Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

GE Aerospace, consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Short-term borrowings	1,686)	2,039)	1,253)	3,757)	4,361)
Accounts payable	10,078)	7,909)	15,408)	18,644)	16,243)
Progress collections	7,662)	6,695)	19,106)	16,166)	15,537)
Contract liabilities and deferred income	10,333)	9,353)	571)	1,952)	1,835)
Sales discounts and allowances	4,037)	3,475)	—)	—)	—)
All other current liabilities	5,184)	4,921)	12,712)	14,484)	13,977)
Liabilities of businesses held for sale	—)	—)	1,826)	1,944)	—)
Current liabilities	38,980)	34,392)	50,876)	56,947)	51,953)
Deferred income	1,065)	1,013)	1,339)	2,006)	1,989)
Long-term borrowings	18,808)	17,234)	19,711)	28,593)	30,824)
Insurance liabilities and annuity benefits	36,894)	36,209)	39,624)	33,347)	37,166)
Non-current compensation and benefits	6,833)	7,035)	11,214)	16,021)	21,202)
All other liabilities	7,278)	6,376)	10,509)	12,155)	13,241)
Liabilities of discontinued operations	1,413)	1,317)	1,193)	1,137)	887)
Non-current liabilities	72,291)	69,184)	83,590)	93,259)	105,309)
Total liabilities	111,271)	103,576)	134,466)	150,206)	157,262)
Preferred stock	—)	—)	—)	6)	6)
Common stock	15)	15)	15)	15)	15)
Accumulated other comprehensive income (loss), net attributable to the Company	(4,798)	(3,861)	(6,150)	(1,311)	1,582)
Other capital	23,599)	24,266)	26,962)	34,173)	34,691)
Retained earnings	87,663)	80,488)	86,527)	84,692)	85,109)
Common stock held in treasury	(87,802)	(81,566)	(79,976)	(81,209)	(81,093)
Shareholders’ equity	18,677)	19,342)	27,378)	36,366)	40,310)
Noncontrolling interests	221)	222)	1,201)	1,216)	1,302)
Total equity	18,898)	19,564)	28,579)	37,582)	41,612)
Total liabilities and equity	130,169)	123,140)	163,045)	187,788)	198,874)

Based on: 10-K (reporting date: 2025-12-31), 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).

The company experienced significant shifts in its balance sheet composition between 2021 and 2025. Total liabilities decreased substantially over the period, while total equity also declined, though to a lesser extent. A notable trend is the reduction in both current and non-current liabilities, coupled with a fluctuating equity position.

Current Liabilities: Current liabilities initially increased from $51.953 billion in 2021 to $56.947 billion in 2022, before decreasing significantly to $34.392 billion in 2024. A slight increase was observed in 2025, reaching $38.980 billion. Within current liabilities, accounts payable peaked in 2022 at $18.644 billion, then decreased sharply to $7.909 billion in 2024, followed by a rise to $10.078 billion in 2025. Progress collections also followed a similar pattern, decreasing from $16.166 billion in 2022 to $6.695 billion in 2024, and then increasing to $7.662 billion in 2025. Contract liabilities and deferred income exhibited a substantial increase in 2024 and 2025, rising from $571 million to $9.353 billion and $10.333 billion respectively. Short-term borrowings decreased considerably throughout the period, from $4.361 billion in 2021 to $1.686 billion in 2025.
Non-Current Liabilities: Non-current liabilities demonstrated a consistent decline from $105.309 billion in 2021 to $69.184 billion in 2024, with a slight increase to $72.291 billion in 2025. Long-term borrowings decreased from $30.824 billion to $18.808 billion over the five-year period. Insurance liabilities and annuity benefits remained relatively stable, fluctuating between $33.347 billion and $39.624 billion. Non-current compensation and benefits decreased significantly, from $21.202 billion in 2021 to $6.833 billion in 2025.
Total Liabilities: Total liabilities decreased from $157.262 billion in 2021 to a low of $103.576 billion in 2024, before increasing to $111.271 billion in 2025. This reduction indicates a decrease in the company’s overall financial obligations.
Shareholders’ Equity: Shareholders’ equity experienced a consistent decline from $40.310 billion in 2021 to $18.677 billion in 2025. Accumulated other comprehensive income (loss) moved from a positive $1.582 billion to a negative $4.798 billion, representing a significant shift. Retained earnings remained relatively stable, fluctuating between $80.488 billion and $86.527 billion. A substantial increase in common stock held in treasury is observed, moving from -$81.093 billion in 2021 to -$87.802 billion in 2025, which partially offsets the other equity components. Other capital also decreased over the period.
Total Liabilities and Equity: Total liabilities and equity decreased from $198.874 billion in 2021 to $123.140 billion in 2024, then increased to $130.169 billion in 2025. The decrease reflects the combined effect of declining liabilities and equity.

The data suggests a strategic shift in the company’s financial structure, with a focus on reducing debt and potentially returning capital to shareholders through treasury stock purchases. The increase in contract liabilities and deferred income in later years may indicate a change in revenue recognition practices or an increase in upfront payments from customers. The decline in equity, despite relatively stable retained earnings, is primarily driven by the increasing negative balance in accumulated other comprehensive income and the growing treasury stock position.

Download chart

GE Aerospace (NYSE:GE)

Balance Sheet: Liabilities and Stockholders’ Equity