GE Aerospace (GE)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	123,140,000	126,698,000	123,190,000	163,942,000	173,300,000	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
Total stockholders’ equity	US$ in thousands	19,342,000	18,874,000	18,598,000	29,855,000	27,403,000	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
Financial leverage ratio		6.37	6.71	6.62	5.49	6.32	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $123,140,000K ÷ $19,342,000K
= 6.37

The financial leverage ratio of GE Aerospace has fluctuated over the past few years, starting at 7.43 in March 2020 and peaking at 7.64 in September 2020. However, there has been a gradual decline in the ratio since then, reaching 4.93 by December 2021. This decrease in financial leverage indicates that the company has been reducing its reliance on debt to finance its operations. Despite a slight increase in the ratio to 6.71 by September 2024, it remains lower than previous levels, suggesting a more conservative capital structure. Overall, the trend in GE Aerospace's financial leverage ratio shows a strategic shift towards a more balanced mix of debt and equity in its capital structure.