Financial statement analysis and common stock valuation

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to GE Aerospace equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of GE Aerospace during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Analysis of Revenues

• Revenues as Reported

Analysis of Geographic Areas

GE Aerospace operates in 5 regions: U.S.; Europe; Asia; Americas; and Other Global.

• Area Asset Turnover
• Revenues
• Property, plant and equipment, net

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of GE Aerospace common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the GE Aerospace assets. Operating performance ratios describe the relationship between the GE Aerospace level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

An approach to decomposing GE Aerospace return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin

Income Statement

The income statement (statement of earnings) reports on the performance of GE Aerospace, the result of its operating activities.

Analysis of Profitability Ratios
Quarterly Data

Measures the income of GE Aerospace relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by GE Aerospace.

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by GE Aerospace.

Common Stock Valuation Ratios

Relative valuation technique determine the value of GE Aerospace by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)