Liquidity of General Motor Company due to their Internal and External factor

Lim, Wen Yi (2019): Liquidity of General Motor Company due to their Internal and External factor.

Abstract

GM is also known as General Motors Company is America famous high-end automobile producer. In September 2019 GM facing a strike by its employees about terms in a contract. To get employees back to work after more than a month on strike GM offers a 3 percent pay rise for two years of the four-year contract, and similar-sized bonuses for two years. They also hammered out a deal to make permanent temporary workers with three years on the job. This strike cause GM factories paralyzed across the country with losing $90 million a day and thousands of auto workers are draining their savings since they stop working on 16 September. This study aims to find out the internal and external factors affect liquidity in General Motor Company from 2014 to 2018. 5 years annual report of General Motors Company which starts from 2014 to 2018 is to calculate the relationship by using this formula (return on asset, current ratio, quick ratio, average-collection period, debt to income, operational ratio and operating margin) In this study, I have found out that strong corporate governance is applied in GM. However, it founds that quick ratio have a significant relationship with the liquidity of GM.

• Item Type: MPRA Paper
• Language: English
• Keywords: liquidity, risk, corporate governance
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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