Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
General Electric Co., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | General Electric Co. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | General Electric Co. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | General Electric Co. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | General Electric Co. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | General Electric Co. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | General Electric Co. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | General Electric Co. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | General Electric Co. interest coverage ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | General Electric Co. fixed charge coverage ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Debt to Equity
General Electric Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,361) | 4,778) | 23,727) | 14,724) | 26,016) | |
| Long-term borrowings | 30,824) | 70,288) | 67,155) | 95,234) | 108,575) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | 40.85 | 31.32 | |
| Caterpillar Inc. | 2.29 | 2.42 | 2.58 | 2.60 | 2.55 | |
| Honeywell International Inc. | 1.06 | 1.28 | 0.87 | 0.89 | 1.04 | |
| Lockheed Martin Corp. | 1.07 | 2.02 | 4.05 | 10.12 | — | |
| Northrop Grumman Corp. | 0.99 | 1.42 | 1.57 | 1.76 | — | |
| Raytheon Technologies Corp. | 0.43 | 0.44 | 1.04 | 1.18 | 0.93 | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.31 | 1.85 | 2.27 | 2.25 | — | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.44 | 1.93 | 2.02 | 1.93 | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | General Electric Co. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
General Electric Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,361) | 4,778) | 23,727) | 14,724) | 26,016) | |
| Long-term borrowings | 30,824) | 70,288) | 67,155) | 95,234) | 108,575) | |
| Total debt | 35,185) | 75,066) | 90,882) | 109,958) | 134,591) | |
| Operating lease liabilities (included in All other liabilities) | 2,848) | 2,973) | 3,162) | —) | —) | |
| Total debt (including operating lease liability) | 38,033) | 78,039) | 94,044) | 109,958) | 134,591) | |
| Total GE shareholders’ equity | 40,310) | 35,552) | 28,316) | 30,981) | 64,263) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.94 | 2.20 | 3.32 | 3.55 | 2.09 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | 40.85 | 31.32 | |
| Caterpillar Inc. | 2.33 | 2.46 | 2.62 | 2.60 | 2.55 | |
| Honeywell International Inc. | 1.11 | 1.32 | 0.90 | 0.89 | 1.04 | |
| Lockheed Martin Corp. | 1.19 | 2.21 | 4.40 | 10.12 | — | |
| Northrop Grumman Corp. | 1.13 | 1.57 | 1.75 | 1.76 | — | |
| Raytheon Technologies Corp. | 0.46 | 0.47 | 1.11 | 1.18 | 0.93 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.39 | 1.93 | 2.38 | 2.25 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.61 | 2.11 | 2.15 | 1.93 | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total GE shareholders’ equity
= 38,033 ÷ 40,310 = 0.94
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | General Electric Co. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
General Electric Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,361) | 4,778) | 23,727) | 14,724) | 26,016) | |
| Long-term borrowings | 30,824) | 70,288) | 67,155) | 95,234) | 108,575) | |
| 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) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.35 | 1.40 | 1.46 | 0.98 | 0.97 | |
| Caterpillar Inc. | 0.70 | 0.71 | 0.72 | 0.72 | 0.72 | |
| Honeywell International Inc. | 0.51 | 0.56 | 0.46 | 0.47 | 0.51 | |
| Lockheed Martin Corp. | 0.52 | 0.67 | 0.80 | 0.91 | — | |
| Northrop Grumman Corp. | 0.50 | 0.59 | 0.61 | 0.64 | — | |
| Raytheon Technologies Corp. | 0.30 | 0.31 | 0.51 | 0.54 | 0.48 | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.57 | 0.65 | 0.69 | 0.69 | — | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.59 | 0.66 | 0.67 | 0.66 | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | General Electric Co. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
General Electric Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,361) | 4,778) | 23,727) | 14,724) | 26,016) | |
| Long-term borrowings | 30,824) | 70,288) | 67,155) | 95,234) | 108,575) | |
