GE Aerospace (GE)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 45,321,000 | 43,418,000 | 46,149,000 | -2,809,000 | -9,338,000 |
| Total assets | US$ in thousands | 163,045,000 | 188,851,000 | 198,874,000 | 256,211,000 | 265,177,000 |
| Operating ROA | 27.80% | 22.99% | 23.21% | -1.10% | -3.52% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $45,321,000K ÷ $163,045,000K
= 27.80%
Operating return on assets (operating ROA) is an important financial ratio that indicates the company's profitability and efficiency in generating profits from its operating assets.
Analyzing the trend of General Electric Co.'s operating ROA over the past five years reveals some interesting insights.
In 2019, the company had a strong operating ROA of 2.04%, indicating efficient utilization of its operating assets to generate profits. This was followed by a significant decline in 2020, where the operating ROA fell to -0.33%, signaling an operational loss during that year.
However, General Electric Co. managed to improve its operating ROA in the subsequent years, with values of 1.85% in 2021, 1.43% in 2022, and 2.19% in 2023. This trend shows a recovery in profitability and operational efficiency over the past three years.
Overall, General Electric Co.'s operating ROA has shown variability over the five-year period, with a mix of positive and negative values. It is essential for the company to continue monitoring and improving this ratio to ensure sustainable profitability and effective utilization of its assets in the future.
Peer comparison
Dec 31, 2023