GE Aerospace (GE)

Working capital 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
Total current assets	US$ in thousands	37,635,000	42,556,000	58,384,000	66,348,000	84,853,000
Total current liabilities	US$ in thousands	34,392,000	32,103,000	49,428,000	51,953,000	54,613,000
Working capital turnover		11.93	3.38	6.49	5.15	2.51

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $38,702,000K ÷ ($37,635,000K – $34,392,000K)
= 11.93

Based on the provided data, the working capital turnover of GE Aerospace has shown a significant increase over the years.

In December 31, 2020, the working capital turnover was 2.51, indicating that the company generated $2.51 in revenue for every dollar of working capital invested. This ratio increased to 5.15 by December 31, 2021, showing an improvement in efficiency in utilizing working capital.

The trend continued to improve with a working capital turnover of 6.49 by December 31, 2022, indicating that GE Aerospace generated $6.49 in revenue for every dollar of working capital.

However, there was a slight decrease in efficiency by December 31, 2023, with a working capital turnover of 3.38. This may suggest a temporary slowdown in working capital management.

By December 31, 2024, the working capital turnover surged to 11.93, showcasing a substantial improvement in efficiency in utilizing working capital to generate revenue.

Overall, the increasing trend in working capital turnover reflects an enhancement in the company's efficiency in managing its working capital to drive revenue generation over the years. It is essential for GE Aerospace to sustain this positive momentum to ensure optimal utilization of working capital resources.