GE Aerospace (NYSE:GE)

Total Asset Turnover

Both reported and adjusted total asset turnover ratios show an overall upward trend from 2020 through 2023, increasing from approximately 0.29 to 0.40 (reported) and from 0.30 to 0.42 (adjusted), indicating improved efficiency in asset utilization over these years. However, a decline is observed in 2024, returning close to the 2020 starting levels (0.29 reported, 0.30 adjusted), suggesting a potential decrease in asset turnover efficiency in the latest year.

Current Ratio

The current ratio exhibits a gradual decline across the period for both reported and adjusted figures. Reported current ratio drops from 1.58 in 2020 to 1.09 in 2024, while the adjusted current ratio declines from 1.69 to 1.13 in the same timeframe. This trend indicates a reduction in short-term liquidity and a possible weakening of the company's ability to cover current liabilities with current assets.

Debt to Equity Ratio

There is a significant reduction in reported debt to equity ratio from 2.11 in 2020 to a low of 0.77 in 2023, followed by an increase to 1.00 in 2024. The adjusted ratio follows a similar pattern, falling from 2.46 in 2020 to around 1.01 in 2023 before rising to 1.40 in 2024. Overall, the company reduced leverage substantially in the initial years but increased borrowing levels moderately in the latest year.

Debt to Capital Ratio

The debt to capital ratio demonstrates a declining trend through 2023, with reported and adjusted values moving from roughly 0.68-0.71 in 2020 down to 0.43-0.50 in 2023. This is followed by an upturn in 2024 to 0.50 (reported) and 0.58 (adjusted), reflecting a reduction in the proportion of debt financing initially, which slightly reverses at the end of the period.

Financial Leverage

Financial leverage ratios decrease significantly from 7.13 (reported) and 7.63 (adjusted) in 2020 to lower levels around 5.16-5.39 in 2022, indicating reduced reliance on debt financing relative to equity. Nonetheless, leverage increases again in 2023 and 2024, with adjusted leverage reaching 8.00, the highest level over the period, suggesting growing use of debt to support asset base or operations in the recent years.

Net Profit Margin

Reported net profit margin displays volatility with a major loss in 2021 (-9.17%), a marginal profit in 2022 (0.31%), followed by strong improvements in 2023 (14.68%) and 2024 (18.67%). Adjusted margins follow a different pattern, with positive margin in 2020 (7.39%), a peak in 2021 (11.14%), a decline to negative in 2022 (-3.26%), and a sharp rise to 25.63% in 2024. These fluctuations indicate periods of operational challenges and recovery, ending with strong profitability in the most recent years.

Return on Equity (ROE)

Reported ROE shows significant instability, turning negative in 2021 (-16.17%), barely positive in 2022 (0.62%), then sharply increasing to above 33% the last two years. Adjusted ROE is positive in 2020 and 2021, dips negative in 2022 (-7.32%), but exhibits a robust recovery reaching an exceptionally high 61.95% in 2024. This suggests varying profitability outcomes affecting shareholder returns, with considerable improvement after a troubled mid-period.

Return on Assets (ROA)

Reported ROA closely mirrors the profit margin and turnover trends: negative in 2021 (-3.28%), near zero in 2022 (0.12%), then improving to around 5-6% in 2023 and 2024. Adjusted ROA fluctuates more, becoming positive in 2021 (4.20%), dropping negative in 2022 (-1.36%), and increasing steadily to 7.75% in 2024. Overall, asset profitability recovers significantly in the latter years after a period of weakness.

Sales of Equipment and Services

The sales figures show a fluctuating trend from 2020 to 2024. After a slight decrease from 73,022 million USD in 2020 to 71,090 million USD in 2021, sales increased again to 73,602 million USD in 2022. However, a notable decline occurred in the following years, dropping to 64,565 million USD in 2023 and a significant fall to 35,121 million USD in 2024.

Total Assets

Total assets consistently decreased over the entire period from 253,452 million USD in 2020 to 123,140 million USD in 2024. The decrease was particularly pronounced from 2022 onward, with a reduction of around 70,000 million USD by 2024, indicating potential asset divestiture, depreciation, or impairment.

Reported Total Asset Turnover

This ratio exhibits an initial upward trend, increasing from 0.29 in 2020 to a peak of 0.40 in 2023, suggesting improved efficiency in using assets to generate sales. However, the ratio then declines back to 0.29 in 2024, reflecting a reduction in efficiency probably linked to the substantial drop in sales that year.

