Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
GE Aerospace, short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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 operating activity ratios reveals a transition from relative stability between March 2022 and December 2023 to increased volatility and a general deceleration in asset turnover starting in early 2024. While there were temporary spikes in efficiency during specific quarters, the long-term trend indicates a lengthening of the operating and cash conversion cycles.
- Inventory and Receivables Management
- Inventory turnover remained consistent around 3.0 to 3.3 until March 2024, after which a general decline is observed, stabilizing between 2.3 and 2.6. This is mirrored in the average inventory processing period, which expanded from approximately 110-120 days in the first two years to a peak of 160 days in June 2025, before moderating to 139 days by June 2026. Similarly, receivables turnover showed a downward trend following a significant peak in June 2024, with the average collection period increasing from a baseline of 73-89 days to consistently exceed 95 days from December 2024 onward.
- Payables and Cash Conversion Dynamics
- The average payables payment period experienced a sharp contraction in June 2024, dropping to 73 days, but subsequently lengthened to a peak of 134 days by June 2025. This extension in payment terms helped mitigate some of the pressure caused by slower inventory and receivable turnovers. Despite this, the cash conversion cycle has expanded, rising from a range of 80-95 days in 2022-2023 to a peak of 127 days in June 2025, suggesting that liquidity is tied up in operating activities for longer durations than in previous periods.
- Operating Cycle and Working Capital Efficiency
- The operating cycle exhibited a marked increase starting in March 2024, growing from roughly 200 days to a peak of 261 days in June 2025, before trending down to 234 days by June 2026. A notable anomaly is observed in the working capital turnover ratio, which remained relatively stable until 2024, then exhibited extreme volatility. This culminated in a substantial surge to 134.54 in March 2026, indicating either a significant increase in revenue relative to working capital or a structural shift toward a leaner, possibly negative, working capital position.
Overall, the data suggests a period of operational transition. The temporary efficiency gains observed in June 2024 were not sustained, and the company has faced a general lengthening of its operational cycles. However, the strategic extension of payables and the dramatic shift in working capital turnover toward 2026 indicate a change in how the company manages its short-term obligations and asset utilization.
AI Ask an analyst for more
Turnover Ratios
Average No. Days
Inventory Turnover
GE Aerospace, inventory turnover calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Cost of equipment and services sold | 8,673) | 7,922) | 8,365) | 7,762) | 6,846) | 5,995) | 6,761) | 6,226) | 5,575) | 5,746) | 14,397) | 12,904) | 12,362) | 10,729) | 15,467) | 14,371) | 13,244) | 12,453) | ||||||
| Inventories, including deferred inventory costs | 12,440) | 12,367) | 11,868) | 11,667) | 11,297) | 10,504) | 9,763) | 9,718) | 9,469) | 17,603) | 16,528) | 17,020) | 16,789) | 16,198) | 17,403) | 17,536) | 17,553) | 16,570) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Inventory turnover1 | 2.63 | 2.50 | 2.44 | 2.35 | 2.29 | 2.34 | 2.49 | 3.29 | 4.08 | 2.58 | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 1.01 | 1.01 | 1.01 | 0.97 | 0.86 | 0.80 | 0.78 | 0.85 | 0.78 | 0.82 | 0.88 | 0.87 | 0.88 | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | ||||||
| Caterpillar Inc. | — | 2.40 | 2.47 | 2.20 | 2.16 | 2.21 | 2.39 | 2.36 | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | ||||||
| Eaton Corp. plc | — | 3.50 | 3.63 | 3.57 | 3.51 | 3.55 | 3.64 | 3.66 | 3.81 | 3.85 | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | ||||||
| Honeywell International Inc. | 3.77 | 3.73 | 3.83 | 3.43 | 3.35 | 3.59 | 3.70 | 3.73 | 3.69 | 3.65 | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | ||||||
| Lockheed Martin Corp. | 15.40 | 15.93 | 19.13 | 17.97 | 17.84 | 17.94 | 18.46 | 19.41 | 20.21 | 18.67 | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | ||||||
| RTX Corp. | 5.17 | 5.09 | 5.30 | 4.97 | 4.77 | 4.83 | 5.12 | 4.74 | 4.64 | 4.76 | 4.83 | 4.60 | 4.68 | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Inventory turnover
= (Cost of equipment and services soldQ2 2026
+ Cost of equipment and services soldQ1 2026
+ Cost of equipment and services soldQ4 2025
+ Cost of equipment and services soldQ3 2025)
÷ Inventories, including deferred inventory costs
= (8,673 + 7,922 + 8,365 + 7,762)
