Microsoft Excel LibreOffice Calc

General Electric Co. (GE)

Adjusted Ratios

Difficulty: Advanced

Adjusted Ratios (Summary)

General Electric Co., adjusted ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Activity
Total Asset Turnover
Reported 0.37 0.30 0.30 0.21 0.16
Adjusted 0.38 0.30 0.30 0.21 0.16
Liquidity
Current Ratio
Reported 1.76 1.83 1.92 1.58 1.98
Adjusted 1.78 1.83 1.92 1.58 1.98
Solvency
Debt to Equity
Reported 3.55 2.09 1.80 2.02 2.85
Adjusted 2.68 1.70 1.73 1.98 2.71
Debt to Capital
Reported 0.78 0.68 0.64 0.67 0.74
Adjusted 0.73 0.63 0.63 0.66 0.73
Financial Leverage
Reported 9.98 5.88 4.82 5.01 5.06
Adjusted 7.05 4.59 4.53 4.84 4.78
Profitability
Net Profit Margin
Reported -19.69% -5.11% 8.00% -5.79% 14.27%
Adjusted -20.74% -5.09% 7.77% 3.65% 4.55%
Return on Equity (ROE)
Reported -72.16% -9.00% 11.65% -6.23% 11.89%
Adjusted -54.84% -7.01% 10.58% 3.79% 3.57%
Return on Assets (ROA)
Reported -7.23% -1.53% 2.42% -1.24% 2.35%
Adjusted -7.78% -1.53% 2.33% 0.78% 0.75%

Based on: 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), 10-K (filing date: 2015-02-27).

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
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 2016 to 2017 and from 2017 to 2018.
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 improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
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 improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
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 increased from 2016 to 2017 and from 2017 to 2018.
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. General Electric Co.’s adjusted net profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. General Electric Co.’s adjusted ROE deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. General Electric Co.’s adjusted ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

General Electric Co., Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Sales of goods and services 113,544  113,192  110,390  105,808  106,758 
Total assets 309,129  377,945  365,183  492,692  648,349 
Ratio
Total asset turnover1 0.37 0.30 0.30 0.21 0.16
Adjusted
Selected Financial Data (USD $ in millions)
Sales of goods and services 113,544  113,192  110,390  105,808  106,758 
Adjusted total assets2 302,675  377,028  367,604  493,625  650,115 
Ratio
Adjusted total asset turnover3 0.38 0.30 0.30 0.21 0.16

Based on: 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), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Total asset turnover = Sales of goods and services ÷ Total assets
= 113,544 ÷ 309,129 = 0.37

2 Adjusted total assets. See Details »

3 Adjusted total asset turnover = Sales of goods and services ÷ Adjusted total assets
= 113,544 ÷ 302,675 = 0.38

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Current assets 121,917  144,993  157,058  170,827  412,952 
Current liabilities 69,212  79,380  81,997  108,195  208,440 
Ratio
Current ratio1 1.76 1.83 1.92 1.58 1.98
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted current assets2 122,921  145,550  157,533  171,135  413,509 
Current liabilities 69,212  79,380  81,997  108,195  208,440 
Ratio
Adjusted current ratio3 1.78 1.83 1.92 1.58 1.98

Based on: 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), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 121,917 ÷ 69,212 = 1.76

2 Adjusted current assets. See Details »

3 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 122,921 ÷ 69,212 = 1.78

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 2016 to 2017 and from 2017 to 2018.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Total debt 109,958  134,591  136,211  198,276  364,980 
Total GE shareowners’ equity 30,981  64,263  75,828  98,274  128,159 
Ratio
Debt to equity1 3.55 2.09 1.80 2.02 2.85
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 114,932  139,324  139,990  202,006  368,730 
Adjusted total GE shareowners’ equity3 42,945  82,099  81,077  102,036  136,048 
Ratio
Adjusted debt to equity4 2.68 1.70 1.73 1.98 2.71

Based on: 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), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Debt to equity = Total debt ÷ Total GE shareowners’ equity
= 109,958 ÷ 30,981 = 3.55

2 Adjusted total debt. See Details »

3 Adjusted total GE shareowners’ equity. See Details »

4 Adjusted debt to equity = Adjusted total debt ÷ Adjusted total GE shareowners’ equity
= 114,932 ÷ 42,945 = 2.68

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 improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Total debt 109,958  134,591  136,211  198,276  364,980 
Total capital 140,939  198,854  212,039  296,550  493,139 
Ratio
Debt to capital1 0.78 0.68 0.64 0.67 0.74
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 114,932  139,324  139,990  202,006  368,730 
Adjusted total capital3 157,877  221,423  221,067  304,042  504,778 
Ratio
Adjusted debt to capital4 0.73 0.63 0.63 0.66 0.73