Adjusted Sales of Equipment and Services

The adjusted sales values closely mirror the reported sales figures, confirming the overall sales trend: a rise from 73,538 million USD in 2020 to 73,736 million USD in 2022, then a decline to 64,504 million USD in 2023 and finally a sharp drop to 35,098 million USD in 2024. The consistency between reported and adjusted values suggests limited impact from adjustments on the sales data.

Adjusted Total Assets

Adjusted total assets show a clear declining pattern, moving from 242,535 million USD in 2020 down to 116,135 million USD in 2024. This decline is slightly more moderate compared to the reported total assets, but still significant, suggesting adjustments may reflect different valuation or accounting treatments, without changing the overall downward trend.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio also improves initially, rising from 0.30 in 2020 to 0.42 in 2022 and 2023, indicating increased asset efficiency. Nonetheless, it drops to 0.30 in 2024, paralleling the decline in sales and adjusted assets in the final year. This suggests that despite reduced asset base, efficiency gains were not sustained.

Overall Analysis

The data reveal a clear long-term reduction in asset base coupled with fluctuating sales performance that deteriorates sharply by the last reporting year. Asset turnover ratios initially indicate improved operational efficiency which could be the result of optimization or restructuring efforts. However, the substantial sales decline in the final year drives a notable efficiency drop, raising concerns about sustainability. The consistency between reported and adjusted figures suggests reliability in the financial measurements with regard to sales and assets.

The financial data over the five-year period exhibits a downward trend in both current assets and current liabilities. Current assets decreased from US$ 88,412 million in 2020 to US$ 37,635 million in 2024, indicating a substantial reduction in liquid and short-term resources. Similarly, current liabilities declined from US$ 56,069 million to US$ 34,392 million over the same period, reflecting a decrease in short-term obligations.

The reported current ratio, which measures liquidity by comparing current assets to current liabilities, shows a steady decline from 1.58 in 2020 to 1.09 in 2024. This decrease suggests a weakening liquidity position, denoting less coverage of current liabilities by current assets over time.

When considering adjusted figures, which may account for certain refinements or corrections, adjusted current assets also follow a similar downward trajectory from US$ 89,576 million in 2020 to US$ 37,741 million in 2024. Adjusted current liabilities decreased from US$ 53,115 million to US$ 33,441 million during the same timeframe.

The adjusted current ratio mirrors the pattern observed in the reported current ratio, declining from 1.69 in 2020 to 1.13 in 2024. Despite a slight stabilization seen between 2022 and 2023 (remaining at 1.25), the continuing breach toward lower ratios by 2024 suggests a gradually weakening short-term financial health.

Overall, the data points to a contraction in working capital components with current assets and liabilities both decreasing. The gradual decline in liquidity ratios highlights a potential increase in risk concerning the company's ability to meet short-term obligations. The narrowing of the adjusted current ratio compared to the reported ratio reinforces this view, indicating that even after adjustments, liquidity levels have diminished. This trend could warrant attention to the company’s management of liquid resources and short-term liabilities going forward.

The financial data reveals several notable trends concerning the company's debt and equity positions over the five-year period.

Total Debt

Total debt showed a significant declining trend, decreasing from US$75,066 million at the end of 2020 to US$19,273 million by the end of 2024. This reflects a substantial reduction in liabilities, particularly pronounced between 2020 and 2021, with the downward trend continuing steadily through 2024.

Shareholders’ Equity

Shareholders’ equity experienced initial growth from US$35,552 million in 2020 to US$40,310 million in 2021, followed by declines in subsequent years to US$19,342 million by 2024. This pattern indicates a recovery or capital increase early in the period, then weakening or erosion of equity in the later years.

Reported Debt to Equity Ratio

The reported debt to equity ratio dropped sharply from 2.11 in 2020 to 0.87 in 2021, with subsequent values fluctuating moderately between 0.77 and 1.00. This indicates an improvement in the company's leverage position after 2020, becoming less reliant on debt relative to equity, although a moderate increase occurred by the end of 2024.

Adjusted Total Debt

Adjusted total debt declined in a similar manner to reported total debt, decreasing from US$78,039 million in 2020 to US$20,378 million in 2024. This confirms the overall debt reduction trend, taking into account any adjustments made for more accurate reflection of liabilities.

