GE Aerospace (GE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 163,045,000 | 188,851,000 | 198,874,000 | 256,211,000 | 265,177,000 |
| Total stockholders’ equity | US$ in thousands | 27,378,000 | 33,696,000 | 40,310,000 | 35,552,000 | 28,316,000 |
| Financial leverage ratio | 5.96 | 5.60 | 4.93 | 7.21 | 9.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $163,045,000K ÷ $27,378,000K
= 5.96
The financial leverage ratio of General Electric Co. has shown fluctuations over the past five years. In 2019, the ratio was highest at 9.40, indicating that the company relied heavily on debt to finance its operations. Subsequently, there was a significant decrease in 2020 to 7.13, suggesting a slight improvement in the company's debt management.
In 2021, the financial leverage ratio further decreased to 4.93, reflecting a significant reduction in the company's reliance on debt financing. However, in 2022, there was a slight increase to 5.16, indicating a slight reversal in the trend of decreasing leverage.
The most recent data from 2023 shows a notable increase in the financial leverage ratio to 5.96, suggesting that General Electric Co. has increased its reliance on debt financing compared to the previous year. Overall, the trend in the financial leverage ratio indicates fluctuations in the company's debt management strategies over the period under consideration.
Peer comparison
Dec 31, 2023