GE Aerospace (GE)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	67,954,000	58,100,000	74,196,000	75,833,000	90,221,000
Property, plant and equipment	US$ in thousands	27,332,000	31,633,000	31,904,000	44,662,000	45,879,000
Fixed asset turnover		2.49	1.84	2.33	1.70	1.97

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $67,954,000K ÷ $27,332,000K
= 2.49

General Electric Co.'s fixed asset turnover has shown a fluctuating trend over the past five years. The fixed asset turnover ratio measures how efficiently the company generates revenue from its investments in fixed assets.

From 2019 to 2020, there was a decrease in fixed asset turnover, indicating that the company was less efficient in generating revenue from its fixed assets during this period. However, from 2020 to 2021, there was a significant improvement in the ratio, suggesting that General Electric Co. became more effective in utilizing its fixed assets to generate sales.

In the latest two years, the fixed asset turnover ratio continued to increase, reaching 5.44 in 2023. This indicates that General Electric Co. has been able to generate $5.44 in revenue for every dollar invested in fixed assets in 2023, which reflects the company's improved efficiency in utilizing its fixed assets to drive sales.

Overall, the increasing trend in fixed asset turnover over the past few years signals that General Electric Co. has been enhancing its operational efficiency and effectively utilizing its fixed assets to generate revenue.