÷ 12,440 = 2.63
2 Click competitor name to see calculations.
The analysis of inventory management reveals a significant structural shift in operations beginning in the first half of 2024, characterized by a substantial reduction in both the cost of equipment and services sold and total inventory levels. While the earlier period demonstrated relative stability in turnover efficiency, the subsequent period shows a transition to a lower baseline for inventory turnover ratios.
- Cost of Equipment and Services Sold Trends
- Between March 2022 and December 2023, costs showed a general upward trajectory, peaking at 15.47 billion US dollars in late 2022. A sharp contraction occurred starting March 31, 2024, where costs dropped to 5.75 billion US dollars. From this point forward, a gradual recovery is observed, with costs steadily increasing to 8.67 billion US dollars by June 30, 2026.
- Inventory Level Fluctuations
- Inventory balances remained consistent between 16.2 billion and 17.6 billion US dollars from March 2022 through March 2024. A precipitous decline occurred in June 2024, with inventory falling to 9.47 billion US dollars. Following this correction, inventory levels have trended upward in a linear fashion, reaching 12.44 billion US dollars by the end of the analyzed period.
- Inventory Turnover Performance
- From March 2022 to December 2023, the inventory turnover ratio remained stable, typically fluctuating between 3.02 and 3.32. A period of high volatility emerged in 2024, marked by a peak of 4.08 in June 2024, which represents the highest efficiency level in the dataset. However, this spike was temporary; for the remainder of the period from March 2025 through June 2026, the ratio stabilized at a lower range between 2.29 and 2.63.
- Operational Efficiency Analysis
- The data indicates that post-2024 operations are characterized by lower inventory velocity compared to the 2022-2023 period. The decrease in the turnover ratio suggests that inventory is being held longer relative to the cost of goods sold, despite the lower overall scale of the balance sheet and income statement items.
AI Ask an analyst for more
Receivables Turnover
GE Aerospace, receivables turnover calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Sales of equipment and services | 12,633) | 11,614) | 11,866) | 11,306) | 10,150) | 9,000) | 9,879) | 8,943) | 8,223) | 8,076) | 18,516) | 16,504) | 15,851) | 13,694) | 21,012) | 18,438) | 17,880) | 16,272) | ||||||
| Current receivables | 12,360) | 12,466) | 11,773) | 10,671) | 10,512) | 9,653) | 9,327) | 8,936) | 8,370) | 15,100) | 15,466) | 14,546) | 14,767) | 14,212) | 17,976) | 17,197) | 16,283) | 16,050) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Receivables turnover1 | 3.84 | 3.60 | 3.59 | 3.78 | 3.61 | 3.73 | 3.77 | 4.90 | 6.13 | 3.90 | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 26.74 | 26.45 | 30.63 | 24.37 | 23.61 | 21.67 | 25.28 | 25.33 | 23.31 | 25.83 | 29.37 | 24.99 | 24.99 | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | ||||||
| Caterpillar Inc. | — | 5.86 | 5.86 | 6.02 | 6.14 | 6.56 | 6.61 | 6.85 | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | ||||||
| Eaton Corp. plc | — | 4.48 | 5.10 | 4.79 | 4.74 | 4.97 | 5.39 | 5.04 | 4.97 | 5.06 | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | ||||||
| Honeywell International Inc. | 4.56 | 4.67 | 4.91 | 4.34 | 4.31 | 4.64 | 4.92 | 4.80 | 4.81 | 4.94 | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | ||||||
| Lockheed Martin Corp. | 22.95 | 32.35 | 19.24 | 19.08 | 21.73 | 35.48 | 30.22 | 33.30 | 24.26 | 30.86 | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | ||||||
| RTX Corp. | 6.71 | 6.98 | 6.03 | 6.70 | 6.75 | 7.15 | 7.36 | 7.83 | 7.06 | 6.91 | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Receivables turnover
= (Sales of equipment and servicesQ2 2026
+ Sales of equipment and servicesQ1 2026
+ Sales of equipment and servicesQ4 2025
+ Sales of equipment and servicesQ3 2025)
÷ Current receivables
= (12,633 + 11,614 + 11,866 + 11,306)
