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A comment on G.M. Strike: 50k Union Workers Walk Out Over Wages and Idled Plants. Parent comment

Re:G.M. Strike: 50k Union Workers Walk Out Over Wages and Id... by xibalba on Monday September 16, 2019 @10:52AM (#20984640)
> GM is very healthy and profitable

This seems to be the Crux of the issue. A quick look at the financial statements shows positive net income (though not consistently). The statement of cashflows, which is where companies go bankrupt or not, seems much less positive a story.

My accounting training is limited. Any HN'ers with accounting/finance background care to comment?

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Re:G.M. Strike: 50k Union Workers Walk Out Over Wages and Id... by mrfredward on Monday September 16, 2019 @11:45AM (#20985238)
I'm no accountant, but I think the bulk of the issues is that profits never last in the auto industry. GM trades at a price to earnings of 1/4 of what the market as a whole gets, because investors expect earnings to be negative as soon as a recession hits. GM has cash on hand of 3X its current profits to weather this storm.
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