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, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 0.29 0.33 0.37 0.30 0.30
Adjusted 0.30 0.34 0.38 0.30 0.30
Liquidity Ratio
Current Ratio
Reported 1.58 1.16 1.08 1.16 1.17
Adjusted 1.60 1.17 1.10 1.17 1.17
Solvency Ratios
Debt to Equity
Reported 2.11 3.21 3.55 2.09 1.80
Adjusted 2.77 4.09 2.68 1.70 1.73
Debt to Capital
Reported 0.68 0.76 0.78 0.68 0.64
Adjusted 0.73 0.80 0.73 0.63 0.63
Financial Leverage
Reported 7.13 9.40 9.98 5.88 4.82
Adjusted 8.60 11.17 7.05 4.59 4.53
Profitability Ratios
Net Profit Margin
Reported 7.81% -5.69% -19.69% -5.11% 8.00%
Adjusted 6.74% 2.39% -20.74% -5.09% 7.77%
Return on Equity (ROE)
Reported 16.04% -17.58% -72.16% -9.00% 11.65%
Adjusted 17.44% 9.10% -54.84% -7.01% 10.58%
Return on Assets (ROA)
Reported 2.25% -1.87% -7.23% -1.53% 2.42%
Adjusted 2.03% 0.81% -7.78% -1.53% 2.33%

Based on: 10-K (filing date: 2021-02-12), 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).

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 deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. General Electric Co.’s adjusted current ratio improved from 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
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 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
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 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.
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 improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. General Electric Co.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. General Electric Co.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.

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


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Sales of goods and services 73,022  87,487  113,544  113,192  110,390 
Total assets 253,452  266,048  309,129  377,945  365,183 
Activity Ratio
Total asset turnover1 0.29 0.33 0.37 0.30 0.30
Adjusted
Selected Financial Data (US$ in millions)
Sales of goods and services 73,022  87,487  113,544  113,192  110,390 
Adjusted total assets2 242,535  257,033  302,675  377,028  367,604 
Activity Ratio
Adjusted total asset turnover3 0.30 0.34 0.38 0.30 0.30

Based on: 10-K (filing date: 2021-02-12), 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).

1 2020 Calculation
Total asset turnover = Sales of goods and services ÷ Total assets
= 73,022 ÷ 253,452 = 0.29

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Sales of goods and services ÷ Adjusted total assets
= 73,022 ÷ 242,535 = 0.30

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 deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 88,412  90,016  75,795  93,903  96,304 
Current liabilities 56,069  77,572  69,920  80,719  82,653 
Liquidity Ratio
Current ratio1 1.58 1.16 1.08 1.16 1.17
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 89,576  90,890  76,799  94,460  96,779 
Current liabilities 56,069  77,572  69,920  80,719  82,653 
Liquidity Ratio
Adjusted current ratio3 1.60 1.17 1.10 1.17 1.17

Based on: 10-K (filing date: 2021-02-12), 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).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 88,412 ÷ 56,069 = 1.58

2 Adjusted current assets. See details »

3 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 89,576 ÷ 56,069 = 1.60

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 improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 75,066  90,882  109,958  134,591  136,211 
Total GE shareholders’ equity 35,552  28,316  30,981  64,263  75,828 
Solvency Ratio
Debt to equity1 2.11 3.21 3.55 2.09 1.80
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 78,039  94,044  114,932  139,324  139,990 
Adjusted total equity3 28,210  23,011  42,945  82,099  81,077 
Solvency Ratio
Adjusted debt to equity4 2.77 4.09 2.68 1.70 1.73

Based on: 10-K (filing date: 2021-02-12), 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).

