GE Aerospace (GE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 123,140,000 | 173,300,000 | 188,851,000 | 198,874,000 | 256,211,000 |
| Total stockholders’ equity | US$ in thousands | 19,342,000 | 27,403,000 | 33,696,000 | 40,310,000 | 35,552,000 |
| Financial leverage ratio | 6.37 | 6.32 | 5.60 | 4.93 | 7.21 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $123,140,000K ÷ $19,342,000K
= 6.37
The financial leverage ratio for GE Aerospace has shown fluctuations over the years. It decreased from 7.21 in December 2020 to 4.93 in December 2021, indicating a significant reduction in the company's leverage. The ratio then increased to 5.60 in December 2022, followed by a further uptick to 6.32 in December 2023, and a slight increase to 6.37 in December 2024.
Overall, the company experienced a decrease in leverage initially, which was followed by a gradual increase in leverage over the subsequent years. The fluctuations in the financial leverage ratio suggest varying degrees of debt utilization by GE Aerospace during the period under review. It is essential for stakeholders to monitor these changes closely to assess the company's risk exposure and financial stability.
Peer comparison
Dec 31, 2024