Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
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Long-term Activity Ratios (Summary)
GE Aerospace, long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 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).
An analysis of long-term activity ratios reveals fluctuating performance across the observed period. Generally, the company demonstrates a capacity to generate revenue from its assets and equity, though efficiency appears to vary year to year. Several ratios exhibit increases followed by declines, suggesting potential cyclicality or the impact of specific strategic decisions.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio generally increased from 5.47 in 2021 to 6.06 in 2023, indicating improving efficiency in utilizing fixed assets to generate revenue. However, a decrease to 5.65 was observed in 2024, followed by a recovery to 6.07 in 2025. This fluctuation suggests potential variations in production levels, asset utilization strategies, or revenue recognition patterns.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also showed an upward trend from 4.55 in 2021 to 5.17 in 2023. A decline to 4.83 occurred in 2024, with a subsequent increase to 5.30 in 2025. The inclusion of operating lease obligations and right-of-use assets appears to moderate the turnover rate compared to the standard calculation, and the pattern of change mirrors that of the standard ratio.
- Total Asset Turnover
- The total asset turnover ratio experienced an increase from 0.36 in 2021 to 0.40 in 2023, suggesting improved efficiency in utilizing all assets to generate revenue. However, a notable decrease to 0.29 was recorded in 2024, followed by a partial recovery to 0.33 in 2025. This significant drop in 2024 warrants further investigation to determine the underlying causes, such as asset sales, increased investment in underutilized assets, or a decline in revenue.
- Equity Turnover
- The equity turnover ratio demonstrated a consistent increase from 1.76 in 2021 to 2.36 in 2023, indicating a growing ability to generate revenue from shareholder equity. A decrease to 1.82 was observed in 2024, followed by an increase to 2.27 in 2025. This ratio’s movement suggests a relationship with profitability and financial leverage, as it reflects the revenue generated per dollar of equity.
Overall, the observed ratios indicate a dynamic relationship between asset utilization, revenue generation, and equity investment. The fluctuations across the period suggest the company’s performance is sensitive to internal and external factors, and continued monitoring is recommended to understand the drivers behind these changes.
Net Fixed Asset Turnover
GE Aerospace, net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of equipment and services | ||||||
| Property, plant and equipment, net, excluding ROU operating lease assets | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Sales of equipment and services ÷ Property, plant and equipment, net, excluding ROU operating lease assets
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibited a generally stable pattern over the five-year period, with some fluctuations. Sales of equipment and services decreased significantly in 2023 and remained low in 2024 before showing a modest recovery in 2025. Simultaneously, net property, plant, and equipment decreased consistently throughout the period, with the most substantial reduction occurring between 2022 and 2024.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 5.47 in 2021 to 5.96 in 2022, indicating improved efficiency in generating sales from fixed assets. This upward trend continued into 2023, reaching 6.06. Despite a decline in sales in 2023, the ratio remained high due to the concurrent decrease in net fixed assets. A decrease to 5.65 was observed in 2024, coinciding with the lowest sales figure and a substantial reduction in fixed assets. The ratio recovered slightly in 2025, reaching 6.07, mirroring the modest increase in sales.
The consistent decline in net property, plant, and equipment suggests potential asset disposals, depreciation, or a shift in business strategy away from asset-intensive operations. The ratio’s stability, despite these changes, indicates that the company maintained a relatively consistent ability to generate sales per dollar of fixed assets. The dip in 2024 warrants further investigation, as it corresponds with the lowest sales volume and a significant reduction in the asset base.
The recovery in 2025, while modest, suggests a potential stabilization of sales and asset levels. Continued monitoring of these trends is recommended to assess the long-term implications of the asset reduction strategy and its impact on revenue generation.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
GE Aerospace, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of equipment and services | ||||||
| Property, plant and equipment, net, excluding ROU operating lease assets | ||||||
| ROU operating lease assets | ||||||
| Property, plant and equipment, net, excluding ROU operating lease assets (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales of equipment and services ÷ Property, plant and equipment, net, excluding ROU operating lease assets (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals a fluctuating relationship between sales and net fixed assets over the five-year period. While sales experienced initial growth followed by a significant decline, net fixed assets consistently decreased, resulting in a generally stable net fixed asset turnover ratio with a slight upward trend overall.
- Sales of Equipment and Services
- Sales exhibited an increase from US$71,090 million in 2021 to US$73,602 million in 2022. However, a substantial decrease was observed in subsequent years, falling to US$64,565 million in 2023 and further declining to US$35,121 million in 2024. A partial recovery was noted in 2025, with sales reaching US$42,322 million. This pattern suggests potential shifts in market demand, operational changes, or significant divestitures impacting revenue generation.
