.45-0.16-0.3-0.73-0.58-0.70.64-0.23-0.88-0.9-0.58
0.520.540.75-0.820.020.090.70.10.630.38-0.68-0.320.33-0.4-0.15-0.03-0.110.780.770.69-0.240.180.790.970.31
0.27-0.110.350.180.02-0.340.020.71-0.170.180.240.190.50.130.020.2-0.21-0.030.2-0.080.150.04-0.07-0.14-0.16
0.22-0.13-0.010.010.09-0.340.28-0.34-0.050.24-0.140.06-0.06-0.280.14-0.12-0.120.280.190.260.090.320.180.09-0.04
0.890.250.56-0.520.70.020.28-0.150.340.82-0.430.10.72-0.450.25-0.44-0.550.940.920.910.180.530.750.68-0.22
0.20.120.280.320.10.71-0.34-0.150.070.150.440.410.10.230.260.1-0.31-0.29-0.04-0.410.35-0.32-0.37-0.08-0.14
0.220.980.16-0.470.63-0.17-0.050.340.070.26-0.3-0.060.09-0.16-0.06-0.19-0.240.310.40.250.0-0.550.280.670.09
0.960.210.240.010.380.180.240.820.150.260.120.640.74-0.230.62-0.66-0.90.580.740.550.70.320.260.29-0.64
-0.03-0.24-0.520.9-0.680.24-0.14-0.430.44-0.30.120.81-0.090.640.56-0.14-0.47-0.69-0.53-0.670.75-0.33-0.85-0.76-0.53
0.47-0.05-0.330.71-0.320.190.060.10.41-0.060.640.810.290.240.81-0.57-0.84-0.24-0.02-0.250.99-0.1-0.56-0.42-0.79
0.750.10.3-0.170.330.5-0.060.720.10.090.74-0.090.29-0.260.21-0.32-0.550.590.730.610.350.440.410.26-0.42
-0.26-0.13-0.240.39-0.40.13-0.28-0.450.23-0.16-0.230.640.24-0.260.030.43-0.06-0.51-0.52-0.490.19-0.32-0.45-0.390.08
0.55-0.09-0.050.45-0.150.020.140.250.26-0.060.620.560.810.210.03-0.67-0.8-0.010.08-0.090.80.02-0.35-0.21-0.53
-0.53-0.170.21-0.16-0.030.2-0.12-0.440.1-0.19-0.66-0.14-0.57-0.320.43-0.670.67-0.24-0.36-0.24-0.62-0.090.06-0.010.75
-0.81-0.2-0.05-0.3-0.11-0.21-0.12-0.55-0.31-0.24-0.9-0.47-0.84-0.55-0.06-0.80.67-0.25-0.42-0.21-0.87-0.020.1-0.020.71
0.720.210.68-0.730.78-0.030.280.94-0.290.310.58-0.69-0.240.59-0.51-0.01-0.24-0.250.910.97-0.160.580.930.790.05
0.820.350.6-0.580.770.20.190.92-0.040.40.74-0.53-0.020.73-0.520.08-0.36-0.420.910.870.060.460.770.72-0.16
0.660.150.56-0.70.69-0.080.260.91-0.410.250.55-0.67-0.250.61-0.49-0.09-0.24-0.210.970.87-0.160.630.920.720.0
0.520.01-0.330.64-0.240.150.090.180.350.00.70.750.990.350.190.8-0.62-0.87-0.160.06-0.16-0.07-0.49-0.34-0.81
0.43-0.620.35-0.230.180.040.320.53-0.32-0.550.32-0.33-0.10.44-0.320.02-0.09-0.020.580.460.63-0.070.540.14-0.08
0.430.180.7-0.880.79-0.070.180.75-0.370.280.26-0.85-0.560.41-0.45-0.350.060.10.930.770.92-0.490.540.820.33
0.430.580.69-0.90.97-0.140.090.68-0.080.670.29-0.76-0.420.26-0.39-0.21-0.01-0.020.790.720.72-0.340.140.820.4
-0.450.060.41-0.580.31-0.16-0.04-0.22-0.140.09-0.64-0.53-0.79-0.420.08-0.530.750.710.05-0.160.0-0.81-0.080.330.4
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GM Account Relationship Matchups

