GE Aerospace (GE)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	1.26	2.05	2.18	1.26	2.65	1.35	1.42	1.51	1.80	1.46	2.21	3.16	3.99	3.85	3.96	4.28	4.66	5.48	5.55	5.93
Receivables turnover	4.15	4.18	4.40	2.42	4.83	3.39	3.69	4.22	3.92	3.58	4.03	4.35	4.75	4.95	4.83	4.69	4.54	4.40	5.04	3.19
Payables turnover	1.56	2.55	2.68	2.12	2.92	2.16	2.27	2.43	2.14	—	—	—	5.77	—	—	—	—	5.87	6.28	6.02
Working capital turnover	11.93	8.20	8.00	4.29	4.02	5.97	4.51	4.95	6.49	11.35	9.69	7.01	5.15	1.63	1.64	1.32	2.51	—	—	—

GE Aerospace's Inventory turnover ratio has been steadily declining from 5.93 on March 31, 2020, to 1.26 on June 30, 2024, indicating that the company is taking longer to sell its inventory over time.

The Receivables turnover ratio has fluctuated over the years, with a peak of 5.04 on June 30, 2020, and a low of 2.42 on March 31, 2024. This suggests variability in how quickly GE Aerospace collects payments from its customers.

The Payables turnover ratio shows irregular patterns, with missing data for several periods. It ranged from 6.02 on March 31, 2020, to 1.56 on December 31, 2024, indicating changes in how fast the company pays its suppliers.

The Working capital turnover ratio, which was not calculable in the early periods, has shown a significant improvement since December 31, 2020, increasing from 2.51 to 11.93 on December 31, 2024. This signifies that GE Aerospace has been able to generate more revenue relative to its working capital investment in recent years.

Overall, these activity ratios reflect the efficiency and effectiveness of GE Aerospace's operations in managing inventory, receivables, payables, and working capital turnover.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	289.06	177.68	167.55	289.59	137.60	269.57	256.36	242.25	203.12	249.74	165.48	115.59	91.43	94.73	92.27	85.30	78.27	66.58	65.77	61.56
Days of sales outstanding (DSO)	days	87.96	87.33	83.00	151.13	75.64	107.54	98.83	86.58	93.17	101.94	90.50	83.93	76.84	73.78	75.50	77.88	80.34	83.05	72.47	114.54
Number of days of payables	days	234.16	143.14	136.37	172.51	124.84	169.36	160.91	150.29	170.22	—	—	—	63.30	—	—	—	—	62.19	58.08	60.58

The Days of Inventory on Hand (DOH) ratio for GE Aerospace shows a fluctuating trend over the years, ranging from a low of 61.56 days on March 31, 2020, to a high of 289.59 days on March 31, 2024. This indicates a significant increase in the number of days it takes for the company to sell its inventory, potentially signaling issues with inventory management and potential obsolescence.

In terms of the Days of Sales Outstanding (DSO) ratio, GE Aerospace has experienced some variations as well, with a low of 72.47 days on June 30, 2020, and a peak of 151.13 days on March 31, 2024. This metric reflects the average number of days it takes for the company to collect its accounts receivable, indicating potential challenges in collecting payments from customers efficiently.

The Number of Days of Payables ratio for GE Aerospace has been inconsistent as well, with fluctuations from as low as 58.08 days on June 30, 2020, to as high as 234.16 days on December 31, 2024. It appears that the company has been extending its payment periods to suppliers over time, which could be a strategy to manage cash flow but may also indicate strained supplier relationships.

Overall, the activity ratios for GE Aerospace suggest inefficiencies in inventory management, collection of accounts receivable, and payment to suppliers, highlighting areas that may require attention to improve the company's operational performance and financial health.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	—	6.04	6.13	3.45	1.54	4.75	5.22	5.81	1.84	5.13	5.30	5.54	2.33	5.70	5.59	5.45	1.70	1.80	1.89	2.02
Total asset turnover	0.31	0.29	0.30	0.22	0.24	0.32	0.33	0.36	0.31	0.34	0.35	0.36	0.37	0.32	0.32	0.30	0.30	0.30	0.32	0.33

The Fixed Asset Turnover ratio measures how efficiently GE Aerospace is utilizing its fixed assets to generate sales. The trend of this ratio shows fluctuations over time. From March 31, 2020, to December 31, 2021, the ratio increased steadily, peaking at 5.81 on March 31, 2023, before declining. This indicates that the company was able to generate more revenue per dollar of fixed assets during this period. However, the ratio decreased significantly by December 31, 2024, which could suggest a decrease in efficiency in utilizing fixed assets.

On the other hand, the Total Asset Turnover ratio provides insight into how effectively GE Aerospace is generating sales from all its assets. There is a downward trend in this ratio from March 31, 2020, to December 31, 2024. This indicates a decrease in the company's ability to generate sales from its total assets over time, which could be a concern.

In conclusion, while the Fixed Asset Turnover ratio shows fluctuations with peaks and declines, the Total Asset Turnover ratio demonstrates a consistent downward trend. These trends suggest that GE Aerospace may need to evaluate and improve its asset utilization efficiency to enhance overall sales generation.