GE Aerospace (GE)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 38,703,000 | 37,347,000 | 36,807,000 | 36,468,000 | 41,999,000 | 49,371,000 | 54,539,000 | 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 |
| Total current assets | US$ in thousands | 37,635,000 | 38,649,000 | 37,352,000 | 59,589,000 | 42,556,000 | 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 |
| Total current liabilities | US$ in thousands | 34,392,000 | 34,093,000 | 32,750,000 | 51,087,000 | 32,103,000 | 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 |
| 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 | — | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $38,703,000K ÷ ($37,635,000K – $34,392,000K)
= 11.93
The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in managing working capital.
In the case of GE Aerospace, the working capital turnover ratio has shown some fluctuations over the past few years. It was not available for the periods ending March, June, and September 2020. However, from December 2020 to March 2022, the ratio experienced a significant increase from 2.51 to 7.01, indicating a notable improvement in efficiency in utilizing working capital.
Subsequently, the ratio continued to rise, reaching its peak at 11.93 by December 2024. This suggests that GE Aerospace was able to generate more revenue relative to its working capital during this period. However, in the following periods, there was a slight decrease in the ratio, ending at 8.20 in September 2024.
Overall, the working capital turnover ratio for GE Aerospace has shown variability, with periods of significant improvement followed by some fluctuations. It is important for the company to closely monitor and manage its working capital to ensure optimal efficiency in generating revenue.
Peer comparison
Dec 31, 2024