- Property, Plant and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- Net fixed assets demonstrated a consistent downward trend throughout the period. Beginning at US$15,609 million in 2021, the value decreased to US$14,478 million in 2022, US$12,494 million in 2023, and US$7,277 million in 2024. A slight increase to US$7,987 million was recorded in 2025, but remained significantly lower than the initial value. This decline could be attributed to asset sales, depreciation exceeding new investments, or re-evaluation of asset values.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio, which measures the efficiency of asset utilization, showed relative stability despite the fluctuations in sales and net fixed assets. The ratio increased from 4.55 in 2021 to 5.08 in 2022, and 5.17 in 2023. It then decreased slightly to 4.83 in 2024, coinciding with the largest drop in sales. The ratio recovered to 5.30 in 2025, indicating improved asset utilization despite the lower sales volume compared to 2021 and 2022. The overall trend suggests that the company maintained a reasonably consistent ability to generate sales from its fixed asset base, even during periods of significant revenue decline. The increase in the ratio in 2025, despite lower sales than earlier years, suggests increased efficiency in asset utilization.
The combined trends indicate that the company is becoming less capital intensive, as evidenced by the decreasing net fixed assets. The stable to slightly increasing net fixed asset turnover ratio suggests that the reduction in assets has not negatively impacted the company’s ability to generate revenue from those assets, and may even indicate improved efficiency.
Total Asset Turnover
GE Aerospace, total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of equipment and services | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Sales of equipment and services ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited fluctuating performance over the five-year period. Initially, the ratio increased before declining, suggesting shifts in the efficiency with which assets were utilized to generate sales.
- Overall Trend
- The ratio began at 0.36 in 2021, increasing to 0.39 in 2022, reaching a peak of 0.40 in 2023. A subsequent decrease to 0.29 was observed in 2024, followed by a partial recovery to 0.33 in 2025. This indicates an initial improvement in asset utilization, followed by a significant decline and a modest rebound.
- Year-over-Year Changes
- From 2021 to 2022, the total asset turnover ratio increased by 0.03, indicating improved efficiency in generating sales from assets. The increase from 2022 to 2023 was 0.01, representing a smaller incremental improvement. However, a substantial decrease of 0.11 occurred between 2023 and 2024, signaling a significant reduction in asset utilization efficiency. The final period, from 2024 to 2025, showed an increase of 0.04, suggesting a slight recovery in asset efficiency.
- Relationship to Sales and Assets
- The decline in the ratio in 2024 coincided with a substantial decrease in sales of equipment and services, from US$64,565 million in 2023 to US$35,121 million. Simultaneously, total assets also decreased, but at a slower rate. This suggests that the primary driver of the ratio’s decline was the more significant reduction in sales relative to the decrease in asset base. The partial recovery in 2025 aligns with the increase in sales, although assets also experienced a slight increase.
The observed fluctuations warrant further investigation to understand the underlying causes. Factors such as changes in sales strategies, asset management practices, and industry dynamics could contribute to these trends.
Equity Turnover
GE Aerospace, equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of equipment and services | ||||||
| Shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Capital Goods | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Sales of equipment and services ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
An examination of the financial information reveals fluctuating performance in equity turnover over the five-year period. Sales of equipment and services experienced initial growth followed by a significant decline, while shareholders’ equity consistently decreased throughout the period. The equity turnover ratio, calculated from these figures, demonstrates a corresponding pattern of change.
- Equity Turnover
- The equity turnover ratio increased from 1.76 in 2021 to 2.02 in 2022, indicating improved efficiency in generating sales from shareholders’ equity. This upward trend continued in 2023, reaching a peak of 2.36. This suggests the company was becoming increasingly effective at utilizing equity to produce revenue.
- However, the ratio decreased to 1.82 in 2024, coinciding with a substantial reduction in sales of equipment and services. This decline suggests a less efficient use of equity in generating sales during that year.
- A subsequent increase to 2.27 in 2025 indicates a partial recovery in the efficiency of equity utilization, despite continued lower sales figures compared to earlier years. The ratio in 2025 remains higher than the levels observed in 2021 and 2022.
The observed fluctuations in equity turnover appear strongly correlated with changes in sales. The decrease in shareholders’ equity throughout the period likely contributes to the higher turnover ratios in later years, as the same level of sales is generated from a smaller equity base. However, the significant drop in sales in 2024 had a dampening effect on the ratio, demonstrating the overriding influence of revenue generation on this metric.
- Sales Trend
- Sales of equipment and services increased from US$71,090 million in 2021 to US$73,602 million in 2022, representing modest growth. A subsequent decrease to US$64,565 million in 2023 signaled a shift in the sales trajectory.
- The most substantial change occurred between 2023 and 2024, with sales plummeting to US$35,121 million. This represents a significant contraction in revenue.
- A partial recovery was observed in 2025, with sales increasing to US$42,322 million, but this level remains considerably below the figures recorded in 2021, 2022, and 2023.
- Shareholders’ Equity Trend
- Shareholders’ equity exhibited a consistent downward trend throughout the period, decreasing from US$40,310 million in 2021 to US$36,366 million in 2022. This decline continued in subsequent years, reaching US$27,378 million in 2023.
- Further reductions were observed in 2024 and 2025, with equity falling to US$19,342 million and US$18,677 million, respectively. This consistent decrease in equity base is a notable feature of the financial information.