Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
GE Aerospace, solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency profile indicates a strategic shift in capital structure characterized by increasing leverage coupled with a substantial improvement in debt-servicing capacity. While debt-related ratios rose in the latter half of the analyzed period, the company's ability to cover interest expenses expanded dramatically, suggesting that the increased borrowing is well-supported by operational earnings.
- Debt to Equity and Debt to Capital
- A period of deleveraging is observed from September 2022 through March 2024, with the Debt to Equity ratio declining from 0.97 to a low of 0.69. However, a sharp reversal occurred in June 2024, where the ratio climbed to 1.06 and remained elevated, ending at 1.12 by March 2026. The Debt to Capital ratio mirrors this trend, moving from a low of 0.41 in early 2023 to a sustained level of approximately 0.53 by the end of the period.
- Debt to Assets
- This metric remained the most stable among the solvency indicators, fluctuating within a narrow range between 0.13 and 0.18. The consistency of this ratio suggests that the total debt load has grown in proportion to the asset base, maintaining a steady risk profile relative to total corporate resources.
- Financial Leverage
- A consistent long-term upward trajectory is evident in financial leverage, which increased from 4.92 in March 2022 to 7.11 by March 2026. A significant acceleration in leverage is noted between March 2024 (5.49) and June 2024 (6.62), indicating an intensified use of debt to finance assets during this window.
- Interest Coverage
- The most notable improvement is seen in the interest coverage ratio, which transitioned from negative values in 2022—indicating an inability to cover interest expenses from operating income—to a strong positive position starting in late 2022. The ratio grew aggressively from 1.88 in December 2022 to a peak of 12.86 in December 2025, before settling at 12.53 in March 2026. This trend demonstrates a massive increase in the margin of safety for debt obligations, effectively offsetting the risks associated with the higher leverage ratios observed in the same period.
Debt Ratios
Coverage Ratios
Debt to Equity
GE Aerospace, debt to equity calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term borrowings | |||||||||||||||||||||||
| Long-term borrowings | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates a significant evolution in the company's solvency profile from March 2022 through March 2026, characterized by a transition from an equity-dominant capital structure to one where total debt exceeds shareholders' equity.
- Total Debt Trends
- A substantial reduction in total debt occurred between December 31, 2022, and March 31, 2023, where obligations decreased from 32,350 million USD to 22,421 million USD. Following this adjustment, debt levels remained relatively stable, fluctuating within a narrow range between approximately 18,800 million USD and 20,900 million USD through the remainder of the period.
- Shareholders' Equity Trends
- Equity exhibited a general downward trajectory, starting at 39,005 million USD in March 2022. A notable contraction is observed between March 31, 2024, and June 30, 2024, during which equity fell from 29,855 million USD to 18,598 million USD. From mid-2024 onward, equity levels stabilized, ending the period at 18,057 million USD.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio experienced three distinct phases. Initially, the ratio fluctuated between 0.86 and 0.97 through late 2022. A period of deleveraging followed, with the ratio reaching a low of 0.69 by March 31, 2024. However, a structural shift occurred in the second quarter of 2024, as the ratio rose to 1.06 and remained consistently above the 1.00 threshold through March 31, 2026, reaching a peak of 1.12.
The overall trend suggests that while total debt was successfully reduced and then held steady, the simultaneous and more aggressive decline in shareholders' equity has resulted in a higher leverage position, with the company now relying more heavily on debt relative to equity than it did at the start of the analyzed period.
Debt to Capital
GE Aerospace, debt to capital calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term borrowings | |||||||||||||||||||||||
| Long-term borrowings | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The solvency profile exhibits a transition characterized by a substantial reduction in absolute liabilities coupled with a more significant contraction in total capital, resulting in a shifting debt-to-capital ratio over the analyzed period.
- Total Debt Trends
- A consistent downward trajectory in total debt is observed, declining from 33,634 million US dollars in March 2022 to 20,277 million US dollars by March 2026. A notable reduction occurred between December 2022 and March 2023, where debt levels dropped from 32,350 million to 22,421 million US dollars. Following this period, debt levels stabilized, fluctuating within a narrow range between approximately 18,800 million and 20,900 million US dollars.
- Total Capital Dynamics
- Total capital experienced more aggressive contractions than total debt. Starting at 72,639 million US dollars in March 2022, capital decreased to 38,334 million US dollars by March 2026. Significant reductions are evident in two primary phases: first, between December 2022 and March 2023, and second, between March 2024 and June 2024, where capital fell from 50,380 million to 38,271 million US dollars.
