Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
GE Aerospace, long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 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).
The financial data reveals distinct patterns and fluctuations in the efficiency ratios related to asset and equity utilization over the five-year period.
- Net Fixed Asset Turnover
- This ratio increased sharply from 1.75 in 2020 to a peak of 6.06 in 2023, indicating improved efficiency in utilizing fixed assets to generate revenue. However, a slight decline to 5.65 occurred in 2024, suggesting some moderation in asset use effectiveness.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- A similar upward trend is observable, rising from 1.63 in 2020 to 5.17 in 2023. This metric, which accounts for leased assets, also experienced a decrease to 4.83 in 2024, mirroring the pattern in net fixed asset turnover but at somewhat lower levels.
- Total Asset Turnover
- This ratio showed a steady increase from 0.29 in 2020 to 0.40 in 2023, indicating better overall asset utilization. However, in 2024, the ratio reverted to the initial level of 0.29, highlighting a reduction in efficiency in the most recent year.
- Equity Turnover
- The equity turnover ratio displayed more volatility. It decreased from 2.05 in 2020 to 1.76 in 2021, then increased to 2.36 in 2023, the highest point in the period. In 2024, it declined again to 1.82, showing uneven performance in using shareholders’ equity to generate revenue.
Overall, the data reflects an improvement in asset utilization efficiency from 2020 through 2023, followed by a retraction in 2024 across all turnover metrics. The declines in 2024 suggest possible challenges affecting asset and equity efficiency in the most recent year, warranting attention for further analysis.
Net Fixed Asset Turnover
GE Aerospace, net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of equipment and services | ||||||
| Property, plant and equipment, net, excluding ROU operating lease assets | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 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).
1 2024 Calculation
Net fixed asset turnover = Sales of equipment and services ÷ Property, plant and equipment, net, excluding ROU operating lease assets
= ÷ =
2 Click competitor name to see calculations.
- Sales of equipment and services
- The sales figures exhibit fluctuations over the analyzed period. Initially, there was a slight decline from approximately $73.0 billion in 2020 to $71.1 billion in 2021, followed by a rebound to about $73.6 billion in 2022. However, a notable decrease occurs in 2023, where sales dropped to roughly $64.6 billion, and this downward trend continues sharply into 2024, reaching approximately $35.1 billion. This pattern suggests volatility and a significant contraction in the most recent year.
- Property, plant and equipment, net, excluding ROU operating lease assets
- This asset category shows a consistent and substantial decline across the years. Starting at about $41.7 billion in 2020, the net value of property, plant, and equipment fell dramatically to $13.0 billion in 2021 and continued to decrease annually to $6.2 billion by 2024. This trend indicates a significant reduction in the company’s tangible fixed assets, which could reflect asset disposals, impairments, or operational restructuring.
- Net fixed asset turnover
- The net fixed asset turnover ratio shows an increasing trend from 1.75 in 2020 to a peak of 6.06 in 2023, followed by a slight decrease to 5.65 in 2024. This ratio measures how effectively the company utilizes its fixed assets to generate sales. The sharp increase through 2023 corresponds inversely with the reduction in asset base, suggesting improved efficiency or higher sales relative to assets. The slight decline in 2024 may reflect the pronounced drop in sales in that year, affecting turnover despite the low asset base.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
GE Aerospace, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of equipment and services | ||||||
| Property, plant and equipment, net, excluding ROU operating lease assets | ||||||
| ROU operating lease assets | ||||||
| Property, plant and equipment, net, excluding ROU operating lease assets (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
Based on: 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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales of equipment and services ÷ Property, plant and equipment, net, excluding ROU operating lease assets (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several significant trends in sales, asset levels, and asset utilization over the five-year period.
- Sales of Equipment and Services
- Sales exhibited an initial slight decline from 73,022 million USD in 2020 to 71,090 million USD in 2021, followed by a modest recovery to 73,602 million USD in 2022. Subsequently, sales decreased markedly to 64,565 million USD in 2023 and experienced a further substantial drop to 35,121 million USD in 2024. This pattern suggests a pronounced reduction in revenue generation toward the end of the period, indicating potential challenges in market demand, operational capacity, or strategic shifts.
