GM’s debt-to-equity ratio of 0.36 looks pretty spiffy when compared to competitors like Ford (NYSE:F), which has a debt-to-equity ratio of 5.86, and Toyota (NYSE:TM), which has a debt-to-equity ratio of 1.12.
It’s also good to look at total debt and total cash on hand, which for GM is $14.79 billion in debt, and $32.61 billion in cash. Ford has $99.9 billion in total debt, and $23.79 billion in cash, while Toyota has $149.01 billion in total debt, and $38.86 billion in cash.
TOKYO — In the biggest sign yet of a strong recovery for Toyota, the Japanese automaker raised its forecast for full-year net profit to ¥780 billion Monday, shrugging off a sales decline in China brought about by a territorial spat between the two countries.
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Toyota was briefly the world’s largest automaker by sales in 2008, before the global financial crisis hit home. But after difficult years involving recalls and natural disasters, Toyota ceded that crown to General Motors. More recently, analysts worried that falling sales in China, the biggest auto market in the world, would weigh on Toyota’s bottom line.
But the numbers unveiled Monday, including the forecast for a $9.7 billion profit, suggest Toyota is making a comeback. Net profit more than tripled to ¥257.9 billion in the July-to-September quarter, compared with that of a year earlier, helped by strong sales in North America, where Toyota has been regaining market share. Toyota and its group companies sold 7.4 million vehicles in the first nine months of 2012, beating General Motors and Volkswagen.