GE Aerospace (GE)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	9,481,000	339,000	-6,520,000	5,704,000	-4,979,000
Total assets	US$ in thousands	163,045,000	188,851,000	198,874,000	256,211,000	265,177,000
ROA		5.81%	0.18%	-3.28%	2.23%	-1.88%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $9,481,000K ÷ $163,045,000K
= 5.81%

General Electric Co.'s return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the ROA improved significantly to 5.63%, indicating that the company generated a higher level of profit relative to its total assets compared to the previous year. This positive trend is a promising sign of improved efficiency in utilizing assets to generate profits.

In contrast, the ROA was negative in 2022 and 2021, pointing to situations where the company's net income was insufficient to cover the total assets, resulting in a loss. This suggests potential operational inefficiencies or issues affecting profitability during those years.

The 2020 and 2019 ROA figures indicate positive returns of 2.06% and -2.04%, respectively. While the positive ROA in 2020 implies a decent performance in generating profit considering the total assets employed, the negative ROA in 2019 suggests that the company faced challenges in profitability during that period.

Overall, General Electric Co.'s ROA has varied significantly, reflecting fluctuations in profitability relative to its asset base over the past five years. The recent improvement in ROA is encouraging, but ongoing monitoring of the company's asset efficiency and profitability is recommended to sustain positive performance.