GE Aerospace (GE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 6.37 | 6.32 | 5.60 | 4.93 | 7.21 |
GE Aerospace has consistently maintained a very strong solvency position over the years, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all reporting periods from 2020 to 2024. These ratios suggest that the company has minimal reliance on debt financing to support its operations and investments.
In terms of financial leverage, GE Aerospace has shown a slight increase in the financial leverage ratio over the years, with values of 7.21 in 2020, decreasing to 4.93 in 2021, and progressively increasing to reach 6.37 by the end of 2024. Despite this increase, the financial leverage ratio remains within a reasonable range, indicating that the company's use of debt to fund its operations is at a manageable level.
Overall, GE Aerospace's solvency ratios reflect a healthy financial position with a conservative debt structure, highlighting the company's ability to meet its financial obligations and maintain stability in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 27.38 | 40.54 | 29.40 | 25.78 | -0.80 |
The interest coverage ratio for GE Aerospace has shown significant fluctuations over the years. As of December 31, 2020, the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses. However, from December 31, 2021, the interest coverage ratio saw a substantial improvement, reaching 25.78, which suggests the company's ability to cover its interest payments improved significantly.
Subsequently, the interest coverage ratio continued to improve over the next few years, reaching 29.40 as of December 31, 2022, 40.54 as of December 31, 2023, and 27.38 as of December 31, 2024. These figures indicate a strong ability to meet interest obligations in those years.
Overall, the trend in interest coverage ratio for GE Aerospace shows a positive trajectory, with notable improvements in recent years, signaling a better financial health and decreased risk of defaulting on interest payments.