GE Aerospace (GE)

Working capital 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
Total current assets	US$ in thousands	59,799,000	58,384,000	66,348,000	84,853,000	103,096,000
Total current liabilities	US$ in thousands	50,876,000	49,428,000	51,953,000	54,613,000	78,865,000
Working capital turnover		7.62	6.49	5.15	2.51	3.72

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $67,954,000K ÷ ($59,799,000K – $50,876,000K)
= 7.62

General Electric Co.'s working capital turnover has fluctuated over the past five years, ranging from 1.58 to 9.93. The highest working capital turnover was observed in 2019, indicating efficient management of working capital to generate sales. In contrast, the lowest turnover in 2020 suggests potential inefficiencies in managing working capital.

The declining trend from 2019 to 2021 may indicate a decrease in the efficiency of utilizing working capital to generate sales. However, the significant improvement in 2022 and 2023 shows a positive turnaround in this aspect.

Overall, the recent improvement in the working capital turnover ratio is a positive sign, indicating General Electric Co.'s ability to effectively utilize its working capital to support sales activities. Keeping this ratio at optimal levels can help the company maintain liquidity and efficiency in its operations.