GE Aerospace (NYSE:GE)

The annual financial data reveal several notable trends and shifts in the company's financial position over the five-year period.

Short-term Borrowings

There is a clear downward trend from 2020 to 2023, with a significant reduction from $4,778 million to $1,253 million, followed by a moderate increase to $2,039 million in 2024.

Accounts Payable

Accounts payable remained relatively stable initially but peaked at $18,644 million in 2022, then declined sharply to $7,909 million by 2024, indicating improved payment or reduced supplier obligations.

Progress Collections

After slight fluctuations, there was a peak in 2023 at $19,106 million, before a steep decline to $6,695 million in 2024, reflecting significant variability in collections from contracts in progress.

Contract Liabilities and Deferred Income

This item increased gradually until 2022, dropped substantially in 2023 to $571 million, then surged to $9,353 million in 2024, pointing to considerable changes in revenue recognition or contract terms across these years.

Sales Discounts and Allowances

Data is missing for the first four years but shows a high value of $3,475 million in 2024, indicating a new or expanded recognition of discounts and allowances in that year.

All Other Current Liabilities

A declining pattern from $16,600 million in 2020 to $4,921 million in 2024 is observed, indicating reductions in miscellaneous current obligations.

Liabilities of Businesses Held for Sale

Reported only in 2022 and 2023 with values around $1,900 million and $1,826 million respectively, suggesting business segments were designated for sale during this period, with no corresponding data thereafter.

Current Liabilities

The overall current liabilities decreased from $56,069 million in 2020 to $34,392 million in 2024, with minor fluctuations, showing an overall reduction in short-term obligations.

Deferred Income

Deferred income increased slightly until 2022 but then steadily declined to $1,013 million by 2024, potentially indicating accelerated revenue recognition.

Long-term Borrowings

A sharp decline in long-term debt is evident from $70,288 million in 2020 to $17,234 million in 2024, reflecting substantial debt repayment or restructuring.

Insurance Liabilities and Annuity Benefits

These liabilities decreased from $42,191 million in 2020 to $33,347 million in 2022, rose again in 2023 to $39,624 million, then declined to $36,209 million in 2024, indicating some volatility, perhaps tied to actuarial assumptions or business changes.

Non-current Compensation and Benefits

There is a pronounced decrease from $29,752 million in 2020 to $7,035 million in 2024, signaling significant changes in long-term employee benefit obligations.

All Other Liabilities

These steadily diminished from $16,077 million to $6,376 million over the period, showing a gradual reduction in other miscellaneous liabilities.

Liabilities of Discontinued Operations

Minor increases are observed from $200 million in 2020 to $1,317 million in 2024, reflecting continuing obligations related to discontinued business lines.

Non-current Liabilities

Non-current liabilities declined consistently from $160,309 million in 2020 to $69,184 million in 2024, demonstrating significant deleveraging and reduced long-term obligations.

Total Liabilities

Total liabilities declined substantially from $216,378 million in 2020 to $103,576 million in 2024, reflecting comprehensive liability reduction across both current and non-current categories.

Shareholders' Equity Components

Preferred Stock

Constant at $6 million until 2022, then no data reported for subsequent years.

Common Stock

Dropped sharply from $702 million to $15 million between 2020 and 2021 and remained constant, which may reflect reclassification or capitalization adjustments.

Accumulated Other Comprehensive Income (Loss)

This experienced notable volatility, moving from a negative balance of -$9,749 million in 2020 to a positive $1,582 million in 2021, then back to negative figures through 2024, indicating fluctuating unrealized gains or losses on investments or other comprehensive items.

Other Capital

Remained relatively stable with a slight downward trend from $34,307 million to $24,266 million by 2024.

Retained Earnings

Declined from $92,247 million in 2020 to $80,488 million in 2024, with minor fluctuations, pointing to periodic earnings retention and possible distributions.

Common Stock Held in Treasury

Consistently negative and relatively stable around -$80,000 million, showing ongoing treasury stock holdings with minimal change.

Shareholders’ Equity

Overall decreased from $35,552 million in 2020 to $19,342 million in 2024, reflecting accumulated changes in assets, liabilities, and equity transactions.

Noncontrolling Interests

Gradual decline from $1,521 million in 2020 to $222 million in 2024, indicating reduced third-party interests in subsidiaries.

Total Equity

Mirroring shareholders’ equity trends, total equity declined from $37,073 million to $19,564 million over the period, showing overall equity contraction.

Total Liabilities and Equity

The combined total decreased from $253,451 million in 2020 to $123,140 million in 2024, in line with reductions in liabilities and equity.

In summary, the data reveal a pronounced trend towards reduction in both short-term and long-term liabilities, including significant decreases in borrowings and other obligations. Equity has concurrently declined, though treasury stock holdings remain stable. Variability in contract-related accounts and comprehensive income components suggest shifts in operational and financial strategy, while the marked declines in employee benefits liabilities and insurance obligations reflect adjustments in non-current obligations. The liquidity position may have improved based on reductions in current liabilities, but the sharp declines in equity warrant monitoring for impacts on capital structure and financial stability.