÷ 12,360 = 3.84
2 Click competitor name to see calculations.
The analysis of operating activity reveals a period of significant volatility in both revenue generation and receivables management, particularly between late 2023 and mid-2024, followed by a phase of stabilization through the first half of 2026.
- Revenue Trends
- Sales of equipment and services exhibited a general upward trajectory throughout 2022, peaking at 21,012 million US dollars in December 2022. A notable contraction occurred in the first quarter of 2024, where sales dropped to 8,076 million US dollars. Following this trough, a consistent recovery trend is observed, with quarterly revenues climbing steadily to 12,633 million US dollars by June 2026.
- Receivables Dynamics
- Current receivables largely tracked with sales patterns until the second quarter of 2024. A substantial reduction in receivables is evident on June 30, 2024, where the balance fell to 8,370 million US dollars from a previous high of 17,976 million US dollars in December 2022. From mid-2024 onward, receivables began a gradual increase, reaching 12,360 million US dollars by June 2026, mirroring the recovery in sales.
- Receivables Turnover Efficiency
- The receivables turnover ratio demonstrates significant fluctuation. An initial gradual decline was observed during 2022, falling from 4.43 to 4.09. A sharp anomaly occurred on June 30, 2024, where the ratio spiked to 6.13, the highest point in the analyzed period, coinciding with the abrupt decrease in current receivables. This suggests an accelerated collection of outstanding invoices or a structural adjustment in the balance sheet during that quarter.
- Long-term Stability Analysis
- Following the volatility of 2024, the turnover ratio entered a period of relative stability. From March 2025 through June 2026, the ratio fluctuated within a narrow band between 3.59 and 3.84. This indicates a more consistent, albeit slightly slower, collection cycle compared to the levels maintained during 2022.
AI Ask an analyst for more
Payables Turnover
GE Aerospace, payables turnover calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Cost of equipment and services sold | 8,673) | 7,922) | 8,365) | 7,762) | 6,846) | 5,995) | 6,761) | 6,226) | 5,575) | 5,746) | 14,397) | 12,904) | 12,362) | 10,729) | 15,467) | 14,371) | 13,244) | 12,453) | ||||||
| Accounts payable | 10,822) | 10,683) | 10,078) | 9,485) | 9,495) | 8,625) | 7,909) | 7,829) | 7,707) | 15,184) | 15,408) | 15,785) | 15,515) | 15,063) | 18,644) | 17,331) | 17,030) | 16,206) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Payables turnover1 | 3.02 | 2.89 | 2.87 | 2.88 | 2.72 | 2.85 | 3.07 | 4.08 | 5.01 | 2.99 | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 6.25 | 6.40 | 6.50 | 6.81 | 6.72 | 6.43 | 6.03 | 5.79 | 5.61 | 5.92 | 5.86 | 6.18 | 6.28 | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | ||||||
| Caterpillar Inc. | — | 4.88 | 4.99 | 4.78 | 4.69 | 5.07 | 5.24 | 5.31 | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | ||||||
| Eaton Corp. plc | — | 3.67 | 4.11 | 4.31 | 4.27 | 4.26 | 4.18 | 4.24 | 4.31 | 4.38 | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | ||||||
| Honeywell International Inc. | 3.78 | 3.94 | 3.74 | 3.34 | 3.31 | 3.52 | 3.46 | 3.56 | 3.60 | 3.57 | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | ||||||
| Lockheed Martin Corp. | 13.82 | 14.39 | 18.58 | 17.57 | 18.06 | 16.89 | 28.85 | 19.48 | 19.07 | 17.38 | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | ||||||
| RTX Corp. | 4.38 | 4.51 | 4.46 | 4.72 | 4.98 | 4.89 | 5.07 | 5.40 | 5.54 | 5.60 | 5.31 | 5.37 | 5.54 | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Payables turnover
= (Cost of equipment and services soldQ2 2026
+ Cost of equipment and services soldQ1 2026
+ Cost of equipment and services soldQ4 2025
+ Cost of equipment and services soldQ3 2025)
÷ Accounts payable
= (8,673 + 7,922 + 8,365 + 7,762)
