GE Aerospace (NYSE:GE)

The financial data over the years reveals notable trends in sales of equipment and services as well as net earnings attributable to the company. A comprehensive review shows variability with discernible periods of growth, decline, and recovery.

Sales of equipment and services

Sales generally increased from 2005, starting at approximately $92.6 billion, peaking near $113.5 billion in 2018. This growth was interrupted in 2019 with a significant decline to $87.5 billion, followed by a sharp deteriorating trend down to $35.1 billion in 2024. The earlier growth phase from 2005 to 2018 indicates steady expansion with occasional fluctuations, while the post-2018 period reflects a substantial contraction possibly due to external or industry-specific challenges.

Net earnings (loss) attributable to the Company

Net earnings showed an upward trend in the earlier years, with peaks such as $22.2 billion in 2007 and $15.2 billion in 2014. However, the data also reveals intermittent losses, notably a large loss of $6.1 billion in 2015 and further significant negative results in 2017 and 2018, with losses of $5.8 billion and $22.4 billion respectively. After 2018, profitability shows signs of recovery with positive figures in several years, reaching $9.5 billion in 2023, yet the profit level remains volatile, showing a decrease again to $6.6 billion in 2024. This pattern indicates cyclical earnings performance with periods of financial stress and subsequent recovery attempts.

Overall, the financial trends suggest a period of growth until roughly 2018, followed by challenges that affected both sales and profitability. The marked decline in sales post-2018 corresponds with fluctuations in net earnings, underscoring a period of financial instability and potential restructuring or market pressures impinging on operational performance.

The financial data reveals notable trends in both current assets and total assets over the analyzed periods.

Current Assets

Data for current assets is only available from 2021 onwards. Observing these values, there is a decline from US$90,016 million in 2021 to US$37,635 million in 2024. This represents a significant reduction of more than 58% over the four-year span, suggesting a potential decrease in liquidity or short-term resources available for operational needs.

Total Assets

Total assets show an overall downward trend from 673,342 million in 2005 to 123,140 million in 2024. The peak appears to be around 2007-2008 with values close to 795,000 million, followed by a gradual but persistent decline.

Significant decreases occur starting from 2013, where total assets reduce from 656,560 million down to 187,788 million by 2022, continuing downward to 123,140 million in 2024. This sustained decline indicates a substantial shrinkage of the company's asset base over the latter period, possibly resulting from asset disposals, impairments, or major restructuring efforts.

The most pronounced contractions occur after 2014, highlighting an intensified reduction phase. This could imply strategic shifts or challenging market conditions impacting asset holdings.

Overall, the analysis indicates that the company experienced a pronounced contraction in both current and total assets, particularly after 2013. The reduction in current assets in recent years also raises considerations about short-term financial flexibility. These trends warrant further investigation into underlying causes, such as operational changes, market dynamics, or financial strategies influencing asset management.

The financial data reveals several notable trends regarding liabilities, borrowings, and shareholders' equity over the period analyzed.

Current Liabilities

Current liabilities show data only from the later years, beginning near US$ 77.6 billion and then fluctuating downward to US$ 34.4 billion by the most recent date. This suggests a reduction in short-term obligations during the latest years under review.

Total Liabilities

Total liabilities initially increased from approximately US$ 556 billion to a peak around US$ 684 billion. Subsequently, there is a consistent and substantial decrease to about US$ 104 billion by the final period. This indicates a significant deleveraging or repayment of total liabilities occurring over time, particularly pronounced in the last decade.

Total Borrowings

Borrowings mirror the trend seen in total liabilities, rising from about US$ 370 billion to a high point around US$ 524 billion before steadily declining to roughly US$ 19 billion. This reduction suggests active management of debt and a strong focus on decreasing reliance on borrowed funds.

Shareholders' Equity

Shareholders’ equity remains relatively stable, ranging between US$ 109 billion and US$ 130 billion in earlier years, then declining significantly to approximately US$ 19 billion by the end of the period. The sharp decline in equity, especially after the midpoint, could denote sustained losses, dividend payments in excess of income, share repurchases, or other factors negatively impacting net assets.

