GE Aerospace (GE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 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 |
The solvency ratios of GE Aerospace, as indicated by the data provided, show a consistently low level of indebtedness over the reporting periods.
1. Debt-to-assets ratio remained at 0.00 throughout all the quarters from March 31, 2020, to December 31, 2024. This implies that the company did not rely significantly on debt to finance its assets.
2. Debt-to-capital ratio also consistently stood at 0.00 across all the quarters from March 31, 2020, to December 31, 2024. This indicates that the company's capital structure was not heavily reliant on debt financing.
3. Debt-to-equity ratio was also reported as 0.00 for all quarters during the same period, suggesting that the company's equity far exceeded its debt levels.
4. The financial leverage ratio, which provides insight into the proportion of a company's assets that are financed by debt, experienced fluctuations but generally decreased over time. It started at 7.43 on March 31, 2020, and decreased to 6.37 by December 31, 2024. This trend indicates a reduction in the company's reliance on debt to finance its operations.
In conclusion, based on the solvency ratios analyzed, GE Aerospace demonstrated a strong financial position with minimal debt obligations relative to its assets, capital, and equity throughout the period under review. The decreasing trend in the financial leverage ratio further suggests an improvement in the company's ability to meet its financial obligations without excessive leverage.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 26.45 | 25.92 | 30.62 | 33.93 | 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 |
The interest coverage ratio for GE Aerospace experienced a significant improvement over the period from March 31, 2020, to December 31, 2024. The ratio started at negative values indicating that the company's operating income was insufficient to cover its interest expenses, reflecting a high level of financial risk.
However, there was a positive turnaround in the interest coverage ratio by March 31, 2022, where it stood at 4.62. This indicates that the company's operating income was 4.62 times its interest expenses, signaling a healthier financial position and reduced risk of default.
The trend continued to strengthen, with the interest coverage ratio increasing consistently in subsequent periods. By December 31, 2024, the ratio stood at 26.45, reflecting a significant improvement in the company's ability to meet its interest obligations from its operational earnings.
Overall, the analysis shows that GE Aerospace significantly improved its ability to cover its interest expenses over the period, indicating a more stable and financially sound position compared to the earlier periods of negative interest coverage ratios.