Based on: 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), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 109,958 ÷ 140,939 = 0.78

2 Adjusted total debt. See Details »

3 Adjusted total capital. See Details »

4 Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 114,932 ÷ 157,877 = 0.73

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 improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Total assets 309,129  377,945  365,183  492,692  648,349 
Total GE shareowners’ equity 30,981  64,263  75,828  98,274  128,159 
Ratio
Financial leverage1 9.98 5.88 4.82 5.01 5.06
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total assets2 302,675  377,028  367,604  493,625  650,115 
Adjusted total GE shareowners’ equity3 42,945  82,099  81,077  102,036  136,048 
Ratio
Adjusted financial leverage4 7.05 4.59 4.53 4.84 4.78

Based on: 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), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Financial leverage = Total assets ÷ Total GE shareowners’ equity
= 309,129 ÷ 30,981 = 9.98

2 Adjusted total assets. See Details »

3 Adjusted total GE shareowners’ equity. See Details »

4 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total GE shareowners’ equity
= 302,675 ÷ 42,945 = 7.05

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 increased from 2016 to 2017 and from 2017 to 2018.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Net earnings (loss) attributable to the Company (22,355) (5,786) 8,831  (6,126) 15,233 
Sales of goods and services 113,544  113,192  110,390  105,808  106,758 
Ratio
Net profit margin1 -19.69% -5.11% 8.00% -5.79% 14.27%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net earnings (loss) attributable to the Company2 (23,549) (5,759) 8,575  3,865  4,857 
Sales of goods and services 113,544  113,192  110,390  105,808  106,758 
Ratio
Adjusted net profit margin3 -20.74% -5.09% 7.77% 3.65% 4.55%

Based on: 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), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Net profit margin = 100 × Net earnings (loss) attributable to the Company ÷ Sales of goods and services
= 100 × -22,355 ÷ 113,544 = -19.69%

2 Adjusted net earnings (loss) attributable to the Company. See Details »

3 Adjusted net profit margin = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Sales of goods and services
= 100 × -23,549 ÷ 113,544 = -20.74%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. General Electric Co.’s adjusted net profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Net earnings (loss) attributable to the Company (22,355) (5,786) 8,831  (6,126) 15,233 
Total GE shareowners’ equity 30,981  64,263  75,828  98,274  128,159 
Ratio
ROE1 -72.16% -9.00% 11.65% -6.23% 11.89%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net earnings (loss) attributable to the Company2 (23,549) (5,759) 8,575  3,865  4,857 
Adjusted total GE shareowners’ equity3 42,945  82,099  81,077  102,036  136,048 
Ratio
Adjusted ROE4 -54.84% -7.01% 10.58% 3.79% 3.57%

Based on: 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), 10-K (filing date: 2015-02-27).

2018 Calculations

1 ROE = 100 × Net earnings (loss) attributable to the Company ÷ Total GE shareowners’ equity
= 100 × -22,355 ÷ 30,981 = -72.16%

2 Adjusted net earnings (loss) attributable to the Company. See Details »

3 Adjusted total GE shareowners’ equity. See Details »

4 Adjusted ROE = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Adjusted total GE shareowners’ equity
= 100 × -23,549 ÷ 42,945 = -54.84%

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. General Electric Co.’s adjusted ROE deteriorated from 2016 to 2017 and from 2017 to 2018.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Net earnings (loss) attributable to the Company (22,355) (5,786) 8,831  (6,126) 15,233 
Total assets 309,129  377,945  365,183  492,692  648,349 
Ratio
ROA1 -7.23% -1.53% 2.42% -1.24% 2.35%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net earnings (loss) attributable to the Company2 (23,549) (5,759) 8,575  3,865  4,857 
Adjusted total assets3 302,675  377,028  367,604  493,625  650,115 
Ratio
Adjusted ROA4 -7.78% -1.53% 2.33% 0.78% 0.75%

Based on: 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), 10-K (filing date: 2015-02-27).

2018 Calculations

1 ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × -22,355 ÷ 309,129 = -7.23%

2 Adjusted net earnings (loss) attributable to the Company. See Details »

3 Adjusted total assets. See Details »

4 Adjusted ROA = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Adjusted total assets
= 100 × -23,549 ÷ 302,675 = -7.78%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. General Electric Co.’s adjusted ROA deteriorated from 2016 to 2017 and from 2017 to 2018.