| Total debt | 35,185) | 75,066) | 90,882) | 109,958) | 134,591) | |
| Operating lease liabilities (included in All other liabilities) | 2,848) | 2,973) | 3,162) | —) | —) | |
| Total debt (including operating lease liability) | 38,033) | 78,039) | 94,044) | 109,958) | 134,591) | |
| Total GE shareholders’ equity | 40,310) | 35,552) | 28,316) | 30,981) | 64,263) | |
| Total capital (including operating lease liability) | 78,343) | 113,591) | 122,360) | 140,939) | 198,854) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.49 | 0.69 | 0.77 | 0.78 | 0.68 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.34 | 1.39 | 1.43 | 0.98 | 0.97 | |
| Caterpillar Inc. | 0.70 | 0.71 | 0.72 | 0.72 | 0.72 | |
| Honeywell International Inc. | 0.53 | 0.57 | 0.47 | 0.47 | 0.51 | |
| Lockheed Martin Corp. | 0.54 | 0.69 | 0.81 | 0.91 | — | |
| Northrop Grumman Corp. | 0.53 | 0.61 | 0.64 | 0.64 | — | |
| Raytheon Technologies Corp. | 0.31 | 0.32 | 0.53 | 0.54 | 0.48 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.58 | 0.66 | 0.70 | 0.69 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.62 | 0.68 | 0.68 | 0.66 | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 38,033 ÷ 78,343 = 0.49
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | General Electric Co. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
General Electric Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,361) | 4,778) | 23,727) | 14,724) | 26,016) | |
| Long-term borrowings | 30,824) | 70,288) | 67,155) | 95,234) | 108,575) | |
| Total debt | 35,185) | 75,066) | 90,882) | 109,958) | 134,591) | |
| Total assets | 198,874) | 253,452) | 266,048) | 309,129) | 377,945) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.18 | 0.30 | 0.34 | 0.36 | 0.36 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.42 | 0.42 | 0.20 | 0.12 | 0.12 | |
| Caterpillar Inc. | 0.46 | 0.47 | 0.48 | 0.47 | 0.45 | |
| Honeywell International Inc. | 0.30 | 0.35 | 0.27 | 0.28 | 0.30 | |
| Lockheed Martin Corp. | 0.23 | 0.24 | 0.27 | 0.31 | — | |
| Northrop Grumman Corp. | 0.30 | 0.34 | 0.34 | 0.38 | — | |
| Raytheon Technologies Corp. | 0.20 | 0.20 | 0.31 | 0.34 | 0.28 | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.28 | 0.32 | 0.32 | 0.32 | — | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.31 | 0.34 | 0.33 | 0.33 | — | |
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 assets = Total debt ÷ Total assets
= 35,185 ÷ 198,874 = 0.18
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | General Electric Co. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
General Electric Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4,361) | 4,778) | 23,727) | 14,724) | 26,016) | |
| Long-term borrowings | 30,824) | 70,288) | 67,155) | 95,234) | 108,575) | |
| Total debt | 35,185) | 75,066) | 90,882) | 109,958) | 134,591) | |
| Operating lease liabilities (included in All other liabilities) | 2,848) | 2,973) | 3,162) | —) | —) | |
| Total debt (including operating lease liability) | 38,033) | 78,039) | 94,044) | 109,958) | 134,591) | |
| Total assets | 198,874) | 253,452) | 266,048) | 309,129) | 377,945) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.19 | 0.31 | 0.35 | 0.36 | 0.36 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.43 | 0.43 | 0.21 | 0.12 | 0.12 | |
| Caterpillar Inc. | 0.46 | 0.48 | 0.49 | 0.47 | 0.45 | |
| Honeywell International Inc. | 0.32 | 0.36 | 0.28 | 0.28 | 0.30 | |
| Lockheed Martin Corp. | 0.26 | 0.26 | 0.29 | 0.31 | — | |
| Northrop Grumman Corp. | 0.34 | 0.37 | 0.38 | 0.38 | — | |
| Raytheon Technologies Corp. | 0.21 | 0.21 | 0.33 | 0.34 | 0.28 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.29 | 0.33 | 0.33 | 0.32 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.35 | 0.37 | 0.35 | 0.33 | — | |
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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 38,033 ÷ 198,874 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | General Electric Co. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
General Electric Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | 346.19 | 260.09 | |
| Caterpillar Inc. | 5.02 | 5.11 | 5.38 | 5.59 | 5.62 | |
| Honeywell International Inc. | 3.47 | 3.68 | 3.17 | 3.18 | 3.44 | |
| Lockheed Martin Corp. | 4.64 | 8.43 | 15.20 | 32.19 | — | |
| Northrop Grumman Corp. | 3.29 | 4.20 | 4.66 | 4.60 | — | |
