personnel, and utility costs that are associated with storing merchandise.ConclusionsThe General Motors Corporation has used debt financing rather than new stock issuances for the financing of the organization. GM also has a low return on sales and needs to have a high sales volume to ensure that it is able to meet its interest payments on that debt. The firm has been able to keep a very high return on equity because it does not have a great deal of outstanding equity. General Motors is also efficiently utilizing its inventory because of the performance of the inventory turnover and days of inventory ratios. General Motors have improved their financial position over the last two years after a dip in 1998 and look poised to continue the strong results into the future. GM has increased sales over the past three years and has held its profit margin over the past two years. However, global and US market share has been decreasing over the past five years to 15% and 27% respectively, in 2000. President Rick Wagoner has introduced four key initives in 2000, which GM hopes to improve upon. They are: act as one company, embrace stretch targets, move with a sense of urgency, and enhance our product and customer focus.(GM 2000 4) Hopefully, General Motors will be able to improve upon its financial success with the introduction of these key actions. ...