Adjusted Total Equity

Adjusted total equity rose from US$31,768 million in 2020 to a peak of US$37,546 million in 2021, before steadily falling to US$14,523 million in 2024. This decline in adjusted equity after the initial increase suggests a deterioration in the company's net asset base when considering adjusted figures.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio improved significantly from 2.46 in 2020 to around 1.0 in the period 2021-2023, indicating better leverage control. However, the ratio increased to 1.40 by the end of 2024, pointing to a relative rise in debt compared to equity consistent with the declining adjusted equity figures.

In summary, the data indicates a strong deleveraging effort through debt reduction between 2020 and 2021, accompanied by an initial equity strengthening. However, equity levels declined notably after 2021, causing the debt-to-equity ratios to stabilize at more moderate levels, and then slightly worsen by 2024. The adjusted measures generally mirror the reported trends but highlight a sharper decrease in equity and a related increase in leverage towards the end of the period. This suggests that while debt reduction has been a positive development, the erosion of equity may pose concerns for the company's financial stability going forward.

The financial data reveals several noteworthy trends over the five-year period. The total debt exhibits a significant and consistent reduction, declining from $75,066 million at the end of 2020 to $19,273 million by the end of 2024. This trend indicates a substantial deleveraging effort. Similarly, total capital has decreased steadily from $110,618 million in 2020 to $38,615 million in 2024, reflecting a reduction in the overall capital base.

The reported debt to capital ratio shows an initial improvement, falling from 0.68 in 2020 to 0.43 in 2023, before slightly increasing to 0.50 in 2024. This pattern suggests that despite the reductions in both debt and capital, the company has generally lowered its leverage ratio up to 2023, with a modest reversal in the last year.

Analyzing the adjusted figures, a similar downward trend in adjusted total debt is observed, moving from $78,039 million in 2020 to $20,378 million in 2024. Adjusted total capital also declines from $109,807 million to $34,901 million in the same timeframe, highlighting a consistent contraction in adjusted capital metrics.

The adjusted debt to capital ratio decreases from 0.71 in 2020 to 0.50 in 2023, mirroring the reported ratio's behavior, but then rises more noticeably to 0.58 by 2024. This increase suggests a relative increase in adjusted leverage in the most recent period after multiple years of improvements.

Overall, the data suggests a strategic focus on debt reduction alongside a decreasing capital base, which has generally improved leverage ratios until the final year reviewed. The slight uptick in debt to capital ratios in 2024 may warrant further investigation to understand the underlying factors driving this change.

Over the observed five-year period, there is a clear downward trend in the total assets of the company, declining from US$253,452 million at the end of 2020 to US$123,140 million by the end of 2024. This consistent reduction indicates a significant decrease in asset base by more than 50%, which could reflect asset disposals, restructuring, or other operational changes.

Similarly, shareholders’ equity shows a decreasing pattern, starting at US$35,552 million in 2020, peaking slightly at US$40,310 million in 2021, and then declining steadily to US$19,342 million in 2024. This reduction represents a substantial erosion of equity, suggesting either losses, dividend distributions exceeding earnings, or other equity-impacting activities.

The reported financial leverage ratio decreases markedly from 7.13 in 2020 to 4.93 in 2021, indicating reduced reliance on debt relative to equity initially. However, after 2021, leverage begins to rise progressively, reaching 6.37 in 2024. This fluctuation suggests an initial deleveraging followed by increased financial risk as leverage intensifies toward the end of the period.

Adjusted total assets mirror the trend of total assets, declining from US$242,535 million in 2020 to US$116,135 million in 2024. This consistent decline corroborates the overall asset reduction observed.

Adjusted total equity also declines significantly, from US$31,768 million in 2020 to US$14,523 million in 2024. This indicates a deterioration in adjusted equity base at nearly the same pace as total equity, reinforcing concerns about the company's capital position.

The adjusted financial leverage ratio follows a trend similar to the reported leverage but shows a sharper increase in the later years. Starting at 7.63 in 2020, the ratio drops to 5.04 in 2021, then climbs steadily to reach 8 in 2024. This elevated final figure points to heightened financial risk from a leverage perspective, suggesting that the adjusted equity base is shrinking faster relative to adjusted assets or liabilities.

