Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
GE Aerospace pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Analysis of Debt
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to GE Aerospace for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
GE Aerospace, profitability 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).
An analysis of the profitability metrics reveals a significant transition from negative returns and compressed margins in 2022 to a period of sustained expansion and high profitability by early 2026. The overall trend is characterized by a sharp recovery beginning in late 2022 and a subsequent acceleration in operational efficiency throughout 2024 and 2025.
- Profit Margin Trends
- Gross profit margin remained relatively stable around 24% throughout 2022 and early 2023, before experiencing a notable upward trajectory starting in mid-2024. This metric peaked at 32.16% in September 2025, reflecting enhanced production efficiency or pricing power.
- Operating profit margin exhibited more dramatic growth, ascending from a low of 6.05% in December 2022 to a peak of 26.24% in September 2025. This suggests a significant reduction in operating expenses relative to revenue or a substantial increase in operational leverage.
- Net profit margin transitioned from deep negative territory in 2022, reaching a low of -8.10% in September 2022, to a consistent positive range. Despite a temporary dip to 5.96% in March 2024, the margin climbed steadily to peak at 20.57% in December 2025.
- Return Metrics
- Return on Equity (ROE) demonstrated the most volatile and aggressive growth. After reaching a nadir of -18.56% in September 2022, ROE surged to peak levels, ending the period at 47.79% in March 2026. A notable contraction occurred in March 2024 (11.77%), followed by a rapid and continuous ascent.
- Return on Assets (ROA) followed a similar trajectory but with less volatility. ROA moved from negative values in 2022 to a consistent upward trend starting in March 2024 (2.14%), eventually reaching 6.72% by March 2026, indicating improved asset utilization and overall corporate profitability.
The convergence of rising gross, operating, and net margins alongside expanding ROE and ROA indicates a comprehensive improvement in the financial health of the entity. The period between March 2024 and December 2025 represents the most significant phase of margin expansion and value creation.
Return on Sales
Return on Investment
Gross Profit Margin
GE Aerospace, gross profit margin 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) | |||||||||||||||||||||||
| Gross profit from sales | |||||||||||||||||||||||
| Sales of equipment and services | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross profit from salesQ1 2026
+ Gross profit from salesQ4 2025
+ Gross profit from salesQ3 2025
+ Gross profit from salesQ2 2025)
÷ (Sales of equipment and servicesQ1 2026
+ Sales of equipment and servicesQ4 2025
+ Sales of equipment and servicesQ3 2025
+ Sales of equipment and servicesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit margin exhibited a distinct three-phase trajectory characterized by initial stability, a period of contraction, and a subsequent structural shift toward significantly higher profitability levels. While absolute sales volumes fluctuated, the efficiency of converting revenue into gross profit improved markedly in the latter half of the analyzed period.
- Initial Stability and Margin Compression (March 2022 – December 2023)
- During 2022, the gross profit margin remained relatively stable, oscillating within a narrow band between 24.26% and 25.22%. However, a downward trend emerged throughout 2023, with margins steadily declining from 24.24% in March to a period low of 21.95% by December 31, 2023. This contraction occurred despite sales of equipment and services maintaining a strong trajectory, peaking at 18,516 million USD in the same quarter.
- Structural Pivot and Rapid Expansion (March 2024 – December 2024)
- A significant shift in the financial profile is observed starting in early 2024. A sharp reduction in total sales—dropping from 18,516 million USD in December 2023 to 8,076 million USD in March 2024—coincided with a rapid acceleration in margin expansion. The gross profit margin rose consistently every quarter throughout 2024, ascending from 22.97% in March to 30.79% by December 31, 2024. This indicates a transition toward a higher-margin revenue mix or a substantial reduction in the cost of goods sold relative to sales.
- Stabilization at Elevated Plateaus (March 2025 – March 2026)
- Following the rapid expansion of 2024, the gross profit margin entered a stabilization phase. Values remained consistently elevated, peaking at 32.16% in September 2025 before settling into a range between 31.25% and 31.87%. This represents a significant permanent increase in profitability efficiency compared to the 2022-2023 baseline, maintaining a premium of approximately 7 to 9 percentage points over previous historical averages.
Operating Profit Margin
GE Aerospace, operating profit margin 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) | |||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Sales of equipment and services | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025)
÷ (Sales of equipment and servicesQ1 2026
+ Sales of equipment and servicesQ4 2025
+ Sales of equipment and servicesQ3 2025
+ Sales of equipment and servicesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
Analysis of the operating performance from March 2022 through March 2026 reveals a fundamental transformation in profitability. A period of relatively stable but low margins transitioned into a phase of aggressive margin expansion, coinciding with a significant reduction in overall sales volume.
- Revenue and Operating Income Divergence
- A notable divergence is observed between sales and operating income starting in the first quarter of 2024. Sales of equipment and services decreased from $18.5 billion in December 2023 to $8.1 billion in March 2024. Despite this contraction in top-line revenue, operating income continued a consistent upward trajectory, increasing from $1.6 billion in December 2023 to $2.9 billion by March 2026.
- Operating Profit Margin Expansion
- The operating profit margin exhibited two distinct phases. Between March 2022 and December 2023, the margin remained constrained, fluctuating within a narrow range between 6.05% and 8.49%. Beginning in March 2024, a sharp acceleration occurred, with the margin climbing from 10.44% to 23.29% by December 2024, eventually peaking at 26.24% in September 2025.
- Profitability Stabilization
- Following the rapid expansion observed throughout 2024 and early 2025, profitability reached a plateau. The operating profit margin stabilized between 25.05% and 26.24% from December 2024 through March 2026, indicating the establishment of a new, higher baseline of operational efficiency.
