GE Aerospace (GE)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 163,045,000 | 156,662,000 | 163,006,000 | 164,472,000 | 188,851,000 | 180,877,000 | 185,540,000 | 191,961,000 | 198,874,000 | 237,133,000 | 237,559,000 | 245,164,000 | 256,211,000 | 254,315,000 | 256,487,000 | 262,021,000 | 265,177,000 | 263,009,000 | 312,109,000 | 315,082,000 |
| Total stockholders’ equity | US$ in thousands | 27,378,000 | 28,665,000 | 31,194,000 | 31,652,000 | 33,696,000 | 31,475,000 | 34,649,000 | 39,005,000 | 40,310,000 | 37,477,000 | 33,487,000 | 33,585,000 | 35,552,000 | 33,269,000 | 33,674,000 | 35,284,000 | 28,316,000 | 27,935,000 | 35,816,000 | 35,161,000 |
| Financial leverage ratio | 5.96 | 5.47 | 5.23 | 5.20 | 5.60 | 5.75 | 5.35 | 4.92 | 4.93 | 6.33 | 7.09 | 7.30 | 7.21 | 7.64 | 7.62 | 7.43 | 9.36 | 9.42 | 8.71 | 8.96 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $163,045,000K ÷ $27,378,000K
= 5.96
The financial leverage ratio measures the extent to which a company's operations are funded by debt as opposed to equity. In the case of General Electric Co., the financial leverage ratio has shown fluctuation over the past eight quarters, ranging from a low of 4.92 in Q1 2022 to a high of 5.96 in Q4 2023.
The increasing trend in the financial leverage ratio from Q1 2022 to Q4 2023 indicates that General Electric Co. has been relying more on debt to finance its operations during this period. A higher financial leverage ratio may suggest greater financial risk due to increased debt obligations and interest payments. It also indicates that the company has a higher proportion of debt in its capital structure compared to equity.
It is important for investors and stakeholders to closely monitor General Electric Co.'s financial leverage ratio to assess the company's ability to manage its debt levels effectively and maintain financial stability. High levels of debt can potentially impact the company's creditworthiness and overall financial health.
Peer comparison
Dec 31, 2023