Stock Analysis on Net

General Electric Co. (NYSE:GE)

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

General Electric Co., adjusted financial ratios

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Activity Ratio
Total Asset Turnover
Reported 0.36 0.29 0.33 0.37 0.30
Adjusted 0.38 0.30 0.34 0.37 0.30
Liquidity Ratio
Current Ratio
Reported 1.28 1.58 1.16 1.08 1.16
Adjusted 1.38 1.69 1.25 1.20 1.21
Solvency Ratios
Debt to Equity
Reported 0.87 2.11 3.21 3.55 2.09
Adjusted 1.01 2.46 3.53 2.47 1.70
Debt to Capital
Reported 0.47 0.68 0.76 0.78 0.68
Adjusted 0.50 0.71 0.78 0.71 0.63
Financial Leverage
Reported 4.93 7.13 9.40 9.98 5.88
Adjusted 5.04 7.63 9.66 6.50 4.59
Profitability Ratios
Net Profit Margin
Reported -9.17% 7.81% -5.69% -19.69% -5.11%
Adjusted 11.14% 7.39% 2.53% -21.01% -5.09%
Return on Equity (ROE)
Reported -16.17% 16.04% -17.58% -72.16% -9.00%
Adjusted 21.17% 17.11% 8.34% -51.08% -7.01%
Return on Assets (ROA)
Reported -3.28% 2.25% -1.87% -7.23% -1.53%
Adjusted 4.20% 2.24% 0.86% -7.86% -1.53%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Electric Co. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. General Electric Co. adjusted current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. General Electric Co. adjusted debt-to-equity ratio improved from 2019 to 2020 and from 2020 to 2021.
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. adjusted debt-to-capital ratio improved from 2019 to 2020 and from 2020 to 2021.
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. adjusted financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. General Electric Co. adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. General Electric Co. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Electric Co. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

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


Adjusted Total Asset Turnover

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Sales of equipment and services 71,090  73,022  87,487  113,544  113,192 
Total assets 198,874  253,452  266,048  309,129  377,945 
Activity Ratio
Total asset turnover1 0.36 0.29 0.33 0.37 0.30
Adjusted
Selected Financial Data (US$ in millions)
Adjusted sales of equipment and services2 71,356  73,538  87,613  113,289  113,192 
Adjusted total assets3 189,093  242,535  257,033  302,675  377,028 
Activity Ratio
Adjusted total asset turnover4 0.38 0.30 0.34 0.37 0.30

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Total asset turnover = Sales of equipment and services ÷ Total assets
= 71,090 ÷ 198,874 = 0.36

2 Adjusted sales of equipment and services. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted total asset turnover = Adjusted sales of equipment and services ÷ Adjusted total assets
= 71,356 ÷ 189,093 = 0.38

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. General Electric Co. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Current Ratio

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Current assets 66,348  88,412  90,016  75,795  93,903 
Current liabilities 51,953  56,069  77,572  69,920  80,719 
Liquidity Ratio
Current ratio1 1.28 1.58 1.16 1.08 1.16
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 67,422  89,576  90,890  76,799  94,460 
Adjusted current liabilities3 49,027  53,115  72,595  63,754  78,355 
Liquidity Ratio
Adjusted current ratio4 1.38 1.69 1.25 1.20 1.21

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 66,348 ÷ 51,953 = 1.28

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 67,422 ÷ 49,027 = 1.38

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. General Electric Co. adjusted current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Adjusted Debt to Equity

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt 35,185  75,066  90,882  109,958  134,591 
Total GE shareholders’ equity 40,310  35,552  28,316  30,981  64,263 
Solvency Ratio
Debt to equity1 0.87 2.11 3.21 3.55 2.09
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 38,033  78,039  94,044  114,932  139,324 
Adjusted total equity3 37,546  31,768  26,617  46,601  82,099 
Solvency Ratio
Adjusted debt to equity4 1.01 2.46 3.53 2.47 1.70

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity = Total debt ÷ Total GE shareholders’ equity
= 35,185 ÷ 40,310 = 0.87

