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GM 2018 10-K analysis
I read through GM’s 10-K for the year 2018 in order to estimate stock value. I took the document directly for the investors relations website: https://investor.gm.com/static-files/54070a3d-55d9-4a0c-9913-7ba9b4d366de
For the context, GM sells trucks, cars, auto parts, and financing services. It owns Buick, Cadillac, Chevrolet, and GMC brands.
Sales in number of vehicles worldwide fell in absolute and in market share in 2018. About 1% of market share worldwide is quite a significant decrease:
Discarding Europe, which is not GM’s market anymore, it is still a 0.6% market share loss. I am not sure how GM explains this, but I would say it is probably due to a lack of quality vehicle offering in key SUV segments such as compact SUV.
I was frustrated that the document doesn’t do any segment analysis, or brand analysis. What are Cadillac sales and revenue? Do we even care about it or is Chevrolet making most of the sales anyways? That is unclear to me.
Sales and revenue increase year on year from $145,588M to $147,049M, but income decreased, from $9,269M to $8,075M. That is a significant decrease.
Assets increased from $212,482M to $227,339M.
I suspect the following adjustments to come up with the EBIT-adjusted is actually pure numbers manipulation. For that…