What Is GM’s Credit Rating and Financial Health?

Various ratings offer insights into a company’s stability, ability to manage financial obligations, and overall operational performance. For General Motors (GM), these ratings help stakeholders understand its financial health and potential for future growth.

GM’s Credit Ratings

Credit ratings assess a company’s capacity to meet financial obligations. Major agencies like Standard & Poor’s (S&P), Moody’s, and Fitch Ratings assign letter-grade ratings indicating creditworthiness. These ratings influence a company’s borrowing costs and investor confidence, with higher ratings generally meaning lower costs.

General Motors holds investment-grade credit ratings from all three major agencies. S&P Global Ratings affirmed GM at a “BBB” with a stable outlook as of January 17, 2025. This investment-grade rating signifies a good capacity to meet financial commitments, though it may be more susceptible to adverse economic conditions than higher-rated entities.

Moody’s Investors Service upgraded GM’s senior unsecured notes to “Baa2” from “Baa3” with a stable outlook on March 31, 2023. The “Baa2” rating indicates investment grade and moderate credit risk, reflecting GM’s competitive product portfolio and disciplined capital allocation.

Fitch Ratings raised GM’s corporate credit rating to “BBB-” with a stable outlook, confirming investment-grade status with all major agencies. The “BBB-” rating is the lowest investment-grade, indicating low default risk but potential vulnerability to adverse conditions. DBRS Morningstar also confirmed GM’s Issuer Rating and Revolving Credit Facility rating at “BBB (high)” with stable trends on June 20, 2024.

GM’s Financial Health Overview

Beyond formal credit ratings, several fundamental financial indicators paint a comprehensive picture of GM’s financial health. These metrics include revenue trends, profitability, cash flow generation, liquidity, and debt levels. Analyzing these elements helps investors understand the company’s operational efficiency and its ability to sustain itself over time.

General Motors has demonstrated consistent revenue growth in recent years. Its annual revenue for 2024 reached $187.442 billion, marking a 9.08% increase from the previous year. The company’s revenue for the twelve months ending June 30, 2025, was reported at $187.601 billion, showing a 5.34% year-over-year increase. This growth is partly driven by strong sales in North America, particularly for pickups and full-size SUVs, and increasing traction in the electric vehicle (EV) segment.

Profitability metrics indicate a robust performance, though with some fluctuations. The gross profit margin improved from 10.25% in 2020 to 11.97% in 2024, reflecting enhanced efficiency in production. Operating income demonstrated growth from $6.6 billion in 2020 to $12.8 billion in 2024, indicating improved operational efficiency. While net income peaked at nearly $9.9 billion in 2021, it was $5.963 billion in 2024, following a strong period through 2023.

Cash flow generation remains a strength for General Motors. The company generated an average of $18 billion in net cash from operations over the past three years, reaching $20.9 billion in fiscal year 2023 Q4. Free cash flow, which is the cash available after capital expenditures, averaged approximately $9.6 billion between 2021 and 2023, reaching $10 billion in the fourth quarter of 2023. These figures suggest a strong ability to fund operations and investments internally.

Regarding liquidity, GM’s financial position appears solid. As of 2024, the company maintained a current ratio of 1.05, meaning it possessed $1.05 in current assets for every $1 of current liabilities. Its short-term assets, valued at $114.3 billion, exceeded its short-term liabilities of $93.8 billion, indicating a healthy capacity to cover immediate obligations. Total debt was reported at $132.67 billion as of March 2025, with long-term debt for 2024 standing at $90.3 billion, representing an increase from previous years.

GM’s ESG and Other Investor-Relevant Ratings

Environmental, Social, and Governance (ESG) ratings have become increasingly significant for investors seeking to assess a company’s long-term sustainability and risk profile. These ratings evaluate a company’s performance across various non-financial factors. ESG criteria consider a company’s environmental impact, its labor practices and community engagement, and the structure of its leadership and oversight.

General Motors has received ratings from prominent ESG providers. MSCI, a leading provider of ESG research, assigned GM an ESG score of 66 out of 100, corresponding to a “BBB” rating. This rating indicates strong performance in governance, but notes areas for improvement in environmental sustainability and labor practices. The company’s focus on electrification and sustainable transportation solutions, including investments in electric vehicles (EVs) and renewable energy-powered manufacturing plants, positively impacts its environmental standing.

Sustainalytics, another key ESG rating firm, assigned General Motors an ESG Risk Rating of 27.6, categorizing it as “Medium Risk.” S&P Global also provides an ESG score, with GM receiving a score of 48. Despite efforts, concerns remain regarding GM’s continued reliance on gasoline-powered vehicles in certain markets and the environmental impact associated with raw material extraction for EV batteries within its supply chain. These ratings collectively highlight the company’s ongoing commitment to, and challenges in, achieving comprehensive sustainability objectives.