GM fundamental ratios Accounts

202020212022202320242025 (projected)
Total Assets235.2B244.7B264.0B273.1B279.8B195.9B
Other Current Liab19.5B17.4B21.9B24.6B70.6B74.1B
Total Stockholder Equity45.0B59.7B67.8B64.3B63.1B35.8B
Other Liab30.2B32.6B28.8B23.7B21.3B20.3B
Retained Earnings32.0B41.9B49.3B55.4B53.5B56.1B
Accounts Payable19.9B20.4B27.5B28.1B25.7B19.8B
Other Assets29.2B140.0B32.6B29.9B26.9B34.1B
Long Term Debt73.0B75.7B75.9B82.8B90.3B57.8B
Inventory10.2B13.0B15.4B16.5B14.6B13.1B
Other Current Assets7.4B6.4B6.8B7.2B54.0B56.7B
Total Liab185.5B178.9B191.8B204.8B214.2B172.0B
Intangible Assets3.3B3.2B3.0B2.9B2.7B2.5B
Property Plant Equipment38.8B37.6B41.1B77.9B70.2B42.8B
Cash20.0B20.1B19.2B18.9B19.9B15.7B
Short Term Investments9.0B8.6B12.2B7.6B7.3B7.5B
Common Stock Shares Outstanding1.4B1.5B1.5B1.4B1.1B1.5B
Short Long Term Debt Total110.9B109.4B114.7B122.6B130.7B79.2B
Total Current Liabilities79.9B74.4B91.2B94.4B96.3B80.4B
Property Plant And Equipment Net77.5B79.0B77.9B80.9B83.5B61.7B
Current Deferred Revenue3.1B2.5B2.5B2.8B2.5B4.6B
Net Debt90.9B89.3B95.5B103.8B(19.9B)(18.9B)
Non Current Assets Total154.3B162.6B163.6B171.4B171.2B135.0B
Non Currrent Assets Other39.1B47.7B50.0B54.4B61.9B65.0B
Cash And Short Term Investments29.0B28.7B31.3B26.5B27.1B28.8B
Net Receivables34.2B34.0B47.0B51.5B12.8B12.2B
Liabilities And Stockholders Equity235.2B244.7B264.0B273.1B279.8B219.0B
Non Current Liabilities Total105.6B104.5B100.6B110.3B117.9B95.9B
Other Stockholder Equity26.5B27.1B26.4B19.1B20.8B27.0B
Property Plant And Equipment Gross77.5B79.0B77.9B123.8B126.9B67.3B
Total Current Assets80.9B82.1B100.5B101.6B108.5B84.0B
Accumulated Other Comprehensive Income(13.5B)(9.3B)(7.9B)(10.2B)(11.3B)(11.8B)
Short Term Debt37.1B33.9B39.3B39.0B44.8B24.7B
Net Tangible Assets36.5B39.8B54.7B62.8B72.3B38.8B
Noncontrolling Interest In Consolidated Entity3.9B4.2B4.6B6.1B7.0B7.3B
Retained Earnings Total Equity22.3B26.9B32.0B41.9B48.2B50.6B

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Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in General Motors. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Is Automobile Manufacturers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GM. If investors know GM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.218
Dividend Share
0.48
Earnings Share
6.37
Revenue Per Share
168.109
Quarterly Revenue Growth
0.11
The market value of General Motors is measured differently than its book value, which is the value of GM that is recorded on the company's balance sheet. Investors also form their own opinion of GM's value that differs from its market value or its book value, called intrinsic value, which is GM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GM's market value can be influenced by many factors that don't directly affect GM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GM's value and its price as these two are different measures arrived at by different means. Investors typically determine if GM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.