GE Aerospace (GE)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 163,045,000 | 188,851,000 | 198,874,000 | 256,211,000 | 265,177,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $163,045,000K
= 0.00
The debt-to-assets ratio of General Electric Co. has exhibited a decreasing trend over the past five years, indicating a more conservative capital structure and improved financial health.
As of December 31, 2023, the debt-to-assets ratio stands at 0.15, a decline from 0.17 in 2022 and 0.18 in 2021. This reduction suggests that General Electric is relying less on debt financing relative to its total assets, which can enhance financial flexibility and reduce financial risk.
Comparing the current ratio to the figures in 2020 and 2019, where it was 0.28 and 0.34 respectively, the company has significantly improved its leverage position. This downward trend is generally viewed favorably by investors and creditors, as it indicates a lower level of financial leverage and potentially lowers default risk.
Overall, the declining debt-to-assets ratio of General Electric Co. reflects a more balanced and sustainable approach to capital structure management, which may contribute to long-term financial stability and performance.
Peer comparison
Dec 31, 2023