÷ 10,822 = 3.02
2 Click competitor name to see calculations.
The analysis of short-term operating activity indicates a significant structural shift in the management of payables and cost of sales occurring in the second quarter of 2024. Prior to this period, the company maintained a relatively stable payables turnover ratio, which fluctuated between 2.98 and 3.57. Following a period of volatility in 2024, the ratio has trended toward stabilization in the 2.72 to 3.02 range through the first half of 2026.
- Cost of Equipment and Services Sold
- A cyclical pattern is observed from 2022 through 2023, with costs peaking in the fourth quarter of 2022 at 15,467 million USD. A sharp contraction occurred in March 2024, where costs dropped to 5,746 million USD. Subsequent quarters show a steady recovery and growth trend, with costs increasing incrementally to reach 8,673 million USD by June 2026.
- Accounts Payable Levels
- Payables remained elevated between 15,000 and 18,600 million USD from March 2022 through March 2024. A substantial reduction is noted in June 2024, where accounts payable fell to 7,707 million USD, representing a nearly 50% decrease from the previous quarter. From June 2024 onward, a gradual upward trajectory is evident, with payables rising to 10,822 million USD by June 2026.
- Payables Turnover Ratio Trends
- The turnover ratio exhibited a notable anomaly in June 2024, spiking to 5.01. This peak was driven by the precipitous decline in accounts payable relative to the cost of equipment and services sold. Following this spike, the ratio underwent a correction, returning to a range of 2.85 to 3.07 by the end of 2024. The projected data for 2025 and 2026 suggests a period of consolidation, with the ratio maintaining a narrow band around 2.8 to 3.0, indicating a return to a consistent payment cycle and normalized supplier credit utilization.
AI Ask an analyst for more
Working Capital Turnover
GE Aerospace, working capital turnover calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Current assets | 39,697) | 40,361) | 40,596) | 40,074) | 37,801) | 37,575) | 37,635) | 38,649) | 37,352) | 59,589) | 59,799) | 56,434) | 60,213) | 60,286) | 66,234) | 60,082) | 60,658) | 63,299) | ||||||
| Less: Current liabilities | 40,430) | 40,027) | 38,980) | 37,203) | 36,466) | 34,941) | 34,392) | 34,093) | 32,750) | 51,087) | 50,876) | 48,164) | 48,108) | 48,177) | 56,947) | 54,657) | 53,883) | 53,344) | ||||||
| Working capital | (733) | 334) | 1,616) | 2,871) | 1,335) | 2,634) | 3,243) | 4,556) | 4,602) | 8,502) | 8,923) | 8,270) | 12,105) | 12,109) | 9,287) | 5,425) | 6,775) | 9,955) | ||||||
| Sales of equipment and services | 12,633) | 11,614) | 11,866) | 11,306) | 10,150) | 9,000) | 9,879) | 8,943) | 8,223) | 8,076) | 18,516) | 16,504) | 15,851) | 13,694) | 21,012) | 18,438) | 17,880) | 16,272) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Working capital turnover1 | — | 134.54 | 26.19 | 14.05 | 28.44 | 13.68 | 10.83 | 9.60 | 11.15 | 6.93 | 7.24 | 8.11 | 5.70 | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 6.24 | 4.96 | 4.40 | 4.29 | 3.15 | 2.89 | 2.15 | 6.04 | 4.13 | 5.76 | 5.78 | 5.46 | 4.80 | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | ||||||
| Caterpillar Inc. | — | 5.30 | 4.02 | 4.42 | 5.04 | 5.73 | 4.58 | 4.89 | 6.61 | 5.64 | 5.23 | 4.27 | 5.29 | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | ||||||
| Eaton Corp. plc | — | 12.60 | 9.20 | 10.02 | 11.29 | 8.69 | 6.31 | 5.84 | 5.33 | 5.58 | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | ||||||
| Honeywell International Inc. | 7.79 | 4.43 | 5.37 | 4.78 | 6.00 | 6.87 | 5.79 | 4.39 | 8.63 | 3.37 | 7.39 | 5.98 | 5.16 | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | ||||||
| Lockheed Martin Corp. | 16.77 | 25.12 | 37.02 | 24.76 | — | 44.49 | 29.25 | 13.20 | 15.88 | 13.24 | 18.85 | 11.04 | 10.56 | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | ||||||
| RTX Corp. | 140.18 | 63.20 | 57.24 | 22.14 | 257.23 | 279.93 | — | — | — | 23.64 | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Working capital turnover
= (Sales of equipment and servicesQ2 2026
+ Sales of equipment and servicesQ1 2026
+ Sales of equipment and servicesQ4 2025
+ Sales of equipment and servicesQ3 2025)
÷ Working capital
= (12,633 + 11,614 + 11,866 + 11,306)