| Raytheon Technologies Corp. | 2.21 | 2.25 | 3.34 | 3.49 | 3.27 | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 4.70 | 5.80 | 7.18 | 6.99 | — | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.66 | 5.69 | 6.09 | 5.78 | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | General Electric Co. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Interest Coverage
General Electric Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to the Company | (6,520) | 5,704) | (4,979) | (22,355) | (5,786) | |
| Add: Net income attributable to noncontrolling interest | (71) | (158) | 67) | (88) | (270) | |
| Less: Loss from discontinued operations, net of taxes | (3,195) | (126) | (5,335) | (1,726) | (308) | |
| Add: Income tax expense | (287) | (475) | 726) | 583) | (3,043) | |
| Add: Interest and other financial charges | 1,876) | 3,273) | 4,227) | 5,059) | 4,869) | |
| Earnings before interest and tax (EBIT) | (1,807) | 8,470) | 5,376) | (15,075) | (3,922) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -0.96 | 2.59 | 1.27 | -2.98 | -0.81 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | -0.88 | -5.71 | -2.19 | 25.39 | 28.90 | |
| Caterpillar Inc. | 17.88 | 8.80 | 19.62 | 20.42 | 8.72 | |
| Honeywell International Inc. | 22.09 | 17.75 | 22.17 | 21.40 | 22.84 | |
| Lockheed Martin Corp. | 14.27 | 14.93 | 12.09 | 9.74 | — | |
| Northrop Grumman Corp. | 17.08 | 7.29 | 5.83 | 7.66 | — | |
| Raytheon Technologies Corp. | 4.63 | -0.67 | 5.65 | 7.76 | 8.63 | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 4.58 | 2.16 | 4.72 | 3.81 | — | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.86 | 2.19 | 5.42 | 5.11 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= -1,807 ÷ 1,876 = -0.96
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | General Electric Co. interest coverage ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Fixed Charge Coverage
General Electric Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to the Company | (6,520) | 5,704) | (4,979) | (22,355) | (5,786) | |
| Add: Net income attributable to noncontrolling interest | (71) | (158) | 67) | (88) | (270) | |
| Less: Loss from discontinued operations, net of taxes | (3,195) | (126) | (5,335) | (1,726) | (308) | |
| Add: Income tax expense | (287) | (475) | 726) | 583) | (3,043) | |
| Add: Interest and other financial charges | 1,876) | 3,273) | 4,227) | 5,059) | 4,869) | |
| Earnings before interest and tax (EBIT) | (1,807) | 8,470) | 5,376) | (15,075) | (3,922) | |
| Add: Operating lease expense | 1,081) | 1,072) | 1,176) | 1,848) | 1,746) | |
| Earnings before fixed charges and tax | (726) | 9,542) | 6,552) | (13,227) | (2,176) | |
| Interest and other financial charges | 1,876) | 3,273) | 4,227) | 5,059) | 4,869) | |
| Operating lease expense | 1,081) | 1,072) | 1,176) | 1,848) | 1,746) | |
| Preferred stock dividends | 237) | 474) | 460) | 447) | 436) | |
| Preferred stock dividends, tax adjustment1 | 63) | 126) | 122) | 119) | 235) | |
| Preferred stock dividends, after tax adjustment | 300) | 600) | 582) | 566) | 671) | |
| Fixed charges | 3,257) | 4,945) | 5,985) | 7,473) | 7,286) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | -0.22 | 1.93 | 1.09 | -1.77 | -0.30 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Boeing Co. | -0.64 | -4.75 | -1.19 | 15.81 | 16.62 | |
| Caterpillar Inc. | 12.73 | 6.58 | 13.01 | 11.81 | 5.75 | |
| Honeywell International Inc. | 13.67 | 11.49 | 14.06 | 11.30 | 10.85 | |
| Lockheed Martin Corp. | 9.95 | 11.12 | 9.12 | 7.38 | — | |
| Northrop Grumman Corp. | 11.26 | 5.08 | 4.01 | 4.99 | — | |
| Raytheon Technologies Corp. | 3.62 | -0.24 | 4.31 | 6.03 | 6.44 | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 3.49 | 1.79 | 3.54 | 2.82 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.94 | 1.70 | 3.55 | 3.17 | — | |
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
Preferred stock dividends, tax adjustment = (Preferred stock dividends × U.S. federal statutory income tax rate) ÷ (1 − U.S. federal statutory income tax rate)
= (237 × 21.00%) ÷ (1 − 21.00%) = 63
2 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -726 ÷ 3,257 = -0.22
3 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | General Electric Co. fixed charge coverage ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |