General Motors Company (GM) has reported a 2.68 percent fall in profit for the year ended Dec. 31, 2016. The company has earned $9,427 million, or $6 a share in the year, compared with $9,687 million, or $5.91 a share for the last year. On the other hand, adjusted net income for the year stood at $9,613 million, or $6.12 a share compared with $8,234 million or $5.02 a share, a year ago.
Revenue during the year grew 9.20 percent to $166,380 million from $152,356 million in the previous year. Gross margin for the year expanded 76 basis points over the previous year to 12.77 percent. Total expenses were 94.26 percent of annual revenues, down from 96.79 percent for the last year. This has led to an improvement of 252 basis points in operating margin to 5.74 percent.
Operating income for the year was $9,545 million, compared with $4,897 million in the previous year.
However, the adjusted EBITDA for the year stood at $12,530 million compared with $10,814 million in the prior year period. At the same time, adjusted EBITDA margin improved 43 basis points in the year to 7.53 percent from 7.10 percent in the last year period.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $6 to $6.50 and expects diluted earnings per share to be in the range of $6 to $6.50 on adjusted basis.
Operating cash flow improves significantly
General Motors Company has generated cash of $16,545 million from operating activities during the year, up 41.52 percent or $4,854 million, when compared with the last year. The company has spent $35,643 million cash to meet investing activities during the year as against cash outgo of $27,710 million in the last year.
Cash flow from financing activities was $17,139 million for the year, up 25.23 percent or $3,453 million, when compared with the last year.
Debt increases substantially
General Motors Company has witnessed an increase in total debt over the last one year. It stood at $84,628 million as on Dec. 31, 2016, up 34.09 percent or $21,517 million from $63,111 million on Dec. 31, 2015. Total debt was 38.17 percent of total assets as on Dec. 31, 2016, compared with 32.44 percent on Dec. 31, 2015. Debt to equity ratio was at 1.92 as on Dec. 31, 2016, up from 1.57 as on Dec. 31, 2015. Interest coverage ratio improved to 16.69 for the year from 11.05 for the same period last year.
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