Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

GE Aerospace, balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Goodwill	8,538)	13,385)	25,798)	26,182)	25,524)
Customer-related	3,850)	6,201)	6,063)	6,400)	6,862)
Patents and technology	2,744)	5,924)	8,432)	8,592)	8,191)
Capitalized software	1,296)	2,356)	5,288)	5,764)	5,826)
Trademarks & other	70)	276)	419)	449)	778)
Intangible assets subject to amortization, gross carrying amount	7,960)	14,757)	20,202)	21,205)	21,657)
Accumulated amortization	(3,703)	(9,062)	(12,639)	(11,923)	(11,883)
Intangible assets subject to amortization, net	4,257)	5,695)	7,563)	9,282)	9,774)
Indefinite-lived intangible assets	—)	—)	62)	48)	—)
Other intangible assets, net	4,257)	5,695)	7,625)	9,330)	9,774)
Goodwill and other intangible assets	12,795)	19,080)	33,423)	35,512)	35,298)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	GE Aerospace goodwill decreased from 2022 to 2023 and from 2023 to 2024.
Other intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	GE Aerospace other intangible assets, net decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	GE Aerospace goodwill and other intangible assets decreased from 2022 to 2023 and from 2023 to 2024.

GE Aerospace, adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	123,140)	163,045)	187,788)	198,874)	253,452)
Less: Goodwill	8,538)	13,385)	25,798)	26,182)	25,524)
Total assets (adjusted)	114,602)	149,660)	161,990)	172,692)	227,928)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	19,342)	27,378)	36,366)	40,310)	35,552)
Less: Goodwill	8,538)	13,385)	25,798)	26,182)	25,524)
Shareholders’ equity (adjusted)	10,804)	13,993)	10,568)	14,128)	10,028)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

GE Aerospace, Financial Data: Reported vs. Adjusted

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GE Aerospace, adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total Asset Turnover
Reported total asset turnover	0.29	0.40	0.39	0.36	0.29
Adjusted total asset turnover	0.31	0.43	0.45	0.41	0.32
Financial Leverage
Reported financial leverage	6.37	5.96	5.16	4.93	7.13
Adjusted financial leverage	10.61	10.70	15.33	12.22	22.73
Return on Equity (ROE)
Reported ROE	33.90%	34.63%	0.62%	-16.17%	16.04%
Adjusted ROE	60.68%	67.76%	2.13%	-46.15%	56.88%
Return on Assets (ROA)
Reported ROA	5.32%	5.81%	0.12%	-3.28%	2.25%
Adjusted ROA	5.72%	6.34%	0.14%	-3.78%	2.50%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	GE Aerospace adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	GE Aerospace adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	GE Aerospace adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	GE Aerospace adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

GE Aerospace, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Sales of equipment and services	35,121)	64,565)	73,602)	71,090)	73,022)
Total assets	123,140)	163,045)	187,788)	198,874)	253,452)
Activity Ratio
Total asset turnover¹	0.29	0.40	0.39	0.36	0.29
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales of equipment and services	35,121)	64,565)	73,602)	71,090)	73,022)
Adjusted total assets	114,602)	149,660)	161,990)	172,692)	227,928)
Activity Ratio
Adjusted total asset turnover²	0.31	0.43	0.45	0.41	0.32

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Sales of equipment and services ÷ Total assets
= 35,121 ÷ 123,140 = 0.29

² Adjusted total asset turnover = Sales of equipment and services ÷ Adjusted total assets
= 35,121 ÷ 114,602 = 0.31

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	GE Aerospace adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	123,140)	163,045)	187,788)	198,874)	253,452)
Shareholders’ equity	19,342)	27,378)	36,366)	40,310)	35,552)
Solvency Ratio
Financial leverage¹	6.37	5.96	5.16	4.93	7.13
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	114,602)	149,660)	161,990)	172,692)	227,928)
Adjusted shareholders’ equity	10,804)	13,993)	10,568)	14,128)	10,028)
Solvency Ratio
Adjusted financial leverage²	10.61	10.70	15.33	12.22	22.73

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 123,140 ÷ 19,342 = 6.37

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 114,602 ÷ 10,804 = 10.61

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	GE Aerospace adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	6,556)	9,481)	225)	(6,520)	5,704)
Shareholders’ equity	19,342)	27,378)	36,366)	40,310)	35,552)
Profitability Ratio
ROE¹	33.90%	34.63%	0.62%	-16.17%	16.04%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	6,556)	9,481)	225)	(6,520)	5,704)
Adjusted shareholders’ equity	10,804)	13,993)	10,568)	14,128)	10,028)
Profitability Ratio
Adjusted ROE²	60.68%	67.76%	2.13%	-46.15%	56.88%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net earnings (loss) attributable to the Company ÷ Shareholders’ equity
= 100 × 6,556 ÷ 19,342 = 33.90%

² Adjusted ROE = 100 × Net earnings (loss) attributable to the Company ÷ Adjusted shareholders’ equity
= 100 × 6,556 ÷ 10,804 = 60.68%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	GE Aerospace adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	6,556)	9,481)	225)	(6,520)	5,704)
Total assets	123,140)	163,045)	187,788)	198,874)	253,452)
Profitability Ratio
ROA¹	5.32%	5.81%	0.12%	-3.28%	2.25%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	6,556)	9,481)	225)	(6,520)	5,704)
Adjusted total assets	114,602)	149,660)	161,990)	172,692)	227,928)
Profitability Ratio
Adjusted ROA²	5.72%	6.34%	0.14%	-3.78%	2.50%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × 6,556 ÷ 123,140 = 5.32%

² Adjusted ROA = 100 × Net earnings (loss) attributable to the Company ÷ Adjusted total assets
= 100 × 6,556 ÷ 114,602 = 5.72%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	GE Aerospace adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

GE Aerospace (NYSE:GE)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

GE Aerospace, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

GE Aerospace, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)