÷ -733 = —
2 Click competitor name to see calculations.
An analysis of the operating activity reveals a profound shift in the management of short-term assets and liabilities, characterized by a systemic reduction in working capital alongside fluctuating sales volumes. This evolution has resulted in an exponential increase in the working capital turnover ratio, indicating a transition toward an extremely lean operating model or a fundamental change in the balance sheet structure.
- Working Capital Trends
- A sustained downward trajectory in working capital is evident. After reaching a peak of 12,109 million USD in the first half of 2023, the figure declined steadily throughout 2024 and 2025. By March 2026, working capital had fallen to 334 million USD, ultimately transitioning to a negative value of -733 million USD by June 2026. This trend suggests a strategic reduction in net current assets or an increase in current liabilities relative to current assets.
- Sales of Equipment and Services
- Revenue streams exhibited significant volatility between 2022 and 2024. Following a high of 21,012 million USD in December 2022, sales experienced a notable contraction in the first quarter of 2024, dropping to 8,076 million USD. However, a consistent recovery phase followed, with sales growing steadily from 8,223 million USD in June 2024 to 12,633 million USD by June 2026.
- Working Capital Turnover Ratio
- The turnover ratio demonstrates extreme acceleration, driven primarily by the collapse of the working capital base rather than proportional increases in sales. While the ratio fluctuated between 5.70 and 13.29 from 2022 through 2024, it spiked significantly in 2025, reaching 28.44 in June. This trend culminated in an outlier value of 134.54 in March 2026. This suggests that the entity is generating substantial revenue with minimal net investment in operating liquidity.
The convergence of declining working capital and recovering sales has decoupled the traditional relationship between liquidity and revenue generation. The movement toward negative working capital by mid-2026 indicates a state where current liabilities exceed current assets, which may point to highly efficient inventory and receivables management or an increased reliance on short-term financing to fund operations.
AI Ask an analyst for more
Average Inventory Processing Period
GE Aerospace, average inventory processing period calculation (quarterly data)
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Inventory turnover | 2.63 | 2.50 | 2.44 | 2.35 | 2.29 | 2.34 | 2.49 | 3.29 | 4.08 | 2.58 | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average inventory processing period1 | 139 | 146 | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 360 | 363 | 363 | 377 | 424 | 459 | 466 | 428 | 470 | 443 | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | ||||||
| Caterpillar Inc. | — | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| Eaton Corp. plc | — | 104 | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | ||||||
| Honeywell International Inc. | 97 | 98 | 95 | 106 | 109 | 102 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | ||||||
| Lockheed Martin Corp. | 24 | 23 | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | ||||||
| RTX Corp. | 71 | 72 | 69 | 73 | 77 | 76 | 71 | 77 | 79 | 77 | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.63 = 139
2 Click competitor name to see calculations.
The operational efficiency regarding inventory management demonstrates a transition from a period of relative stability to one of significant volatility and subsequent expansion of the processing cycle. Between March 2022 and December 2023, inventory metrics remained consistent, with the processing period fluctuating narrowly between 110 and 121 days, corresponding to inventory turnover ratios between 3.02 and 3.32.
