GE Aerospace (GE)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 27,378,000 | 33,696,000 | 40,310,000 | 35,552,000 | 28,316,000 |
| ROE | 34.63% | 1.01% | -16.17% | 16.04% | -17.58% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $9,481,000K ÷ $27,378,000K
= 34.63%
General Electric Co.'s return on equity (ROE) has fluctuated significantly over the past five years. In 2023, GE achieved a ROE of 33.55%, indicating that the company generated $33.55 in profit for every $100 of shareholders' equity. This represents a substantial improvement compared to the negative ROE of -0.18% in 2022 and the even lower ROE of -16.76% in 2021.
The positive ROE in 2023 suggests that General Electric Co. was able to efficiently utilize its equity to generate profits for its shareholders. However, it is essential to note that the company had higher ROE figures in previous years, such as 14.71% in 2020 and -19.20% in 2019.
Overall, the recent improvement in ROE for General Electric Co. is a positive sign, but further analysis of the company's financial performance and strategies would be necessary to ascertain the sustainability of this trend.
Peer comparison
Dec 31, 2023