Overall, the data reflects a strategic reduction in liabilities and borrowings alongside a diminishing equity base in recent years. This pattern may highlight attempts to strengthen the balance sheet by lowering debt, albeit accompanied by a decrease in net worth that warrants further examination of company profitability and capital management policies.

The analysis of cash flow activities over the examined period reveals notable fluctuations and underlying trends in operating, investing, and financing activities.

Cash from Operating Activities

The cash generated from operating activities exhibited initial growth from 33,787 million US dollars in 2005 to a peak of 47,841 million in 2008. Subsequently, a downward trend is observed, reaching a significant low point of 3,597 million in 2020. Post-2020, a moderate recovery occurs, increasing to 5,817 million by 2024. This pattern indicates increasing operational cash inflows until the financial crisis around 2008, followed by fluctuating and generally lower inflows in recent years.

Cash (Used For) From Investing Activities

Investing cash flows show high variability with negative outflows dominating early years from 2005 through 2008, reaching lows such as -69,701 million in 2007. From 2009 onwards, the trend reverses with substantial positive cash inflows peaking at 62,613 million in 2015. However, the post-2015 period shows volatility with alternating positive and negative flows, ending with a slight negative outflow of -556 million in 2024. These fluctuations suggest significant asset purchases or sales and varying investment strategies over time.

Cash from Financing Activities

Financing activities reveal an initial increase from -6,597 million in 2005 to a positive peak of 28,364 million in 2007. Thereafter, the trend reverses sharply with major negative outflows from 2009 to 2016, reaching extremes such as -89,920 million in 2016. Although some improvement is noted in recent years, substantial negative financing cash flows persist, ending around -6,628 million in 2024. This pattern may indicate debt repayments, dividend payments, or share repurchase programs predominantly occurring in the latter part of the period.

Overall, the data reflects a period of strong operational performance before 2008, followed by challenges affecting cash generation. Investment activities show cyclical behavior with large swings indicating strategic asset management. Financing activities illustrate significant deleveraging or shareholder returns in recent years. The interplay between these activities suggests the company has been actively managing its capital structure and investments to adapt to changing financial conditions.

The basic and diluted earnings per share (EPS) exhibited considerable variability over the examined period. Initially, both metrics showed an upward trend from 2005 to 2007, with values rising from approximately 12.4 to 17.44 US dollars, indicating strong profitability growth. However, a downward trend followed starting in 2008, with EPS values generally declining and showing negative earnings between 2014 and 2019. This decline reached its most significant negative point around 2018, with basic EPS at -20.96 US dollars, reflecting substantial operational or financial challenges during those years. Notably, there was some recovery beginning in 2020, with EPS gradually returning to positive territory by 2023 and 2024, indicating a possible turnaround in financial performance.

The dividend per share (DPS) also demonstrated substantial fluctuations. From 2005 to 2009, dividends initially increased from 7.28 to 9.92 US dollars, but then there was a marked reduction after 2009, with dividends decreasing sharply and remaining at very low levels between 2015 and 2023, mostly around 0.32 US dollars per share. In 2024, a modest increase to 1.12 US dollars per share was observed, which could signal renewed confidence in financial stability or a strategy shift regarding shareholder returns.

Trends in Earnings per Share

After a period of growth before 2008, the company experienced significant earnings volatility and sustained losses during the mid-2010s, especially notable in 2018 with pronounced negative EPS. Recovery signs appeared post-2020 with consistent positive earnings resuming by 2023 and 2024.

Dividend per Share Patterns

Dividends were relatively high and increased until 2009, followed by a significant reduction and prolonged low payout phase. The slight dividend increase in 2024 may suggest a cautious resumption of returning value to shareholders.

Overall Financial Insights

The combined EPS and dividend trends indicate a cycle of strong profitability, notable financial distress or restructuring, and gradual recovery. The decline in dividend payments aligns with the periods of negative or low earnings, consistent with prudent capital allocation during financially strained periods.