In summary, the data indicate a period of contraction in both assets and equity, coupled with increasing financial leverage after an initial decrease. This overall pattern may signify strategic shifts, asset divestitures, or financial stress, resulting in greater financial risk due to higher leverage ratios by the end of the period.

The analysis of the financial data over the five-year period reveals several notable trends and fluctuations in profitability and sales performance.

Net Earnings (Loss) Attributable to the Company

The net earnings exhibit significant volatility. The company reported a strong profit of US$5,704 million in 2020, followed by a substantial loss of US$6,520 million in 2021. Earnings recovered slightly in 2022 with a modest profit of US$225 million and then surged dramatically to US$9,481 million in 2023 before declining to US$6,556 million in 2024. This pattern indicates periods of financial instability with a notable recovery starting in 2022 and peaking in 2023.

Sales of Equipment and Services

Sales figures show a gradual decline over the period, starting from US$73,022 million in 2020 and decreasing to US$35,121 million by 2024. The sales volume remained relatively stable from 2020 to 2022 but dropped sharply from 2022 onwards. The downward trend suggests challenges in the core business or a strategic shift impacting revenue generation.

Reported Net Profit Margin

The reported net profit margin mirrors the fluctuations in net earnings. It was positive at 7.81% in 2020, turned negative to -9.17% in 2021, and hovered near zero at 0.31% in 2022. A strong recovery ensued with margins rising to 14.68% in 2023 and further improving to 18.67% in 2024. This trend underscores improved profitability despite declining sales, indicating better cost control or higher-margin sales.

Adjusted Net Earnings (Loss)

The adjusted net earnings follow a somewhat different trajectory from reported net earnings. Starting at US$5,437 million in 2020, there was a significant increase to US$7,950 million in 2021, despite the reported loss in that year. However, 2022 saw a sharp adjusted loss of US$2,405 million, followed by a recovery to US$5,689 million in 2023 and US$8,997 million in 2024. The adjustments suggest that certain non-recurring or extraordinary items had a considerable impact on reported results, particularly in 2021 and 2022.

Adjusted Sales of Equipment and Services

Adjusted sales closely track the reported sales figures but are slightly higher in each year. The adjusted sales decline from US$73,538 million in 2020 to US$35,098 million in 2024, reinforcing the observed downward trend in core revenue.

Adjusted Net Profit Margin

This margin improves over the period with some volatility. From 7.39% in 2020 it increases to 11.14% in 2021, then falls to -3.26% in 2022. It recovers to 8.82% in 2023 and rises substantially to 25.63% in 2024. The sharp increase in adjusted margin by the end of the period suggests enhanced earnings quality and profitability on an adjusted basis, reflecting operational improvements or favorable adjustments.

In summary, the data reflects a company experiencing significant earnings volatility and declining sales over the five years. Despite the reduction in sales, profitability, particularly on an adjusted basis, shows improvement in recent years with margins reaching strong levels. The contrast between reported and adjusted results highlights the impact of non-recurring factors on financial performance. Overall, the financial trends suggest an organization navigating through challenges while improving profit efficiency and controlling costs.

The analysis of the financial data over the five-year period reveals notable volatility and significant fluctuations in profitability and equity levels.

Net Earnings (Loss) Attributable to the Company

The net earnings exhibit a pronounced degree of volatility. Starting with a substantial profit of US$5,704 million in 2020, the company experienced a sharp loss of US$6,520 million in 2021. This was followed by a recovery to a modest profit of US$225 million in 2022. Subsequently, there was a marked improvement with profits rising sharply to US$9,481 million in 2023, before decreasing to US$6,556 million in 2024. These swings suggest a highly fluctuating operational or market environment impacting profitability.

Shareholders’ Equity

Shareholders' equity reached its peak in 2021 at US$40,310 million, representing growth from US$35,552 million in 2020. However, after 2021, equity declined consistently over the period, falling to US$19,342 million by 2024. This steady decrease indicates potential impairment, asset write-downs, dividend distributions, or other capital adjustments reducing the equity base.

Reported Return on Equity (ROE)

The reported ROE mirrors the earnings volatility. It declined sharply into negative territory in 2021 (-16.17%) before recovering slightly to 0.62% in 2022. Subsequently, it surged to strong positive returns of 34.63% in 2023 and 33.9% in 2024. The ROE pattern underscores significant swings in profitability relative to equity, reflecting operational challenges followed by recovery phases.

