GE Aerospace (GE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 84.86% | 106.16% | 83.37% | 4.26% | 8.81% |
| Operating profit margin | 66.69% | 74.73% | 62.20% | -3.70% | -10.35% |
| Pretax margin | 15.66% | 1.21% | -9.17% | 6.88% | -4.91% |
| Net profit margin | 13.95% | 0.58% | -8.79% | 7.52% | -5.52% |
General Electric Co. has shown fluctuations in its profitability ratios over the past five years. The gross profit margin has ranged from 24.24% to 27.46%, with a slight decrease to 25.84% in 2023. This indicates the company's ability to generate profits after deducting the cost of goods sold.
The operating profit margin has also varied significantly, with the lowest point of -1.03% in 2020, followed by an improvement to 5.26% in 2023. This ratio reflects the efficiency of General Electric Co. in managing its operating expenses to generate a profit from core business operations.
The pretax margin has shown volatility, with a drastic improvement from -4.96% in 2021 to 15.00% in 2023. This ratio signifies the company's ability to generate profits before income taxes are deducted, reflecting changes in operating efficiency and non-operating items over the years.
The net profit margin, which represents the company's bottom line profitability after all expenses and taxes have been accounted for, has also fluctuated. General Electric Co. experienced negative net profit margins in 2019 and 2021, but showed significant improvement in 2023 with a net profit margin of 13.52%.
Overall, General Electric Co. has seen some improvements in its profitability ratios in 2023 compared to previous years, indicating potential progress in operational efficiency and financial performance. However, the company still faces challenges in maintaining consistent profitability over the years. Additional analysis of other financial metrics and factors affecting the business would provide a more comprehensive understanding of General Electric Co.'s overall financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 27.80% | 22.99% | 23.21% | -1.10% | -3.52% |
| Return on assets (ROA) | 5.81% | 0.18% | -3.28% | 2.23% | -1.88% |
| Return on total capital | 165.54% | 128.85% | 114.49% | -7.90% | -32.98% |
| Return on equity (ROE) | 34.63% | 1.01% | -16.17% | 16.04% | -17.58% |
General Electric Co.'s profitability ratios indicate varying levels of performance over the past five years.
1. Operating return on assets (Operating ROA) has shown improvement over the period, increasing from 1.43% in 2022 to 2.19% in 2023. This ratio measures how efficiently the company generates operating profits from its assets.
2. Return on assets (ROA) has fluctuated significantly, turning negative in 2022 and 2021 before rebounding to 5.63% in 2023. This ratio reflects the company's overall ability to generate profits from its total assets.
3. Return on total capital has also displayed volatility, with a notable increase from -0.77% in 2020 to 7.88% in 2023. This ratio evaluates the efficiency of both debt and equity capital in generating returns for the company.
4. Return on equity (ROE) has exhibited similar variability, soaring to 33.55% in 2023 from negative figures in 2021 and 2020. ROE measures the company's ability to generate profits from shareholders' equity.
Overall, General Electric Co. has shown improvement in its profitability ratios in 2023 compared to previous years, reflecting a potentially healthier financial performance and better utilization of its assets and capital.