An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

GE Aerospace, adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	163,045)	187,788)	198,874)	253,452)	266,048)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)
Total assets (adjusted)	163,045)	187,788)	198,874)	253,452)	266,048)
Adjustment to Total Debt
Total debt (as reported)	20,964)	32,350)	35,185)	75,066)	90,882)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	—)
Add: Operating lease liabilities (included in All other liabilities)	1,973)	2,393)	2,848)	2,973)	3,162)
Total debt (adjusted)	22,937)	34,743)	38,033)	78,039)	94,044)

Based on: 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), 10-K (reporting date: 2019-12-31).

^{1, 2} Equal to total present value of future operating lease payments.

GE Aerospace, Financial Data: Reported vs. Adjusted

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GE Aerospace, adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover¹
Reported total asset turnover	0.40	0.39	0.36	0.29	0.33
Adjusted total asset turnover	0.40	0.39	0.36	0.29	0.33
Debt to Equity²
Reported debt to equity	0.77	0.89	0.87	2.11	3.21
Adjusted debt to equity	0.84	0.96	0.94	2.20	3.32
Return on Assets³ (ROA)
Reported ROA	5.81%	0.12%	-3.28%	2.25%	-1.87%
Adjusted ROA	5.81%	0.12%	-3.28%	2.25%	-1.87%

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ See details »

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 improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	GE Aerospace adjusted debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	GE Aerospace adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

GE Aerospace, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales of equipment and services	64,565)	73,602)	71,090)	73,022)	87,487)
Total assets	163,045)	187,788)	198,874)	253,452)	266,048)
Activity Ratio
Total asset turnover¹	0.40	0.39	0.36	0.29	0.33
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Sales of equipment and services	64,565)	73,602)	71,090)	73,022)	87,487)
Adjusted total assets	163,045)	187,788)	198,874)	253,452)	266,048)
Activity Ratio
Adjusted total asset turnover²	0.40	0.39	0.36	0.29	0.33

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Sales of equipment and services ÷ Total assets
= 64,565 ÷ 163,045 = 0.40

² Adjusted total asset turnover = Sales of equipment and services ÷ Adjusted total assets
= 64,565 ÷ 163,045 = 0.40

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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 improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt	20,964)	32,350)	35,185)	75,066)	90,882)
Total GE shareholders’ equity	27,378)	36,366)	40,310)	35,552)	28,316)
Solvency Ratio
Debt to equity¹	0.77	0.89	0.87	2.11	3.21
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	22,937)	34,743)	38,033)	78,039)	94,044)
Total GE shareholders’ equity	27,378)	36,366)	40,310)	35,552)	28,316)
Solvency Ratio
Adjusted debt to equity²	0.84	0.96	0.94	2.20	3.32

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Debt to equity = Total debt ÷ Total GE shareholders’ equity
= 20,964 ÷ 27,378 = 0.77

² Adjusted debt to equity = Adjusted total debt ÷ Total GE shareholders’ equity
= 22,937 ÷ 27,378 = 0.84

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	GE Aerospace adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	9,481)	225)	(6,520)	5,704)	(4,979)
Total assets	163,045)	187,788)	198,874)	253,452)	266,048)
Profitability Ratio
ROA¹	5.81%	0.12%	-3.28%	2.25%	-1.87%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	9,481)	225)	(6,520)	5,704)	(4,979)
Adjusted total assets	163,045)	187,788)	198,874)	253,452)	266,048)
Profitability Ratio
Adjusted ROA²	5.81%	0.12%	-3.28%	2.25%	-1.87%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × 9,481 ÷ 163,045 = 5.81%

² Adjusted ROA = 100 × Net earnings (loss) attributable to the Company ÷ Adjusted total assets
= 100 × 9,481 ÷ 163,045 = 5.81%

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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 2021 to 2022 and from 2022 to 2023.

GE Aerospace (NYSE:GE)

Analysis of Operating Leases

Adjustments to Financial Statements for Operating Leases

GE Aerospace, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

GE Aerospace, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)