General Electric

Key Performance Metrics

  • The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 10.08% in 2019 to 7.80% in 2023.
  • The average EBIT Margin for the period under analysis was 15.84%, with 2019 and 2020 performing the worst and best, respectively.
  • In the current year, GENERAL ELECTRIC was able to cover its interest liabilities 2.71 times – compared to 2019 when it was 2.14 times.
  • The Asset turnover stood at 0.28 times in 2023 from 0.24 in 2019, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of GENERAL ELECTRIC has fluctuated year on year. The revenue increased by 1.04% between 2019 and 2020 and a further 10.48% increase was recorded between 2021 and 2022. There also occurred an increase of 10.43% between 2022 and 2023 (the current period).
  • General Electric’s performance in profitability looks good as the return on capital employed also recorded better performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks poor, as current ratio increased from 0.81:1 to 0.84:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.

Capital Structure

  • General Electric is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been mixed year on year. The gearing position of the company appears to be high as it stood at 134% in the current year. 

Source: General Electric Annual Report

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