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To analyze GM's financial standing for 2020, let's utilize various financial ratios across different categories:...

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Accounting

To analyze GM's financial standing for 2020, let's utilize various financial ratios across different categories:
Short-Term Solvency:
Current Ratio = Current Assets / Current Liabilities
Quick Ratio =(Current Assets - Inventory)/ Current Liabilities
Cash Ratio = Cash and Cash Equivalents / Current Liabilities
Long-Term Solvency:
Debt-to-Equity Ratio = Total Debt / Total Equity
Debt Ratio = Total Debt / Total Assets
Interest Coverage Ratio = EBIT / Interest Expense
Turnover:
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Accounts Receivable Turnover Ratio = Revenue / Average Accounts Receivable
Total Asset Turnover Ratio = Revenue / Average Total Assets
Profitability:
Gross Profit Margin =(Revenue - Cost of Goods Sold)/ Revenue (
Net Profit Margin = Net Income / Revenue
Return on Assets (ROA)= Net Income / Average Total Assets
Return on Equity (ROE)= Net Income / Average Shareholders' Equity?

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