Adjusted Net Earnings (Loss)

Adjusted net earnings, which possibly exclude certain one-time or non-recurring items, show a different trend from the reported net earnings. After a slight decline from US$5,437 million in 2020 to US$7,950 million in 2021, adjusted earnings drastically turned negative at -US$2,405 million in 2022. This anomalous year suggests some extraordinary losses or adjustments impacting the adjusted figures. Recovery followed in 2023 with US$5,689 million and further growth to US$8,997 million in 2024, indicating an improving operational performance under the adjusted basis.

Adjusted Total Equity

Adjusted equity also followed a downward trajectory after peaking in 2021 at US$37,546 million. It declined progressively through to US$14,523 million in 2024, consistent with the pattern observed in shareholders’ equity. The reduction may reflect asset adjustments or provisions accounted for in the adjusted figures.

Adjusted Return on Equity

The adjusted ROE presents more volatile movements compared to the reported ROE. It increased from 17.11% in 2020 to 21.17% in 2021, dropped to a negative -7.32% in 2022, and then rebounded to 25.16% in 2023. The most striking change is in 2024 with a sharp rise to 61.95%, indicating very efficient use of equity relative to adjusted earnings. This spike may be influenced by the significant drop in adjusted equity during the period, suggesting a higher earnings yield on a smaller equity base.

Overall, the data shows a period marked by financial instability and recovery cycles, with equity levels diminishing and profitability experiencing significant fluctuations. The adjusted metrics highlight the impact of extraordinary items on reported figures and underscore a trend toward better operational profitability and return efficiency in the latter years, especially by 2024.

The analysis of the financial data reveals several notable trends over the five-year period from 2020 to 2024.

Net Earnings (Loss) Attributable to the Company

The net earnings exhibit significant volatility. In 2020, earnings were strongly positive at 5,704 million USD, followed by a sharp loss of 6,520 million USD in 2021. The company then returned to a modest profit of 225 million USD in 2022, succeeded by a substantial increase to 9,481 million USD in 2023, and a decline to 6,556 million USD in 2024. This pattern indicates a disrupted earnings performance with sharp declines and recoveries.

Total Assets

Total assets show a consistent and pronounced downward trend throughout the period. Starting at 253,452 million USD in 2020, assets reduce steadily each year to reach 123,140 million USD by 2024, reflecting a nearly 51% decrease over five years. This substantial contraction may suggest divestitures, asset sales, or other balance sheet restructuring activities.

Reported Return on Assets (ROA)

The reported ROA mirrors the earnings trends with volatility and recovery. It declined from a positive 2.25% in 2020 to a negative -3.28% in 2021, then improved to nearly break-even at 0.12% in 2022. A marked improvement occurs in 2023 reaching 5.81%, with a slight decrease to 5.32% in 2024. This indicates a temporary profitability disruption in 2021 with a subsequent recovery improving asset efficiency.

Adjusted Net Earnings (Loss)

The adjusted earnings show a different pattern compared to reported earnings. There was a positive adjustment in 2021 with 7,950 million USD compared to the loss on a reported basis. However, 2022 saw a significant adjusted loss of 2,405 million USD, contrasting the slight profit on a reported basis. Adjusted earnings then recovered to 5,689 million USD in 2023 and further increased to 8,997 million USD in 2024. This suggests that non-recurring or extraordinary items heavily influenced reported earnings, and the adjusted figures provide a more stable view of ongoing profitability.

Adjusted Total Assets

Adjusted total assets also decreased consistently from 242,535 million USD in 2020 to 116,135 million USD in 2024. This decline aligns with the trend in reported assets and supports the notion of significant asset base reduction, even after adjustments.

Adjusted Return on Assets (ROA)

The adjusted ROA shows recovery and improvement post-2021 adjustments. It increased from 2.24% in 2020 to 4.20% in 2021 despite the reported loss, then dropped to -1.36% in 2022 alongside an adjusted net loss. The measure subsequently improved to 3.72% in 2023 and surged to 7.75% in 2024, indicating improved profitability and asset utilization after adjusting for extraordinary items.

Overall, the data reflect a period of financial instability and restructuring, with significant asset reductions and volatile earnings. The adjusted metrics suggest better underlying operational performance than the reported figures imply. The upward trend in adjusted ROA in the later years is a positive indicator of efficiency and profitability improvement.