GE Vernova LLC (GEV)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 50,853,000 | 48,052,000 | 47,872,000 | 47,194,000 |
| Total stockholders’ equity | US$ in thousands | 9,504,000 | 9,067,000 | 8,974,000 | 8,968,000 |
| Financial leverage ratio | 5.35 | 5.30 | 5.33 | 5.26 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $50,853,000K ÷ $9,504,000K
= 5.35
The financial leverage ratio of GE Vernova LLC has shown a consistent trend over the past year, ranging between 5.26 and 5.35. This indicates that the company relies heavily on debt to finance its operations and investments, as the ratio remains above 5, signaling a high level of financial leverage. Investors and creditors may view this as a risk factor, as higher leverage can amplify both returns and losses. It is essential for the company to carefully manage its debt levels to ensure sustainability and financial stability in the long term.
Peer comparison
Sep 30, 2024
Company name
Symbol
Financial leverage ratio
GE Vernova LLC
GEV
5.35
Emerson Electric Company
EMR
2.05
GE Aerospace
GE
5.96
Otis Worldwide Corp
OTIS
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