GE Aerospace (GE)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	38,702,000	35,348,000	58,100,000	74,196,000	75,833,000
Property, plant and equipment	US$ in thousands	—	27,332,000	31,633,000	31,904,000	44,662,000
Fixed asset turnover		—	1.29	1.84	2.33	1.70

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $38,702,000K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Looking at the data provided for GE Aerospace, we observe fluctuations in the fixed asset turnover ratio over the years:

- As of December 31, 2020, the fixed asset turnover ratio was 1.70, indicating that for every dollar invested in fixed assets, the company generated $1.70 in revenue.
- By December 31, 2021, the ratio improved significantly to 2.33, suggesting that GE Aerospace was able to generate more revenue per dollar of fixed asset investment.
- In 2022, the ratio decreased slightly to 1.84, indicating a modest decline in the efficiency of utilizing fixed assets for revenue generation.
- However, by December 31, 2023, the fixed asset turnover dropped notably to 1.29, suggesting a decrease in the company's ability to generate revenue from its fixed assets.
- Unfortunately, there is no data available for December 31, 2024, so we cannot assess the trend in the most recent year.

Overall, the analysis of GE Aerospace's fixed asset turnover ratio indicates some variability in the efficiency of utilizing fixed assets to generate revenue over the years. It is essential for the company to monitor and improve this ratio to ensure optimal utilization of its assets for revenue generation in the long term.