Stock Analysis on Net
Stock Analysis on Net

GE Aerospace (NYSE:GE)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

GE Aerospace, adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.40 0.39 0.36 0.29 0.33
Adjusted 0.42 0.42 0.38 0.30 0.34
Liquidity Ratio
Current Ratio
Reported 1.18 1.16 1.28 1.58 1.16
Adjusted 1.25 1.25 1.38 1.69 1.25
Solvency Ratios
Debt to Equity
Reported 0.77 0.89 0.87 2.11 3.21
Adjusted 1.01 1.06 1.01 2.46 3.53
Debt to Capital
Reported 0.43 0.47 0.47 0.68 0.76
Adjusted 0.50 0.51 0.50 0.71 0.78
Financial Leverage
Reported 5.96 5.16 4.93 7.13 9.40
Adjusted 6.77 5.39 5.04 7.63 9.66
Profitability Ratios
Net Profit Margin
Reported 14.68% 0.31% -9.17% 7.81% -5.69%
Adjusted 8.82% -3.26% 11.14% 7.39% 2.53%
Return on Equity (ROE)
Reported 34.63% 0.62% -16.17% 16.04% -17.58%
Adjusted 25.16% -7.32% 21.17% 17.11% 8.34%
Return on Assets (ROA)
Reported 5.81% 0.12% -3.28% 2.25% -1.87%
Adjusted 3.72% -1.36% 4.20% 2.24% 0.86%

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).

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 current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. GE Aerospace adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. GE Aerospace adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. GE Aerospace adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
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 increased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. GE Aerospace adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. GE Aerospace adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. GE Aerospace adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

GE Aerospace, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Selected Financial Data (US$ in millions)
Adjusted sales of equipment and services2 64,504 73,736 71,356 73,538 87,613
Adjusted total assets3 153,117 176,942 189,093 242,535 257,033
Activity Ratio
Adjusted total asset turnover4 0.42 0.42 0.38 0.30 0.34

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 2023 Calculation
Total asset turnover = Sales of equipment and services ÷ Total assets
= 64,565 ÷ 163,045 = 0.40

2 Adjusted sales of equipment and services. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted sales of equipment and services ÷ Adjusted total assets
= 64,504 ÷ 153,117 = 0.42

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.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 59,799 66,234 66,348 88,412 90,016
Current liabilities 50,876 56,947 51,953 56,069 77,572
Liquidity Ratio
Current ratio1 1.18 1.16 1.28 1.58 1.16
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 60,446 67,093 67,422 89,576 90,890
Adjusted current liabilities3 48,252 53,727 49,027 53,115 72,595
Liquidity Ratio
Adjusted current ratio4 1.25 1.25 1.38 1.69 1.25

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 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 59,799 ÷ 50,876 = 1.18

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 60,446 ÷ 48,252 = 1.25

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. GE Aerospace adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Selected Financial Data (US$ in millions)
Adjusted total debt2 22,937 34,743 38,033 78,039 94,044
Adjusted total equity3 22,614 32,847 37,546 31,768 26,617
Solvency Ratio
Adjusted debt to equity4 1.01 1.06 1.01 2.46 3.53

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 2023 Calculation
Debt to equity = Total debt ÷ Total GE shareholders’ equity
= 20,964 ÷ 27,378 = 0.77

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 22,937 ÷ 22,614 = 1.01

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. GE Aerospace adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 20,964 32,350 35,185 75,066 90,882
Total capital 48,342 68,716 75,495 110,618 119,198
Solvency Ratio
Debt to capital1 0.43 0.47 0.47 0.68 0.76
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 22,937 34,743 38,033 78,039 94,044
Adjusted total capital3 45,551 67,590 75,579 109,807 120,661
Solvency Ratio
Adjusted debt to capital4 0.50 0.51 0.50 0.71 0.78

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 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,964 ÷ 48,342 = 0.43

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 22,937 ÷ 45,551 = 0.50

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. GE Aerospace adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 163,045 187,788 198,874 253,452 266,048
Total GE shareholders’ equity 27,378 36,366 40,310 35,552 28,316
Solvency Ratio
Financial leverage1 5.96 5.16 4.93 7.13 9.40
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 153,117 176,942 189,093 242,535 257,033
Adjusted total equity3 22,614 32,847 37,546 31,768 26,617
Solvency Ratio
Adjusted financial leverage4 6.77 5.39 5.04 7.63 9.66

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 2023 Calculation
Financial leverage = Total assets ÷ Total GE shareholders’ equity
= 163,045 ÷ 27,378 = 5.96

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 153,117 ÷ 22,614 = 6.77

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 increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company 9,481 225 (6,520) 5,704 (4,979)
Sales of equipment and services 64,565 73,602 71,090 73,022 87,487
Profitability Ratio
Net profit margin1 14.68% 0.31% -9.17% 7.81% -5.69%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 5,689 (2,405) 7,950 5,437 2,220
Adjusted sales of equipment and services3 64,504 73,736 71,356 73,538 87,613
Profitability Ratio
Adjusted net profit margin4 8.82% -3.26% 11.14% 7.39% 2.53%

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 2023 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to the Company ÷ Sales of equipment and services
= 100 × 9,481 ÷ 64,565 = 14.68%

2 Adjusted net earnings (loss). See details »

3 Adjusted sales of equipment and services. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings (loss) ÷ Adjusted sales of equipment and services
= 100 × 5,689 ÷ 64,504 = 8.82%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. GE Aerospace adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company 9,481 225 (6,520) 5,704 (4,979)
Total GE shareholders’ equity 27,378 36,366 40,310 35,552 28,316
Profitability Ratio
ROE1 34.63% 0.62% -16.17% 16.04% -17.58%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 5,689 (2,405) 7,950 5,437 2,220
Adjusted total equity3 22,614 32,847 37,546 31,768 26,617
Profitability Ratio
Adjusted ROE4 25.16% -7.32% 21.17% 17.11% 8.34%

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 2023 Calculation
ROE = 100 × Net earnings (loss) attributable to the Company ÷ Total GE shareholders’ equity
= 100 × 9,481 ÷ 27,378 = 34.63%

2 Adjusted net earnings (loss). See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net earnings (loss) ÷ Adjusted total equity
= 100 × 5,689 ÷ 22,614 = 25.16%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. GE Aerospace adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 5,689 (2,405) 7,950 5,437 2,220
Adjusted total assets3 153,117 176,942 189,093 242,535 257,033
Profitability Ratio
Adjusted ROA4 3.72% -1.36% 4.20% 2.24% 0.86%

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 2023 Calculation
ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × 9,481 ÷ 163,045 = 5.81%

2 Adjusted net earnings (loss). See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net earnings (loss) ÷ Adjusted total assets
= 100 × 5,689 ÷ 153,117 = 3.72%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. GE Aerospace adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.