GE Aerospace (GE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios for General Electric Co. indicate its ability to meet its long-term financial obligations. Looking at the data over the past eight quarters, the Debt-to-assets ratio has remained relatively stable, ranging from 0.14 to 0.17. This ratio suggests that, on average, 15% to 17% of the company's total assets are financed by debt.
The Debt-to-capital ratio has also shown stability, fluctuating between 0.41 and 0.49. This ratio indicates that, on average, 41% to 49% of the company's capital structure is comprised of debt.
The Debt-to-equity ratio has exhibited more variation, with values ranging from 0.71 to 0.97. This ratio shows the proportion of the company's financing that comes from debt compared to equity, with the values suggesting that debt has been the dominant source of financing, especially in quarters where the ratio is closer to 1.
The Financial leverage ratio, representing the extent to which the company relies on debt to fund its operations, has demonstrated some fluctuations between 4.92 and 5.96. A higher financial leverage ratio indicates a higher level of debt relative to equity.
Overall, the solvency ratios for General Electric Co. suggest that the company has been consistently utilizing debt as a significant source of funding, as indicated by the Debt-to-capital and Debt-to-equity ratios. The stability in these ratios over the quarters indicates a managed approach to debt levels, although the company should continue to monitor these ratios to ensure sustainable long-term financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 33.24 | 34.27 | 31.13 | 28.73 | 22.52 | 20.69 | 12.50 | 4.62 | -0.20 | -0.49 | -1.17 | -2.78 | -2.44 | -4.26 | -3.61 | -2.68 | -2.45 | 2.23 | -2.30 | 2.94 |
Interest coverage measures a company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio indicates a company is more capable of meeting its interest payments. General Electric Co.'s interest coverage has shown an improving trend throughout the quarters presented in the table. In Q4 2023, the interest coverage ratio stood at 3.63, reflecting the company's ability to cover its interest payments 3.63 times from its operating income. This represents a positive sign of financial health and suggests a lower risk of default on its debt obligations. The consistent increase in the interest coverage ratio indicates improved financial performance and stability for General Electric Co. over the analyzed period.