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 38,033 ÷ 37,546 = 1.01

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. adjusted debt-to-equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Debt to Capital

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt 35,185  75,066  90,882  109,958  134,591 
Total capital 75,495  110,618  119,198  140,939  198,854 
Solvency Ratio
Debt to capital1 0.47 0.68 0.76 0.78 0.68
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 38,033  78,039  94,044  114,932  139,324 
Adjusted total capital3 75,579  109,807  120,661  161,533  221,423 
Solvency Ratio
Adjusted debt to capital4 0.50 0.71 0.78 0.71 0.63

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 35,185 ÷ 75,495 = 0.47

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 38,033 ÷ 75,579 = 0.50

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. adjusted debt-to-capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Financial Leverage

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total assets 198,874  253,452  266,048  309,129  377,945 
Total GE shareholders’ equity 40,310  35,552  28,316  30,981  64,263 
Solvency Ratio
Financial leverage1 4.93 7.13 9.40 9.98 5.88
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 189,093  242,535  257,033  302,675  377,028 
Adjusted total equity3 37,546  31,768  26,617  46,601  82,099 
Solvency Ratio
Adjusted financial leverage4 5.04 7.63 9.66 6.50 4.59

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Financial leverage = Total assets ÷ Total GE shareholders’ equity
= 198,874 ÷ 40,310 = 4.93

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 189,093 ÷ 37,546 = 5.04

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. adjusted financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Adjusted Net Profit Margin

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company (6,520) 5,704  (4,979) (22,355) (5,786)
Sales of equipment and services 71,090  73,022  87,487  113,544  113,192 
Profitability Ratio
Net profit margin1 -9.17% 7.81% -5.69% -19.69% -5.11%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 7,950  5,437  2,220  (23,804) (5,759)
Adjusted sales of equipment and services3 71,356  73,538  87,613  113,289  113,192 
Profitability Ratio
Adjusted net profit margin4 11.14% 7.39% 2.53% -21.01% -5.09%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to the Company ÷ Sales of equipment and services
= 100 × -6,520 ÷ 71,090 = -9.17%

2 Adjusted net earnings (loss). See details »

3 Adjusted sales of equipment and services. See details »

4 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings (loss) ÷ Adjusted sales of equipment and services
= 100 × 7,950 ÷ 71,356 = 11.14%

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. adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company (6,520) 5,704  (4,979) (22,355) (5,786)
Total GE shareholders’ equity 40,310  35,552  28,316  30,981  64,263 
Profitability Ratio
ROE1 -16.17% 16.04% -17.58% -72.16% -9.00%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 7,950  5,437  2,220  (23,804) (5,759)
Adjusted total equity3 37,546  31,768  26,617  46,601  82,099 
Profitability Ratio
Adjusted ROE4 21.17% 17.11% 8.34% -51.08% -7.01%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROE = 100 × Net earnings (loss) attributable to the Company ÷ Total GE shareholders’ equity
= 100 × -6,520 ÷ 40,310 = -16.17%

2 Adjusted net earnings (loss). See details »

3 Adjusted total equity. See details »

4 2021 Calculation
Adjusted ROE = 100 × Adjusted net earnings (loss) ÷ Adjusted total equity
= 100 × 7,950 ÷ 37,546 = 21.17%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. General Electric Co. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company (6,520) 5,704  (4,979) (22,355) (5,786)
Total assets 198,874  253,452  266,048  309,129  377,945 
Profitability Ratio
ROA1 -3.28% 2.25% -1.87% -7.23% -1.53%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 7,950  5,437  2,220  (23,804) (5,759)
Adjusted total assets3 189,093  242,535  257,033  302,675  377,028 
Profitability Ratio
Adjusted ROA4 4.20% 2.24% 0.86% -7.86% -1.53%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × -6,520 ÷ 198,874 = -3.28%

2 Adjusted net earnings (loss). See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted ROA = 100 × Adjusted net earnings (loss) ÷ Adjusted total assets
= 100 × 7,950 ÷ 189,093 = 4.20%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Electric Co. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.