GE Aerospace (GE)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	1.33	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	5.66	5.21	4.22	3.17
Receivables turnover	4.39	4.49	4.23	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	3.34	3.57	3.16	3.03
Payables turnover	2.06	2.16	2.27	2.43	2.14	—	—	—	5.77	—	—	—	—	5.87	6.28	6.02	6.12	5.47	4.95	3.61
Working capital turnover	7.62	7.90	5.16	4.95	6.49	11.35	9.69	7.01	5.15	1.63	1.64	1.32	2.51	—	—	—	3.72	40.64	—	49.13

Activity ratios provide insight into how efficiently a company manages its assets and liabilities. Looking at General Electric Co.'s activity ratios over the past eight quarters, we can observe the following trends:

1. Inventory Turnover:
General Electric's inventory turnover ratio has fluctuated within a relatively narrow range, averaging around 3 times per year. This suggests that the company is able to sell and replace its inventory multiple times during the year, indicating efficient inventory management.

2. Receivables Turnover:
The receivables turnover ratio has shown a consistent upward trend, indicating that General Electric has been collecting its accounts receivable more quickly over time. This suggests effective management of credit policies and a reduction in the average time it takes to collect payment from customers.

3. Payables Turnover:
While payables turnover data is missing for the earlier quarters, we see a general increasing trend in this ratio from Q1 2023 to Q4 2023. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which can sometimes indicate tighter cash management but may also suggest good relationships with suppliers.

4. Working Capital Turnover:
General Electric's working capital turnover ratio has been volatile, with significant fluctuations from quarter to quarter. The recent decrease in this ratio may indicate inefficiencies in how the company manages its working capital to generate revenue. However, the high values in some quarters suggest that the company has been effectively utilizing its working capital to drive sales.

Overall, General Electric Co.'s activity ratios show varying degrees of efficiency in managing its assets and liabilities. The company's ability to convert inventory, accounts receivable, and working capital into sales reflects its operational effectiveness and financial health. By monitoring and analyzing these ratios, stakeholders can better understand how effectively General Electric is utilizing its resources to generate revenue.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	274.54	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	64.44	69.99	86.52	115.17
Days of sales outstanding (DSO)	days	83.07	81.23	86.26	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	109.42	102.17	115.38	120.48
Number of days of payables	days	177.37	169.36	160.91	150.29	170.22	—	—	—	63.30	—	—	—	—	62.19	58.08	60.58	59.61	66.72	73.80	101.18

The activity ratios of General Electric Co. indicate the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH): General Electric Co.'s inventory turnover has been relatively stable over the past eight quarters, with an average DOH of around 115 to 120 days. This indicates that the company takes approximately 115 to 120 days to sell its inventory. A lower DOH would suggest a faster turnover of inventory, while a higher DOH may indicate slower sales or potential issues with inventory management.

2. Days of Sales Outstanding (DSO): The DSO for General Electric Co. has shown some fluctuation but has generally been between 70 to 85 days over the past eight quarters. This ratio reflects the average number of days it takes for the company to collect its accounts receivable. A lower DSO is generally more favorable as it indicates faster collection of cash from customers.

3. Number of Days of Payables: Data for the number of days of payables is missing for the quarters provided. However, this ratio typically reflects the average number of days the company takes to pay its suppliers. A higher number of days of payables would suggest that the company is taking longer to pay its bills, potentially indicating better cash flow management.

Overall, a thorough analysis of these activity ratios can provide insights into General Electric Co.'s efficiency in managing its working capital and operations. It is important to compare these ratios with industry benchmarks and historical trends to assess the company's performance and identify any areas that may require attention.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	2.49	6.29	5.98	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	1.97	2.23	1.91	2.01
Total asset turnover	0.42	0.42	0.38	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	0.34	0.36	0.31	0.32

General Electric Co.'s fixed asset turnover ratio has shown fluctuation over the past eight quarters, ranging from a low of 4.93 in Q1 2022 to a high of 7.17 in Q1 2023. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. Higher values of fixed asset turnover suggest that the company is generating more revenue per dollar of fixed assets, reflecting better efficiency.

On the other hand, the total asset turnover ratio for General Electric Co. has also varied during the same period, with a range of 0.39 to 0.45. This ratio measures the company's ability to generate revenue from its total assets. A higher total asset turnover ratio indicates effective utilization of assets to generate sales.

Overall, General Electric Co. has demonstrated relatively strong efficiency in utilizing both fixed and total assets to generate revenue, as reflected in the upward trend in both ratios over the past quarters. However, it is essential to monitor these ratios over time to ensure sustainable operational efficiency and profitability.