GE Aerospace (GE)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 67,954,000 | 65,359,000 | 62,483,000 | 59,911,000 | 58,100,000 | 61,575,000 | 65,674,000 | 69,800,000 | 74,196,000 | 74,926,000 | 74,966,000 | 73,524,000 | 75,833,000 | 76,045,000 | 80,796,000 | 87,399,000 | 90,221,000 | 95,475,000 | 95,507,000 | 101,255,000 |
| Total current assets | US$ in thousands | 59,799,000 | 56,434,000 | 60,213,000 | 60,286,000 | 58,384,000 | 60,082,000 | 60,658,000 | 63,299,000 | 66,348,000 | 103,587,000 | 102,411,000 | 113,198,000 | 84,853,000 | 37,545,000 | 37,757,000 | 48,129,000 | 103,096,000 | 51,405,000 | 51,923,000 | 56,480,000 |
| Total current liabilities | US$ in thousands | 50,876,000 | 48,164,000 | 48,108,000 | 48,177,000 | 49,428,000 | 54,657,000 | 53,883,000 | 53,344,000 | 51,953,000 | 57,676,000 | 56,639,000 | 57,681,000 | 54,613,000 | 38,817,000 | 43,258,000 | 52,742,000 | 78,865,000 | 49,056,000 | 52,752,000 | 54,419,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (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 eight quarters, ranging from a low of 5.95 in Q2 2023 to a high of 13.85 in Q3 2022. This ratio measures how effectively the company is utilizing its working capital to support its sales activities. A higher working capital turnover indicates that the company is efficiently using its current assets to generate revenue.
The downward trend in working capital turnover from Q3 2022 to Q2 2023 suggests a potential decrease in efficiency in utilizing working capital. However, the ratio increased in Q3 2022, which could indicate a temporary improvement in this aspect. Overall, General Electric Co. should aim to maintain a consistent and optimal level of working capital turnover to support its operations effectively.
Peer comparison
Dec 31, 2023