- Volatility and Efficiency Peaks (2024)
- The first half of 2024 was characterized by extreme variance. A notable peak in operational efficiency occurred in June 2024, where the average inventory processing period dropped to a minimum of 89 days and the turnover ratio reached its maximum of 4.08. However, this efficiency was short-lived, as the processing period rose sharply to 147 days by December 31, 2024, reflecting a rapid accumulation of inventory or a slowdown in output.
- Cycle Extension and Peak Duration (2025)
- During 2025, a sustained upward trend in the processing period is observed, signaling a decrease in inventory turnover. The duration peaked in June 2025 at 160 days, coinciding with the lowest turnover ratio in the observed period at 2.29. This indicates a significant increase in the time required to convert raw materials and work-in-progress into finished goods.
- Normalization Trend (2026)
- A gradual recovery in turnover efficiency is evident in the first half of 2026. The processing period declined from 150 days in December 2025 to 139 days by June 2026, while the turnover ratio improved from 2.44 to 2.63. This suggests a corrective movement toward historical norms, although processing times remain elevated compared to the 2022-2023 baseline.
AI Ask an analyst for more
Average Receivable Collection Period
GE Aerospace, average receivable collection period calculation (quarterly data)
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Receivables turnover | 3.84 | 3.60 | 3.59 | 3.78 | 3.61 | 3.73 | 3.77 | 4.90 | 6.13 | 3.90 | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average receivable collection period1 | 95 | 101 | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 14 | 14 | 12 | 15 | 15 | 17 | 14 | 14 | 16 | 14 | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | ||||||
| Caterpillar Inc. | — | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| Eaton Corp. plc | — | 81 | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | ||||||
| Honeywell International Inc. | 80 | 78 | 74 | 84 | 85 | 79 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | ||||||
| Lockheed Martin Corp. | 16 | 11 | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | ||||||
| RTX Corp. | 54 | 52 | 61 | 54 | 54 | 51 | 50 | 47 | 52 | 53 | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 3.84 = 95
2 Click competitor name to see calculations.
The average receivable collection period exhibits significant volatility with an overall upward trend in the duration required to convert receivables into cash. While the period began at 82 days in March 2022, it reached a peak of 102 days by December 2025, indicating a general deceleration in the collection process over the observed timeframe.
- Receivables Turnover Dynamics
- The turnover ratio demonstrates a fluctuating pattern, characterized by a significant peak of 6.13 in June 2024. This spike represents the highest level of efficiency in the period, although it was short-lived. Following this peak, the ratio trended downward, stabilizing in a lower range between 3.59 and 3.84 throughout 2025 and into mid-2026.
- Collection Period Fluctuations
- A period of relative consistency was observed during 2022, with the collection period ranging between 82 and 89 days. A notable improvement in efficiency occurred in June 2024, where the collection period dropped to its minimum of 60 days. However, this was followed by a sustained increase, with the period remaining consistently above 95 days from December 2024 through June 2026.
- Long-term Efficiency Analysis
- An inverse correlation is maintained between the turnover ratio and the collection period. The shift from a baseline of approximately 80-89 days in 2022 to a baseline of 95-102 days in 2025 and 2026 suggests a lengthening of the operating cycle. This trend indicates that a larger portion of capital is tied up in receivables for longer durations compared to the initial periods of the analysis.
AI Ask an analyst for more
Operating Cycle
GE Aerospace, operating cycle calculation (quarterly data)
No. days
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Average inventory processing period | 139 | 146 | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | ||||||
| Average receivable collection period | 95 | 101 | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Operating cycle1 | 234 | 247 | 252 | 253 | 261 | 254 | 244 | 186 | 149 | 234 | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 374 | 377 | 375 | 392 | 439 | 476 | 480 | 442 | 486 | 457 | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | ||||||
| Caterpillar Inc. | — | 214 | 210 | 227 | 228 | 221 | 208 | 208 | 206 | 199 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | ||||||
| Eaton Corp. plc | — | 185 | 173 | 178 | 181 | 176 | 168 | 172 | 169 | 167 | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | ||||||
| Honeywell International Inc. | 177 | 176 | 169 | 190 | 194 | 181 | 173 | 174 | 175 | 174 | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | ||||||
| Lockheed Martin Corp. | 40 | 34 | 38 | 39 | 37 | 30 | 32 | 30 | 33 | 32 | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | ||||||
| RTX Corp. | 125 | 124 | 130 | 127 | 131 | 127 | 121 | 124 | 131 | 130 | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 139 + 95 = 234
