Stock Analysis on Net

GE Aerospace (NYSE:GE)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

GE Aerospace, ROE, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The return on equity (ROE) exhibited considerable fluctuation over the period examined, ranging from a high of 46.60% to a low of -72.16%. Initial years demonstrated a generally positive trend, followed by significant volatility and, ultimately, a recovery in more recent periods. Net income attributable to the Company and shareholders’ equity both experienced changes that directly influenced the ROE calculation.

Initial Growth (2005-2007)
From 2005 to 2007, ROE increased steadily, moving from 14.95% to 19.22%. This growth coincided with increasing net income and shareholders’ equity. The consistent positive performance suggests effective utilization of equity during this timeframe.
Period of Moderation and Decline (2008-2009)
Following 2007, ROE experienced a decline, reaching 9.40% in 2009. This decrease was attributable to a combination of factors, including a reduction in net income and, to a lesser extent, fluctuations in shareholders’ equity. The 2008 financial crisis likely contributed to this downturn.
Volatility and Negative ROE (2010-2016)
The period between 2010 and 2016 was characterized by significant volatility in ROE. While there were periods of positive returns (e.g., 11.65% in 2015), the company also experienced a substantial net loss in 2015, resulting in a negative ROE of -6.23%. Shareholders’ equity also began a noticeable decline during this period. 2016 saw a particularly sharp decrease in equity.
Extreme Negative ROE (2017-2019)
ROE reached a low of -72.16% in 2018, coinciding with a substantial net loss and a dramatic reduction in shareholders’ equity. The years 2017 and 2019 also registered negative ROE values, indicating significant underperformance relative to shareholder investment. The substantial loss in 2018 appears to be a major outlier.
Recovery and Recent Performance (2020-2025)
From 2020 onwards, ROE began a recovery trajectory. A positive net income in 2020 contributed to an ROE of 16.04%, although it was followed by a negative value in 2021. The most recent years (2022-2025) demonstrate a strong upward trend, with ROE increasing from 0.62% to 46.60%. This improvement is linked to increasing net income and a stabilization, and then reduction, in shareholders’ equity. The substantial ROE values in 2022, 2023, and 2024 suggest a significant improvement in profitability relative to equity.

Overall, the ROE demonstrates a cyclical pattern with periods of growth, decline, and recovery. The recent positive trend suggests improved financial performance, but the historical volatility highlights the potential for significant fluctuations in profitability.


Comparison to Competitors

GE Aerospace, ROE, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Capital Goods)


Comparison to Industry (Industrials)