NEW YORK (TheStreet) -- General Motors Co. (GM - Get Report) is facing new documents that show the automaker remained silent about fatal crashes tied to a defective ignition switch that is responsible for at least 13 deaths over the past 10 years, the New York Times reports.
"Now, G.M.'s response, as well as its replies to queries in other crashes," obtained by the Times from the National Highway Traffic Safety Administration, "casts doubt on how forthright the automaker was with regulators," the paper said this morning.
They [documents] provide details for the first time on the issue at the heart of a criminal investigation by the Justice Department: whether G.M., in its interaction with safety regulators, obscured a deadly defect that would also injure perhaps hundreds of people," the Times said.
- GM's revenue growth trails the industry average of 21.9%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 141.26% to $1,976.00 million when compared to the same quarter last year. In addition, GENERAL MOTORS CO has also vastly surpassed the industry average cash flow growth rate of 41.88%.
- The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
- GENERAL MOTORS CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GENERAL MOTORS CO reported lower earnings of $2.35 versus $2.93 in the prior year. This year, the market expects an improvement in earnings ($3.14 versus $2.35).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: GM Ratings Report
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