Net Profit Margin
GE Aerospace, net profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) attributable to the Company | |||||||||||||||||||||||
| Sales of equipment and services | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, 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
Net profit margin = 100
× (Net income (loss) attributable to the CompanyQ1 2026
+ Net income (loss) attributable to the CompanyQ4 2025
+ Net income (loss) attributable to the CompanyQ3 2025
+ Net income (loss) attributable to the CompanyQ2 2025)
÷ (Sales of equipment and servicesQ1 2026
+ Sales of equipment and servicesQ4 2025
+ Sales of equipment and servicesQ3 2025
+ Sales of equipment and servicesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance exhibits a distinct three-phase trajectory, transitioning from significant losses to a period of stabilization and, ultimately, to a high-margin growth phase. An initial period of negative profitability was followed by a volatile recovery and a subsequent structural shift that led to sustained margin expansion.
- Initial Recovery and Profitability Pivot
- Between March 2022 and September 2022, the entity operated with negative net profit margins, reaching a low of -8.10%. A pivot occurred in December 2022, where the margin turned positive at 0.31%. This recovery accelerated sharply in the first three quarters of 2023, with margins climbing from 12.35% to a peak of 15.08% by September 2023, indicating a rapid improvement in operational efficiency or a shift in revenue composition.
- Structural Transition and Margin Contraction
- A significant disruption is observed in March 2024, characterized by a substantial decline in both sales and net profit margin. The margin dropped to 5.96% from 14.68% in the preceding quarter. This contraction coincided with a sharp reduction in sales volume, suggesting a structural reorganization or a divestiture of lower-margin business segments.
- Sustained Margin Expansion and Optimization
- Following the March 2024 trough, a consistent upward trend in profitability is evident. Net profit margins expanded steadily from 9.25% in June 2024 to a peak of 20.57% by December 2025. This growth occurred alongside a gradual increase in sales, indicating that the entity successfully scaled its operations while simultaneously improving cost management. The period ending March 2026 shows a stabilization of the margin at 19.21%, reflecting a new, higher baseline of profitability compared to historical levels.
Return on Equity (ROE)
GE Aerospace, ROE 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 | |||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net income (loss) attributable to the CompanyQ1 2026
+ Net income (loss) attributable to the CompanyQ4 2025
+ Net income (loss) attributable to the CompanyQ3 2025
+ Net income (loss) attributable to the CompanyQ2 2025)
÷ Shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial trajectory exhibits a transition from substantial losses in 2022 to consistent profitability and accelerating returns on equity through early 2026. The overall trend is characterized by a significant recovery in net earnings paired with a strategic or structural reduction in the equity base, which has mechanically and organically amplified the return on equity.
- Net Income Performance
- Net losses were recorded throughout the first three quarters of 2022, reaching a trough in September 2022. Profitability returned in December 2022, followed by a substantial earnings peak of 7.5 billion USD in March 2023. From June 2023 onward, net income stabilized and entered a gradual growth phase, increasing from 1.27 billion USD in June 2024 to a peak of 2.54 billion USD in December 2025, before settling at 1.90 billion USD in March 2026.
- Shareholders' Equity Trends
- A consistent downward trend in shareholders' equity is observed over the analyzed period. Equity declined from 39.0 billion USD in March 2022 to approximately 18.1 billion USD by March 2026. A significant reduction occurred between March 2024 and June 2024, where equity dropped from 29.86 billion USD to 18.60 billion USD, after which the balance remained relatively stable between 18 and 19 billion USD.
- Return on Equity (ROE) Interpretation
- The ROE shifted from negative values in 2022, ranging between -12.20% and -18.56%, to positive territory starting in December 2022. A period of high volatility occurred in 2023, with the ratio peaking at 35.27% in September. Following a sharp dip to 11.77% in March 2024, the ROE entered a sustained upward climb. This acceleration is attributed to the combination of rising net income and a significantly lower equity denominator, resulting in a steady increase from 25.51% in June 2024 to a high of 47.79% by March 2026.
Return on Assets (ROA)
GE Aerospace, ROA 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 | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net income (loss) attributable to the CompanyQ1 2026
+ Net income (loss) attributable to the CompanyQ4 2025
+ Net income (loss) attributable to the CompanyQ3 2025
+ Net income (loss) attributable to the CompanyQ2 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of profitability metrics indicates a transition from negative returns to a period of steady growth and improved asset efficiency. The trend is characterized by an initial recovery period, a high-volatility growth phase, and a subsequent period of asset optimization.
- Return on Assets (ROA) Trend
- ROA exhibited significant volatility between March 2022 and March 2024, moving from a low of -3.23% in September 2022 to a peak of 6.45% in September 2023. A sharp correction occurred in March 2024, where ROA declined to 2.14%. However, from June 2024 through March 2026, a consistent upward trajectory is observed, with the ratio climbing steadily to reach 6.72%.
- Net Income Performance
- Net income shifted from losses in early 2022 to consistent profitability starting in December 2022. A substantial spike in earnings was recorded in March 2023 at 7,506 million US$, followed by a period of stabilization. From June 2024 onwards, quarterly net income maintained a positive trend, generally increasing from 1,266 million US$ to a peak of 2,541 million US$ in December 2025.
- Asset Base Optimization
- Total assets showed a general downward trend, decreasing from 191,961 million US$ in March 2022 to 128,445 million US$ by March 2026. A significant reduction in the asset base is evident between March 2024 and June 2024, where assets fell from 163,942 million US$ to 123,190 million US$. This contraction in the asset base, coupled with stable and growing net income, contributed materially to the expansion of the ROA in the latter half of the analyzed period.
The correlation between the reduction in total assets and the rise in ROA suggests a strategic shift toward leaner operations and higher capital efficiency. The capacity to generate increasing net income on a smaller asset base indicates improved operational productivity and a strengthening of the overall profitability profile.