Debt to Equity
since 2005
Calculation
GE Aerospace, debt to equity, long-term trends, calculation
| Debt to equity | = | Total borrowings1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2025 | 1.10 | = | 20,494) | ÷ | 18,677) |
| Dec 31, 2024 | 1.00 | = | 19,273) | ÷ | 19,342) |
| Dec 31, 2023 | 0.77 | = | 20,964) | ÷ | 27,378) |
| Dec 31, 2022 | 0.89 | = | 32,350) | ÷ | 36,366) |
| Dec 31, 2021 | 0.87 | = | 35,185) | ÷ | 40,310) |
| Dec 31, 2020 | 2.11 | = | 75,066) | ÷ | 35,552) |
| Dec 31, 2019 | 3.21 | = | 90,882) | ÷ | 28,316) |
| Dec 31, 2018 | 3.55 | = | 109,958) | ÷ | 30,981) |
| Dec 31, 2017 | 2.09 | = | 134,591) | ÷ | 64,263) |
| Dec 31, 2016 | 1.80 | = | 136,211) | ÷ | 75,828) |
| Dec 31, 2015 | 2.02 | = | 198,276) | ÷ | 98,274) |
| Dec 31, 2014 | 2.85 | = | 364,980) | ÷ | 128,159) |
| Dec 31, 2013 | 2.93 | = | 383,040) | ÷ | 130,566) |
| Dec 31, 2012 | 3.37 | = | 414,060) | ÷ | 123,026) |
| Dec 31, 2011 | 3.89 | = | 453,443) | ÷ | 116,438) |
| Dec 31, 2010 | 4.02 | = | 478,640) | ÷ | 118,936) |
| Dec 31, 2009 | 4.35 | = | 510,192) | ÷ | 117,291) |
| Dec 31, 2008 | 5.00 | = | 523,762) | ÷ | 104,665) |
| Dec 31, 2007 | 4.45 | = | 514,116) | ÷ | 115,559) |
| Dec 31, 2006 | 3.85 | = | 432,957) | ÷ | 112,314) |
| Dec 31, 2005 | 3.39 | = | 370,437) | ÷ | 109,354) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The relationship between total borrowings and shareholders’ equity exhibited significant fluctuations between 2005 and 2025. Initially, total borrowings increased substantially while shareholders’ equity experienced more moderate growth, resulting in a rising debt-to-equity ratio. Following 2008, a period of debt reduction and, at times, equity decline commenced, leading to a complex pattern of ratio changes. More recently, the company has demonstrated a trend towards lower leverage, although some increases were observed in the latter years of the period.
- Debt-to-Equity Ratio: Overall Trend
- The debt-to-equity ratio began at 3.39 in 2005 and generally increased, peaking at 5.00 in 2008. This indicates a growing reliance on debt financing relative to equity. From 2009 through 2015, the ratio generally decreased, suggesting a focus on deleveraging. However, the ratio increased again between 2015 and 2018, before declining sharply to 0.87 in 2020. A slight increase to 0.89 was observed in 2021, followed by a further decrease to 0.77 in 2022, and then increases to 1.00 in 2023 and 1.10 in 2025.
- Debt-to-Equity Ratio: Period 2005-2008
- During this period, total borrowings increased from US$370,437 million to US$523,762 million, while shareholders’ equity grew from US$109,354 million to US$104,665 million. The net effect was a substantial increase in the debt-to-equity ratio, reflecting increased financial leverage. This suggests the company was actively utilizing debt to fund growth or operations.
- Debt-to-Equity Ratio: Period 2009-2015
- From 2009 to 2015, total borrowings decreased from US$510,192 million to US$198,276 million, while shareholders’ equity experienced fluctuations, ending at US$98,274 million. This period demonstrates a significant reduction in debt, leading to a lower debt-to-equity ratio. This suggests a strategic shift towards reducing financial risk and improving the company’s capital structure.
- Debt-to-Equity Ratio: Period 2016-2025
- The period from 2016 to 2025 shows a more volatile pattern. Borrowings continued to decline initially, reaching a low of US$35,185 million in 2021, while equity also fluctuated. The ratio reached a low of 0.87 in 2020. However, in the final years, both borrowings and equity experienced modest increases, resulting in a rise in the debt-to-equity ratio to 1.10 in 2025. This suggests a potential shift in financing strategy or increased investment in projects requiring debt funding.
The substantial decrease in the debt-to-equity ratio between 2008 and 2020 indicates a significant improvement in the company’s financial leverage. The recent increases in both debt and equity, and the corresponding rise in the ratio, warrant further investigation to understand the underlying drivers and potential implications for the company’s financial health.