2 Click competitor name to see calculations.
The operating cycle exhibits a general expansion over the analyzed period, transitioning from a relatively stable range in 2022 and 2023 to a more prolonged duration through 2025 and 2026. While a significant temporary contraction occurred in mid-2024, the overall trajectory indicates a lengthening of the time required to convert operational inputs into cash, peaking at 261 days in June 2025 before slightly moderating.
- Average Inventory Processing Period
- Between March 2022 and December 2023, the inventory processing period remained largely consistent, fluctuating between 110 and 121 days. A period of heightened volatility emerged in 2024, characterized by a sharp increase to 141 days in March, followed by a rapid decline to 89 days in June. Subsequently, a sustained upward trend is observed, with the period reaching a maximum of 160 days by June 2025. The cycle concludes with a gradual reduction to 139 days by June 2026, though it remains elevated compared to the 2022 baseline.
- Average Receivable Collection Period
- The collection period showed moderate stability from 73 to 89 days during the first two years of the analysis. A notable efficiency gain was recorded in June 2024, where the collection period dropped to 60 days. However, this improvement was short-lived, as the period entered a steady climb throughout late 2024 and 2025, consistently exceeding 95 days from March 2025 through March 2026. This suggests a gradual slowing in the speed of cash realization from credit sales.
- Operating Cycle Aggregate
- The total operating cycle mirrors the combined volatility and growth of its components. The cycle maintained a baseline of approximately 183 to 207 days during 2022 and 2023. The lowest point of the entire period was reached in June 2024 at 149 days, driven by simultaneous lows in both inventory processing and receivable collection. Following this trough, the operating cycle expanded rapidly, peaking at 261 days in June 2025. By June 2026, the cycle settled at 234 days, representing a net increase in the operational duration compared to the start of the period.
AI Ask an analyst for more
Average Payables Payment Period
GE Aerospace, average payables payment period calculation (quarterly data)
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Payables turnover | 3.02 | 2.89 | 2.87 | 2.88 | 2.72 | 2.85 | 3.07 | 4.08 | 5.01 | 2.99 | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average payables payment period1 | 121 | 126 | 127 | 127 | 134 | 128 | 119 | 89 | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 58 | 57 | 56 | 54 | 54 | 57 | 61 | 63 | 65 | 62 | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | ||||||
| Caterpillar Inc. | — | 75 | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | ||||||
| Eaton Corp. plc | — | 100 | 89 | 85 | 85 | 86 | 87 | 86 | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | ||||||
| Honeywell International Inc. | 97 | 93 | 98 | 109 | 110 | 104 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | ||||||
| Lockheed Martin Corp. | 26 | 25 | 20 | 21 | 20 | 22 | 13 | 19 | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | ||||||
| RTX Corp. | 83 | 81 | 82 | 77 | 73 | 75 | 72 | 68 | 66 | 65 | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.02 = 121
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a period of relative stability followed by significant volatility in mid-2024, eventually transitioning into a trend of extended payment cycles through mid-2026.
- Payables Turnover Trends
- The payables turnover ratio remained largely consistent between 2.98 and 3.57 from March 2022 through March 2024. A significant anomaly occurred in June 2024, where the ratio spiked to 5.01, indicating a rapid acceleration in the settlement of accounts payable. Following this peak, the ratio declined and stabilized within a narrower range of 2.72 to 3.02 from March 2025 through June 2026, suggesting a more consistent and slower rate of payment to suppliers in the latter period.