- Debt to Capital Ratio Analysis
- The debt-to-capital ratio demonstrates three distinct phases. From March 2022 to December 2022, the ratio remained relatively stable, ranging between 0.46 and 0.49. A period of relative improvement followed from March 2023 to March 2024, with the ratio dipping to a low of 0.41. However, starting in June 2024, the ratio shifted upward, rising to 0.51 and eventually reaching 0.53 by March 2026. This late-stage increase indicates that total capital decreased at a faster rate than total debt during the final segments of the period, thereby increasing the proportion of debt relative to total capital.
Debt to Assets
GE Aerospace, debt to assets calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term borrowings | |||||||||||||||||||||||
| Long-term borrowings | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
An analysis of the solvency profile indicates a period of significant balance sheet restructuring followed by a phase of relative stability. The debt-to-assets ratio experienced an initial decline before stabilizing at a higher baseline relative to the 2023 lows, reflecting shifts in both total obligations and the underlying asset base.
- Total Debt Trends
- A substantial reduction in total debt occurred between March 2022 and March 2023, with obligations falling from 33,634 million USD to 22,421 million USD. Following this contraction, debt levels remained largely range-bound, fluctuating between approximately 18,887 million USD and 20,964 million USD through March 2026.
- Total Asset Dynamics
- Total assets exhibited a consistent downward trajectory throughout the analyzed period. A sharp contraction is observed between March 2024 and June 2024, where assets decreased from 163,942 million USD to 123,190 million USD. Following this event, asset values stabilized, oscillating within a narrow band between 123,140 million USD and 130,169 million USD.
- Debt to Assets Ratio Interpretation
- The ratio began at 0.18 in early 2022 and reached a minimum of 0.13 during 2023, a movement driven by the reduction of total debt occurring at a faster rate than the decline in assets. A reversal occurred in June 2024, where the ratio rose to 0.16. This increase was not driven by a surge in debt, but rather by the significant contraction of the total asset base. From June 2024 through March 2026, the ratio remained nearly constant at 0.16, indicating a stabilized capital structure.
Financial Leverage
GE Aerospace, financial leverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The solvency profile from March 2022 through March 2026 is characterized by a consistent increase in financial leverage, indicating a growing reliance on external financing relative to equity to support the asset base.
- Asset Base Trends
- Total assets exhibited a general downward trajectory, decreasing from 191,961 million US$ in March 2022 to 128,445 million US$ by March 2026. A significant contraction occurred between March 2024 and June 2024, where assets fell from 163,942 million US$ to 123,190 million US$, suggesting a substantial divestiture or structural reorganization of the balance sheet during that period.
- Equity Position
- Shareholders' equity experienced a persistent and significant decline, falling from 39,005 million US$ in March 2022 to 18,057 million US$ in March 2026. A sharp reduction is observed in June 2024, where equity dropped to 18,598 million US$ from 29,855 million US$ in the preceding quarter, mirroring the timing of the asset contraction.
- Financial Leverage Ratio
- The financial leverage ratio demonstrates a steady upward trend, rising from 4.92 in March 2022 to 7.11 by March 2026. While the ratio fluctuated between 4.92 and 5.96 from March 2022 to December 2023, it accelerated upward starting in June 2024, reaching 6.62 and continuing to climb through the end of the period. This expansion in leverage is driven by the equity base contracting more aggressively than the total asset base, resulting in a higher proportion of debt-funded assets and an increased financial risk profile.
Interest Coverage
GE Aerospace, interest coverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) attributable to the Company | |||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||
| Less: Net income (loss) from discontinued operations, net of taxes | |||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||
| Add: Interest and other financial charges | |||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of solvency indicators reveals a significant transformation in the capacity to service financial obligations over the observed period. A transition is evident from a state of operating losses and negative coverage in early 2022 to a position of robust solvency and sustained financial health through early 2026.
- Earnings Before Interest and Tax (EBIT) Performance
- Operating earnings exhibited substantial volatility during the initial phase, moving from a deficit of 119 million USD in March 2022 to a peak of 6,761 million USD by March 2023. Following this peak, EBIT stabilized, fluctuating between a low of 1,657 million USD and a high of 3,101 million USD. This stabilization indicates a consistent and reliable generation of operating profit to cover fixed financial costs.
- Interest and Financial Charge Dynamics
- A general downward trend in interest and other financial charges is observed. Costs declined from a peak of 417 million USD in December 2022 to a period low of 158 million USD in June 2025. The reduction in these charges, combined with rising EBIT, has exerted a compounding positive effect on the company's solvency metrics.
- Interest Coverage Ratio Trends
- The interest coverage ratio shifted from a critical state in early 2022, where negative ratios indicated an inability to cover interest payments from operating profits, to a strong upward trajectory. After crossing into positive territory in December 2022 with a ratio of 1.88, the metric expanded rapidly, reaching a peak of 12.86 in December 2025. From March 2023 onward, the ratio remained consistently above 6.0, signaling a high margin of safety and a diminished risk of default on interest obligations.