- Property, Plant and Equipment, Net
- There was a steep and consistent decline in the net value of property, plant, and equipment from 44,662 million USD in 2020 to 7,277 million USD in 2024. The sharpest reduction occurred between 2020 and 2021, dropping by nearly two-thirds, and this downward trend continued gradually through to 2024. This decline may reflect asset disposals, impairments, or changes in lease accounting.
- Net Fixed Asset Turnover
- The ratio of net fixed asset turnover improved significantly over the period, increasing from 1.63 in 2020 to a peak of 5.17 in 2023, before a slight decrease to 4.83 in 2024. This indicates substantially enhanced efficiency in utilizing fixed assets to generate sales despite the reduction in asset base. The peak in 2023 corresponds to the period prior to the sharpest sales decline, suggesting an improvement in operational efficiency until external factors potentially affected sales volume.
Overall, the data depicts a scenario of diminishing asset levels and drastically lower sales toward the end of the timeframe, albeit with temporarily improved asset turnover efficiency. The strong rise in turnover ratio despite declining asset values implies a leaner asset structure or improved utilization, but the severe sales drop raises concerns about sustainability and market conditions impacting performance in the latter years.
Total Asset Turnover
GE Aerospace, total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of equipment and services | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 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).
1 2024 Calculation
Total asset turnover = Sales of equipment and services ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Sales of equipment and services
- The sales figures demonstrate a declining trend over the observed period. Beginning at 73,022 million US dollars in 2020, sales slightly decreased to 71,090 million in 2021, followed by a minor rebound to 73,602 million in 2022. Subsequently, sales experienced a significant drop, falling to 64,565 million in 2023 and ultimately registering a steep decline to 35,121 million by the end of 2024. This indicates a substantial contraction in revenue from equipment and services over the five-year span.
- Total assets
- Total assets show a consistent decreasing pattern throughout the reported years. From a high of 253,452 million US dollars in 2020, assets diminished steadily each year to 198,874 million in 2021, 187,788 million in 2022, 163,045 million in 2023, and further down to 123,140 million by 2024. This suggests ongoing asset reduction or disposal, which may impact operational capacity or reflect strategic restructuring.
- Total asset turnover
- The total asset turnover ratio, an efficiency metric indicating how effectively assets generate sales, reveals mixed trends. The ratio improved from 0.29 in 2020 to a peak of 0.40 in 2023, reflecting enhanced asset utilization during this period despite declining absolute sales and asset values. However, in 2024, the ratio decreased to 0.29, returning to the initial level observed in 2020. This drop corresponds with significant reductions in sales and total assets, signaling a relative decline in efficiency or operational challenges in the most recent year.
Equity Turnover
GE Aerospace, equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales of equipment and services | ||||||
| Shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Capital Goods | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 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).
1 2024 Calculation
Equity turnover = Sales of equipment and services ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Sales of equipment and services
- The sales figures demonstrate a fluctuating trend over the five-year period. Starting at 73,022 million US dollars in 2020, sales slightly declined to 71,090 million in 2021, followed by a recovery to 73,602 million in 2022. In 2023, a significant decline to 64,565 million is observed, with a further substantial reduction to 35,121 million in 2024. This represents an overall downward trend, particularly steep in the two most recent years, indicating possible challenges in market demand or operational issues.
- Shareholders’ equity
- Shareholders’ equity rose from 35,552 million US dollars in 2020 to a peak of 40,310 million in 2021, suggesting a period of capital growth or retained earnings accumulation. However, equity then declined to 36,366 million in 2022 and dropped more sharply in subsequent years to 27,378 million in 2023 and 19,342 million in 2024. This decrease could reflect losses, dividend payouts, or asset write-downs, which may be related to the declining sales trend.
- Equity turnover
- The equity turnover ratio, indicating the efficiency of the company in generating sales from its equity base, shows variability throughout the years. It declined from 2.05 in 2020 to 1.76 in 2021, then improved to 2.02 in 2022, reaching a peak of 2.36 in 2023. Despite this improvement in 2023, the ratio fell again to 1.82 in 2024. This pattern suggests fluctuating operational efficiency; the sharp decrease in sales and equity during the last two years impacted this ratio noticeably in 2024.