- Average Payables Payment Period Analysis
- The payment period exhibited a general upward trajectory, starting at 110 days in March 2022 and reaching 122 days by March 2024. This trend was interrupted by a sharp contraction in June 2024, when the payment period dropped to its lowest point of 73 days. Subsequent to this contraction, the duration increased steadily, peaking at 134 days in June 2025. The final quarters of the analyzed period show a stabilization of the payment cycle between 121 and 127 days.
- Working Capital Implications
- The inverse correlation between the turnover ratio and the payment period is evident throughout the sequence. The extension of the payment period to over 120 days in the 2025-2026 period suggests a strategic shift toward optimizing working capital by deferring cash outflows. The volatility observed in 2024 represents a temporary departure from the company's typical operating rhythm, characterized by a brief but intense acceleration of supplier payments.
AI Ask an analyst for more
Cash Conversion Cycle
GE Aerospace, cash conversion cycle calculation (quarterly data)
No. days
| Jun 30, 2026 | 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 | ||||||||||||||||||||||||
| Average inventory processing period | 139 | 146 | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | ||||||
| Average receivable collection period | 95 | 101 | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | ||||||
| Average payables payment period | 121 | 126 | 127 | 127 | 134 | 128 | 119 | 89 | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Cash conversion cycle1 | 113 | 121 | 125 | 126 | 127 | 126 | 125 | 97 | 76 | 112 | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 316 | 320 | 319 | 338 | 385 | 419 | 419 | 379 | 421 | 395 | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | ||||||
| Caterpillar Inc. | — | 139 | 137 | 151 | 150 | 149 | 138 | 139 | 139 | 132 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | ||||||
| Eaton Corp. plc | — | 85 | 84 | 93 | 96 | 90 | 81 | 86 | 84 | 84 | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | ||||||
| Honeywell International Inc. | 80 | 83 | 71 | 81 | 84 | 77 | 68 | 71 | 74 | 72 | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | ||||||
| Lockheed Martin Corp. | 14 | 9 | 18 | 18 | 17 | 8 | 19 | 11 | 14 | 11 | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | ||||||
| RTX Corp. | 42 | 43 | 48 | 50 | 58 | 52 | 49 | 56 | 65 | 65 | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 139 + 95 – 121 = 113
2 Click competitor name to see calculations.
The cash conversion cycle exhibits a general upward trend over the analyzed period, indicating a lengthening of the time required to convert working capital into cash. While the cycle remained relatively stable between 80 and 95 days throughout 2022 and 2023, it experienced significant volatility in 2024 before peaking in 2025. A gradual contraction is observed in the first half of 2026, though the cycle remains considerably longer than the 2022 baseline.
- Average Inventory Processing Period
- Inventory holding times showed a marked increase over the long term. From a baseline of 112 days in March 2022, the period climbed to a peak of 160 days by June 2025. A period of extreme volatility occurred in 2024, where the duration fluctuated sharply from a high of 141 days in March to a low of 89 days in June, before ascending again. This suggests fluctuations in production schedules or supply chain adjustments, ultimately resulting in a slower inventory turnover rate by 2025.
- Average Receivable Collection Period
- The time required to collect receivables generally expanded, shifting from the low 80s in 2022 to consistently exceeding 100 days during 2025. Similar to inventory trends, a significant dip was recorded in June 2024 (60 days), followed by a steady increase. The overall trend indicates a decrease in the efficiency of receivables collection or a strategic shift in credit terms granted to customers.
- Average Payables Payment Period
- The payment period for payables acted as a partial offset to the lengthening of inventory and receivable cycles. After an initial increase through 2022, the period experienced a sharp contraction in June 2024 to 73 days. Subsequently, there was a substantial extension of payment terms, peaking at 134 days in June 2025. This extension of payables suggests an effort to preserve liquidity by delaying cash outflows to suppliers.
- Cash Conversion Cycle Synthesis
- The net effect of these components resulted in a cash conversion cycle that expanded from 84 days in March 2022 to a peak of 127 days in June 2025. The most significant instability occurred in 2024, characterized by a sharp drop to 76 days in June followed by a rapid climb to 125 days by year-end. The subsequent stabilization and slight decline to 113 days by June 2026 suggest a gradual return toward operational equilibrium, although efficiency remains lower than in the 2022-2023 period.
AI Ask an analyst for more