GE Aerospace (GE)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 26,994,000 | 45,321,000 | 43,418,000 | 46,149,000 | -2,809,000 |
| Total assets | US$ in thousands | 123,140,000 | 173,300,000 | 188,851,000 | 198,874,000 | 256,211,000 |
| Operating ROA | 21.92% | 26.15% | 22.99% | 23.21% | -1.10% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $26,994,000K ÷ $123,140,000K
= 21.92%
The operating return on assets (operating ROA) for GE Aerospace has shown significant fluctuations over the past five years. As of December 31, 2020, the operating ROA was reported at -1.10%, indicating a negative return on assets generated from the company's core operations.
However, there has been a notable improvement in the operating ROA performance in the following years. By December 31, 2021, the operating ROA increased substantially to 23.21%, reaching its peak at 26.15% by December 31, 2023. This surge suggests that GE Aerospace was able to effectively utilize its assets to generate operating income during this period.
Although there was a slight decrease in the operating ROA to 21.92% as of December 31, 2024, the overall trend indicates that the company has been successful in improving its operating efficiency and profitability over the analyzed period. It is essential for GE Aerospace to maintain a consistent focus on optimizing asset utilization to sustain and build upon this positive trend in the future.
Peer comparison
Dec 31, 2024