1 2020 Calculation
Debt to equity = Total debt ÷ Total GE shareholders’ equity
= 75,066 ÷ 35,552 = 2.11

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 78,039 ÷ 28,210 = 2.77

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 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 75,066  90,882  109,958  134,591  136,211 
Total capital 110,618  119,198  140,939  198,854  212,039 
Solvency Ratio
Debt to capital1 0.68 0.76 0.78 0.68 0.64
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 78,039  94,044  114,932  139,324  139,990 
Adjusted total capital3 106,249  117,055  157,877  221,423  221,067 
Solvency Ratio
Adjusted debt to capital4 0.73 0.80 0.73 0.63 0.63

Based on: 10-K (filing date: 2021-02-12), 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).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 75,066 ÷ 110,618 = 0.68

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 78,039 ÷ 106,249 = 0.73

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 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 253,452  266,048  309,129  377,945  365,183 
Total GE shareholders’ equity 35,552  28,316  30,981  64,263  75,828 
Solvency Ratio
Financial leverage1 7.13 9.40 9.98 5.88 4.82
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 242,535  257,033  302,675  377,028  367,604 
Adjusted total equity3 28,210  23,011  42,945  82,099  81,077 
Solvency Ratio
Adjusted financial leverage4 8.60 11.17 7.05 4.59 4.53

Based on: 10-K (filing date: 2021-02-12), 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).

1 2020 Calculation
Financial leverage = Total assets ÷ Total GE shareholders’ equity
= 253,452 ÷ 35,552 = 7.13

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 242,535 ÷ 28,210 = 8.60

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 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company 5,704  (4,979) (22,355) (5,786) 8,831 
Sales of goods and services 73,022  87,487  113,544  113,192  110,390 
Profitability Ratio
Net profit margin1 7.81% -5.69% -19.69% -5.11% 8.00%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 4,921  2,094  (23,549) (5,759) 8,575 
Sales of goods and services 73,022  87,487  113,544  113,192  110,390 
Profitability Ratio
Adjusted net profit margin3 6.74% 2.39% -20.74% -5.09% 7.77%

Based on: 10-K (filing date: 2021-02-12), 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).

1 2020 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to the Company ÷ Sales of goods and services
= 100 × 5,704 ÷ 73,022 = 7.81%

2 Adjusted net earnings (loss). See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings (loss) ÷ Sales of goods and services
= 100 × 4,921 ÷ 73,022 = 6.74%

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 improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company 5,704  (4,979) (22,355) (5,786) 8,831 
Total GE shareholders’ equity 35,552  28,316  30,981  64,263  75,828 
Profitability Ratio
ROE1 16.04% -17.58% -72.16% -9.00% 11.65%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 4,921  2,094  (23,549) (5,759) 8,575 
Adjusted total equity3 28,210  23,011  42,945  82,099  81,077 
Profitability Ratio
Adjusted ROE4 17.44% 9.10% -54.84% -7.01% 10.58%

Based on: 10-K (filing date: 2021-02-12), 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).

1 2020 Calculation
ROE = 100 × Net earnings (loss) attributable to the Company ÷ Total GE shareholders’ equity
= 100 × 5,704 ÷ 35,552 = 16.04%

2 Adjusted net earnings (loss). See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net earnings (loss) ÷ Adjusted total equity
= 100 × 4,921 ÷ 28,210 = 17.44%

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 improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company 5,704  (4,979) (22,355) (5,786) 8,831 
Total assets 253,452  266,048  309,129  377,945  365,183 
Profitability Ratio
ROA1 2.25% -1.87% -7.23% -1.53% 2.42%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 4,921  2,094  (23,549) (5,759) 8,575 
Adjusted total assets3 242,535  257,033  302,675  377,028  367,604 
Profitability Ratio
Adjusted ROA4 2.03% 0.81% -7.78% -1.53% 2.33%

Based on: 10-K (filing date: 2021-02-12), 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).

1 2020 Calculation
ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × 5,704 ÷ 253,452 = 2.25%

2 Adjusted net earnings (loss). See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net earnings (loss) ÷ Adjusted total assets
= 100 × 4,921 ÷ 242,535 = 2.03%

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 improved from 2018 to 2019 and from 2019 to 2020.