Stock Analysis on Net
Stock Analysis on Net

GE Aerospace (NYSE:GE)

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Common-Size Income Statement

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GE Aerospace, common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Sales of equipment
Sales of services
Sales of equipment and services
Cost of equipment sold
Cost of services sold
Cost of equipment and services sold
Gross profit from sales
Insurance revenues
Selling, general and administrative expenses
Separation costs
Research and development
Operating earnings
Interest and other financial charges
Debt extinguishment costs
Insurance losses, annuity benefits and other costs
Goodwill impairments
Non-operating benefit income (cost)
Other income
Earnings (loss) from continuing operations before income taxes
(Provision) benefit for income taxes
Earnings (loss) from continuing operations
Earnings (loss) from discontinued operations, net of taxes
Net earnings (loss)
Net (earnings) loss attributable to noncontrolling interests
Net earnings (loss) attributable to the Company
Preferred stock dividends and other
Net earnings (loss) attributable to common shareholders

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).

Sales composition
There is a notable shift in the composition of sales from equipment to services over the analyzed period. The percentage of sales from equipment decreased steadily from 67.74% in 2020 to 29.25% in 2024, while sales from services increased correspondingly from 32.26% to 70.75%. Total sales of equipment and services consistently represent 100%.
Cost trends
The cost of equipment sold declined from -57.57% in 2020 to -29.44% in 2024, mirroring the decreased share of equipment sales. Conversely, the cost of services sold increased from -25.17% to -39.77% over the same period, consistent with the rise in service sales. Overall, the combined cost of equipment and services sold fluctuated but showed a reduction from -82.74% in 2020 to -69.21% in 2024.
Gross profit
Gross profit as a percentage of sales showed gains as it increased from 17.26% in 2020 to 30.79% in 2024, despite some volatility. This indicates an improvement in profitability at the gross margin level, likely due to the changing sales mix and cost management.
Other revenues and expenses
Insurance revenues demonstrated variability, with a dip to 4.01% in 2022 but rising sharply to 10.2% by 2024. Selling, general and administrative expenses decreased moderately from -17.28% in 2020 to -12.63% in 2024, reflecting possible efficiency improvements. Separation costs appeared from 2022 onwards, averaging around -1.4%. Research and development expenses remained relatively stable, fluctuating slightly around -3.5%.
Operating and net earnings
Operating earnings showed an overall upward trend, improving from 5.49% in 2020 to 23.29% in 2024, with some fluctuations in between. Net earnings attributed to the company exhibited significant improvement after a negative dip in 2021 (-9.17%), rising to 18.67% in 2024. This suggests strengthened operational performance and profitability. Earnings from continuing operations followed a similar pattern, reinforcing the positive outlook in ongoing activities.
Financial charges and impairments
Interest and other financial charges declined from -4.48% to around -2.81%, indicating reduced financial costs relative to sales. Debt extinguishment costs were significant only in 2021 (-9.18%) and minor thereafter. Goodwill impairments appeared sporadically, with a small impact recorded in 2020, 2024, and none or negligible in the intervening years.
Non-operating and other income
Non-operating benefit income improved from losses in 2020 and 2021 to positive contributions exceeding 2% in 2023 and 2024. Other income showed high variation, peaking at 15.59% in 2020 and decreasing notably in subsequent years but still contributing positively, indicating potential gains from activities outside core operations.
Taxation and minority interests
The provision for income taxes shifted from a small positive effect in 2020 to increased negative values by 2024, which slightly dampened net earnings. Net earnings attributable to noncontrolling interests were minimal and fluctuated around zero, indicating limited impact on the consolidated earnings.
Overall summary
The data reveals a clear strategic pivot toward service-based revenues, accompanied by improved gross margins and operating profitability. Cost structures adjusted accordingly, with reductions in equipment-related costs and increased costs consistent with service growth. Operating efficiency appeared to improve, evidenced by declining administrative expenses and rising operating earnings margins. Despite some volatility in non-operating income and one-time costs such as debt extinguishments and goodwill impairments, overall net earnings have strengthened substantially by 2024. Taxation effects and minority interests had minimal influence on the upward earnings trajectory.