Comparison to Competitors
GE Aerospace, debt to equity, long-term trends, comparison to competitors
| GE Aerospace | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 1.10 | 9.92 | — | — | — | 3.23 | — |
| Dec 31, 2024 | 1.00 | — | 1.97 | 0.50 | 1.67 | 3.20 | 0.69 |
| Dec 31, 2023 | 0.77 | — | 1.94 | 0.49 | 1.29 | 2.55 | 0.73 |
| Dec 31, 2022 | 0.89 | — | 2.33 | 0.51 | 1.17 | 1.68 | 0.44 |
| Dec 31, 2021 | 0.87 | — | 2.29 | 0.52 | 1.06 | 1.07 | 0.43 |
| Dec 31, 2020 | 2.11 | — | 2.42 | 0.54 | 1.28 | 2.02 | 0.44 |
| Dec 31, 2019 | 3.21 | — | 2.58 | 0.52 | 0.87 | 4.05 | 1.04 |
| Dec 31, 2018 | 3.55 | 40.85 | 2.60 | 0.47 | 0.89 | 9.04 | 1.18 |
| Dec 31, 2017 | 2.09 | 31.32 | 2.55 | 0.45 | 1.04 | — | 0.93 |
| Dec 31, 2016 | 1.80 | 12.18 | 2.80 | 0.56 | 0.81 | 9.45 | 0.87 |
| Dec 31, 2015 | 2.02 | 1.57 | 2.57 | 0.56 | 0.66 | 4.62 | 0.75 |
| Dec 31, 2014 | 2.85 | 1.05 | 2.35 | 0.57 | 0.49 | 1.81 | 0.63 |
| Dec 31, 2013 | 2.93 | 0.65 | 1.81 | 0.57 | 0.51 | 1.25 | 0.64 |
| Dec 31, 2012 | 3.37 | 1.77 | 2.29 | 0.72 | 0.58 | 157.90 | 0.90 |
| Dec 31, 2011 | 3.89 | 3.52 | 2.69 | 0.51 | 0.70 | 6.45 | 0.47 |
| Dec 31, 2010 | 4.02 | 4.49 | 2.63 | 0.47 | 0.62 | 1.35 | 0.48 |
| Dec 31, 2009 | 4.35 | 6.07 | 3.62 | 0.51 | 0.86 | 1.22 | 0.49 |
| Dec 31, 2008 | 5.00 | — | 5.84 | 0.68 | 1.17 | 1.24 | 0.72 |
| Dec 31, 2007 | 4.45 | 0.91 | 3.20 | 0.66 | 0.83 | 0.44 | 0.43 |
| Dec 31, 2006 | 3.85 | 2.01 | 3.98 | 0.63 | 0.52 | 0.64 | 0.46 |
| Dec 31, 2005 | 3.39 | 0.97 | 3.05 | 0.65 | 0.45 | 0.61 | 0.48 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
GE Aerospace, debt to equity, long-term trends, comparison to sector (capital goods)
| GE Aerospace | Capital Goods | |
|---|---|---|
| Dec 31, 2025 | 1.10 | — |
| Dec 31, 2024 | 1.00 | 1.54 |
| Dec 31, 2023 | 0.77 | 1.54 |
| Dec 31, 2022 | 0.89 | 1.33 |
| Dec 31, 2021 | 0.87 | 1.26 |
| Dec 31, 2020 | 2.11 | 1.75 |
| Dec 31, 2019 | 3.21 | 2.08 |
| Dec 31, 2018 | 3.55 | 2.03 |
| Dec 31, 2017 | 2.09 | 1.74 |
| Dec 31, 2016 | 1.80 | 1.60 |
| Dec 31, 2015 | 2.02 | 1.64 |
| Dec 31, 2014 | 2.85 | 2.06 |
| Dec 31, 2013 | 2.93 | 2.00 |
| Dec 31, 2012 | 3.37 | 2.56 |
| Dec 31, 2011 | 3.89 | 3.04 |
| Dec 31, 2010 | 4.02 | 3.10 |
| Dec 31, 2009 | 4.35 | 3.46 |
| Dec 31, 2008 | 5.00 | 4.19 |
| Dec 31, 2007 | 4.45 | 3.21 |
| Dec 31, 2006 | 3.85 | 3.02 |
| Dec 31, 2005 | 3.39 | 2.53 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
GE Aerospace, debt to equity, long-term trends, comparison to industry (industrials)
| GE Aerospace | Industrials | |
|---|---|---|
| Dec 31, 2025 | 1.10 | — |
| Dec 31, 2024 | 1.00 | 1.38 |
| Dec 31, 2023 | 0.77 | 1.52 |
| Dec 31, 2022 | 0.89 | 1.42 |
| Dec 31, 2021 | 0.87 | 1.37 |
| Dec 31, 2020 | 2.11 | 1.82 |
| Dec 31, 2019 | 3.21 | 1.82 |
| Dec 31, 2018 | 3.55 | 1.85 |
| Dec 31, 2017 | 2.09 | 1.65 |
| Dec 31, 2016 | 1.80 | 1.54 |
| Dec 31, 2015 | 2.02 | 1.51 |
| Dec 31, 2014 | 2.85 | 1.89 |
| Dec 31, 2013 | 2.93 | 1.79 |
| Dec 31, 2012 | 3.37 | 2.29 |
| Dec 31, 2011 | 3.89 | 2.60 |
| Dec 31, 2010 | 4.02 | 2.68 |
| Dec 31, 2009 | 4.35 | 3.01 |
| Dec 31, 2008 | 5.00 | 3.54 |
| Dec 31, 2007 | 4.45 | 2.73 |
| Dec 31, 2006 | 3.85 | 2.49 |
| Dec 31, 2005 | 3.39 | 2.42 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).