Stock Analysis on Net
Stock Analysis on Net
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General Electric Co. (NYSE:GE)

Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (Summary)

General Electric Co., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 0.33 0.37 0.30 0.30 0.21
Adjusted 0.34 0.38 0.30 0.30 0.21
Liquidity Ratio
Current Ratio
Reported 1.66 1.76 1.83 1.92 1.58
Adjusted 1.67 1.78 1.83 1.92 1.58
Solvency Ratios
Debt to Equity
Reported 3.21 3.55 2.09 1.80 2.02
Adjusted 4.09 2.68 1.70 1.73 1.98
Debt to Capital
Reported 0.76 0.78 0.68 0.64 0.67
Adjusted 0.80 0.73 0.63 0.63 0.66
Financial Leverage
Reported 9.40 9.98 5.88 4.82 5.01
Adjusted 11.17 7.05 4.59 4.53 4.84
Profitability Ratios
Net Profit Margin
Reported -5.69% -19.69% -5.11% 8.00% -5.79%
Adjusted 2.39% -20.74% -5.09% 7.77% 3.65%
Return on Equity (ROE)
Reported -17.58% -72.16% -9.00% 11.65% -6.23%
Adjusted 9.10% -54.84% -7.01% 10.58% 3.79%
Return on Assets (ROA)
Reported -1.87% -7.23% -1.53% 2.42% -1.24%
Adjusted 0.81% -7.78% -1.53% 2.33% 0.78%

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Electric Co.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. General Electric Co.’s adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. General Electric Co.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. General Electric Co.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
General Electric Co.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. General Electric Co.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. General Electric Co.’s adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Electric Co.’s adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

General Electric Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Sales of goods and services 87,487  113,544  113,192  110,390  105,808 
Total assets 266,048  309,129  377,945  365,183  492,692 
Activity Ratio
Total asset turnover1 0.33 0.37 0.30 0.30 0.21
Adjusted
Selected Financial Data (US$ in millions)
Sales of goods and services 87,487  113,544  113,192  110,390  105,808 
Adjusted total assets2 257,033  302,675  377,028  367,604  493,625 
Activity Ratio
Adjusted total asset turnover3 0.34 0.38 0.30 0.30 0.21

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 2019 Calculation
Total asset turnover = Sales of goods and services ÷ Total assets
= 87,487 ÷ 266,048 = 0.33

2 Adjusted total assets. See details »

3 2019 Calculation
Adjusted total asset turnover = Sales of goods and services ÷ Adjusted total assets
= 87,487 ÷ 257,033 = 0.34

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Electric Co.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 126,066  121,917  144,993  157,058  170,827 
Current liabilities 75,914  69,212  79,380  81,997  108,195 
Liquidity Ratio
Current ratio1 1.66 1.76 1.83 1.92 1.58
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 126,940  122,921  145,550  157,533  171,135 
Current liabilities 75,914  69,212  79,380  81,997  108,195 
Liquidity Ratio
Adjusted current ratio3 1.67 1.78 1.83 1.92 1.58

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 126,066 ÷ 75,914 = 1.66

2 Adjusted current assets. See details »

3 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 126,940 ÷ 75,914 = 1.67

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. General Electric Co.’s adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 90,882  109,958  134,591  136,211  198,276 
Total GE shareholders’ equity 28,316  30,981  64,263  75,828  98,274 
Solvency Ratio
Debt to equity1 3.21 3.55 2.09 1.80 2.02
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 94,044  114,932  139,324  139,990  202,006 
Adjusted total equity3 23,011  42,945  82,099  81,077  102,036 
Solvency Ratio
Adjusted debt to equity4 4.09 2.68 1.70 1.73 1.98

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 2019 Calculation
Debt to equity = Total debt ÷ Total GE shareholders’ equity
= 90,882 ÷ 28,316 = 3.21

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 94,044 ÷ 23,011 = 4.09

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. General Electric Co.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 90,882  109,958  134,591  136,211  198,276 
Total capital 119,198  140,939  198,854  212,039  296,550 
Solvency Ratio
Debt to capital1 0.76 0.78 0.68 0.64 0.67
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 94,044  114,932  139,324  139,990  202,006 
Adjusted total capital3 117,055  157,877  221,423  221,067  304,042 
Solvency Ratio
Adjusted debt to capital4 0.80 0.73 0.63 0.63 0.66

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 90,882 ÷ 119,198 = 0.76

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 94,044 ÷ 117,055 = 0.80

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. General Electric Co.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 266,048  309,129  377,945  365,183  492,692 
Total GE shareholders’ equity 28,316  30,981  64,263  75,828  98,274 
Solvency Ratio
Financial leverage1 9.40 9.98 5.88 4.82 5.01
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 257,033  302,675  377,028  367,604  493,625 
Adjusted total equity3 23,011  42,945  82,099  81,077  102,036 
Solvency Ratio
Adjusted financial leverage4 11.17 7.05 4.59 4.53 4.84

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 2019 Calculation
Financial leverage = Total assets ÷ Total GE shareholders’ equity
= 266,048 ÷ 28,316 = 9.40

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 257,033 ÷ 23,011 = 11.17

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
General Electric Co.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company (4,979) (22,355) (5,786) 8,831  (6,126)
Sales of goods and services 87,487  113,544  113,192  110,390  105,808 
Profitability Ratio
Net profit margin1 -5.69% -19.69% -5.11% 8.00% -5.79%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 2,094  (23,549) (5,759) 8,575  3,865 
Sales of goods and services 87,487  113,544  113,192  110,390  105,808 
Profitability Ratio
Adjusted net profit margin3 2.39% -20.74% -5.09% 7.77% 3.65%

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 2019 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to the Company ÷ Sales of goods and services
= 100 × -4,979 ÷ 87,487 = -5.69%

2 Adjusted net earnings (loss). See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings (loss) ÷ Sales of goods and services
= 100 × 2,094 ÷ 87,487 = 2.39%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. General Electric Co.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company (4,979) (22,355) (5,786) 8,831  (6,126)
Total GE shareholders’ equity 28,316  30,981  64,263  75,828  98,274 
Profitability Ratio
ROE1 -17.58% -72.16% -9.00% 11.65% -6.23%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 2,094  (23,549) (5,759) 8,575  3,865 
Adjusted total equity3 23,011  42,945  82,099  81,077  102,036 
Profitability Ratio
Adjusted ROE4 9.10% -54.84% -7.01% 10.58% 3.79%

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 2019 Calculation
ROE = 100 × Net earnings (loss) attributable to the Company ÷ Total GE shareholders’ equity
= 100 × -4,979 ÷ 28,316 = -17.58%

2 Adjusted net earnings (loss). See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net earnings (loss) ÷ Adjusted total equity
= 100 × 2,094 ÷ 23,011 = 9.10%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. General Electric Co.’s adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company (4,979) (22,355) (5,786) 8,831  (6,126)
Total assets 266,048  309,129  377,945  365,183  492,692 
Profitability Ratio
ROA1 -1.87% -7.23% -1.53% 2.42% -1.24%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 2,094  (23,549) (5,759) 8,575  3,865 
Adjusted total assets3 257,033  302,675  377,028  367,604  493,625 
Profitability Ratio
Adjusted ROA4 0.81% -7.78% -1.53% 2.33% 0.78%

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 2019 Calculation
ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × -4,979 ÷ 266,048 = -1.87%

2 Adjusted net earnings (loss). See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net earnings (loss) ÷ Adjusted total assets
= 100 × 2,094 ÷ 257,033 = 0.81%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Electric Co.’s adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.