GE Aerospace (GE)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 27,378,000 | 33,696,000 | 40,310,000 | 35,552,000 | 28,316,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $27,378,000K
= 0.00
General Electric Co.'s debt-to-equity ratio has shown a declining trend over the past five years, decreasing from 3.21 in 2019 to 0.88 in 2023. This indicates a significant reduction in the company's reliance on debt to finance its operations and investment activities over time.
The sharp decrease in the debt-to-equity ratio from 2019 to 2020, where it dropped from 3.21 to 2.03, suggests that General Electric Co. made substantial efforts to deleverage its balance sheet during that period. The subsequent gradual decrease from 2.03 in 2020 to 0.88 in 2023 reflects a more conservative capital structure, with a greater proportion of equity financing compared to debt financing.
The current debt-to-equity ratio of 0.88 as of December 31, 2023, indicates that General Electric Co. has a lower level of debt relative to its equity, which can be viewed positively in terms of financial stability and risk management. However, it is essential to consider the industry norms and compare the company's ratio with its peers for a more comprehensive assessment of its capital structure and financial health.
Peer comparison
Dec 31, 2023