GE Aerospace (GE)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 86.49% | 92.24% | 112.17% | 129.80% | 109.48% | 95.75% | 88.29% | 82.78% | 85.71% | 80.30% | 54.36% | 31.13% | 14.65% | 13.57% | 11.38% | 6.24% | 6.10% | 2.77% | 4.00% | 8.35% |
| Operating profit margin | 68.41% | 74.48% | 92.16% | 104.87% | 88.48% | 77.88% | 69.98% | 64.88% | 62.87% | 58.74% | 34.64% | 12.67% | -0.51% | -1.44% | -3.86% | -11.26% | -10.52% | -19.56% | -17.98% | -12.33% |
| Pretax margin | 19.61% | 19.57% | 15.61% | 12.95% | 25.34% | 22.54% | 19.83% | 16.23% | 1.45% | -8.87% | -6.66% | -7.52% | -9.17% | -0.35% | -4.20% | -5.03% | 6.88% | 4.94% | -4.94% | -2.18% |
| Net profit margin | 16.94% | 16.72% | 12.89% | 9.63% | 22.57% | 20.43% | 18.15% | 14.99% | 0.59% | -9.26% | -7.01% | -6.95% | -8.79% | -0.05% | -3.26% | -4.48% | 7.52% | 4.99% | -5.55% | -2.71% |
The profitability ratios of GE Aerospace have shown significant fluctuations over the period analyzed.
1. Gross profit margin has increased steadily from 8.35% in March 2020 to a peak of 129.80% in March 2024, indicating an improvement in the company's cost control and pricing strategies.
2. Operating profit margin was negative in the early stages but turned positive from March 2022 onwards, reaching a high of 104.87% in March 2024. This suggests that the company has effectively managed its operating expenses and improved operational efficiency.
3. Pretax margin fluctuated over the period, with swings between negative and positive values. The margin improved towards the end of the period, reaching 19.61% in December 2024, indicating better control over pre-tax earnings relative to revenues.
4. Net profit margin also varied, alternating between negative and positive values. The margin improved consistently over time, reaching 16.94% in December 2024, reflecting the company's ability to generate profits after all expenses.
Overall, GE Aerospace has shown a strong improvement in profitability ratios, particularly in gross and net profit margins, indicating effective cost management and revenue generation strategies. However, the company experienced fluctuations in operating and pre-tax margins, which may require further analysis to understand the underlying reasons for these variations.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.50% | 21.95% | 27.54% | 23.33% | 21.44% | 24.54% | 23.41% | 23.63% | 19.34% | 20.00% | 12.26% | 4.61% | -0.19% | -0.46% | -1.22% | -3.38% | -3.11% | -5.85% | -5.66% | -4.11% |
| Return on assets (ROA) | 5.32% | 4.93% | 3.85% | 2.14% | 5.47% | 6.44% | 6.07% | 5.46% | 0.18% | -3.15% | -2.48% | -2.53% | -3.28% | -0.02% | -1.03% | -1.34% | 2.23% | 1.49% | -1.75% | -0.90% |
| Return on total capital | 136.88% | 147.37% | 182.40% | 128.10% | 135.61% | 134.14% | 122.34% | 122.80% | 108.40% | 114.92% | 65.66% | 22.67% | -0.94% | -2.88% | -8.64% | -24.66% | -22.43% | -44.72% | -43.13% | -30.53% |
| Return on equity (ROE) | 33.90% | 33.09% | 25.52% | 11.77% | 34.59% | 35.19% | 31.73% | 28.38% | 1.01% | -18.11% | -13.29% | -12.44% | -16.17% | -0.11% | -7.29% | -9.82% | 16.04% | 11.41% | -13.31% | -6.71% |
GE Aerospace has shown a significant improvement in its profitability ratios over the past few years. The Operating return on assets (Operating ROA) has gradually increased from negative percentages to a high of 27.54% as of June 30, 2024, indicating that the company is effectively generating operating income relative to its total assets.
Similarly, the Return on assets (ROA) has also shown a positive trend, starting from negative percentages and reaching 5.32% as of December 31, 2024. This indicates that the company is becoming more efficient in utilizing its assets to generate profits.
Return on total capital has also demonstrated a strong improvement, with a sharp increase from negative percentages to 136.88% as of December 31, 2024. This suggests that the company is efficiently using its total capital to generate returns for its stakeholders.
Lastly, the Return on equity (ROE) has shown a positive trajectory, increasing from negative percentages to 33.90% as of December 31, 2024. This indicates that the company is effectively utilizing shareholder equity to generate profits and create value for its shareholders.
Overall, these profitability ratios reflect a positive trend in GE Aerospace's financial performance, suggesting improved efficiency, profitability, and shareholder value creation over the analyzed period.