As a giant in the automotive industry, many are curious to know General Motors’ net worth. It is the largest automotive manufacturing company in the US. From 1931 to 2008, it was the largest automaker globally, but Toyota later took that title. Also, in the Fortune 500 list of the largest corporations in the US, the company appears at number 22.
As of September 30, 2021, General Motor’s net worth was $60.3 billion. This is a substantial increase from its 2020 net worth of $49.6 billion. As you can see, a company’s net worth varies over time. And to understand the changes, you must know how to determine its net worth. That way, you can calculate the value at any point.
Knowing a company’s net worth makes it easy to understand its financial state. Therefore, if you are interested in it, you can make wise investment decisions that lead to profit.
The Growth of General Motors
William C. Durant formed the General Motors Company in 1908 together with Charles Stewart Mott. In 1916, it was renamed General Motors Corporation and expanded its business to Detroit. Later in 1918, it acquired Chevrolet Auto Company and Delco products.
The company grew, and by 1944, it was the largest automobile company in the US to produce motor vehicles. Its market share of all cars in the US only was 44%. Currently, the company has manufacturing plants located in 8 countries. Its leading brands are Buick, Chevrolet, Cadillac, and GMC.
Calculating General Motor’s Net Worth
Determining a company’s net worth is easy, but you need the correct data. And the formula for finding this value is applicable when calculating the value of any publicly-traded company. Therefore, look for the right source of information to get an accurate net worth value.
What is General Motors’ worth? General Motors is a publicly-traded company based in the US. Its net worth is, therefore, equal to the shareholder equity amount. The shareholder equity amount indicates what the shareholders would receive if their assets were liquidated and debts cleared.
Therefore, the company’s net worth is its current shareholder equity amount of $60.3 billion.
However, a company’s net worth keeps changing over time. A company may measure its value every week or yearly basis. After calculating the net worth, it may find an increase or decrease from the previous period. An increase in net worth indicates a company’s growth.
Conclusion
General Motors’ current net worth is approximately $60.3 billion. This indicates that the company is doing reasonably well in terms of finances. And as they are an automotive company, the future seems brighter. This is because new opportunities are on the horizon in the automotive industry.
