General Electric

Key Performance Metrics

  • The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin declined from -7.25% in 2017 to – 8.56% in 2021.
  • The average EBIT Margin for the period under analysis was 3.4%, with 2018 and 2020 performing the worst and best, respectively.
  • In the current year, General Electric was able to cover its interest liabilities -1.96 times in the current year- compared to 2017 when it was -1.81 times.
  • The Asset turnover stood at 0.39 times in 2021 from 0.32 in 2017, implying a high performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of General Electric has decreased year on year. The revenue decreased by 18.6% between 2017 and 2018 and a further 1.9% decrease was recorded between 2018 and 2019. There also occurred a decrease of 11.7% between 2020 and 2021 (the current period). 
  • General Electric’s performance in profitability looks bad as the return on capital employed also recorded bad performance during the period of analysis.

Capital Structure

  • General Electric is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been fluctuating year on year. The gearing position of the company appears to be high as it stood at 378% in the current year.

Source: General Electric Annual Report

Share This Showroom

Open chat
1
Need Help?
Powered by BFI Insights
Hello 👋
How can we assist you today?