Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Ratios (Summary)
Debt to Equity
Debt to Capital
Debt to Assets
Financial Leverage
Interest Coverage
Fixed Charge Coverage

General Electric Co., debt and solvency ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Debt Ratios
	Debt to equity
	Debt to capital
	Debt to assets
	Financial leverage
	Coverage Ratios
	Interest coverage
	Fixed charge coverage

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
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	General Electric Co.’s debt to equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	General Electric Co.’s debt to capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	General Electric Co.’s debt to assets ratio improved from 2016 to 2017 and from 2017 to 2018.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	General Electric Co.’s financial leverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	General Electric Co.’s interest coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	General Electric Co.’s fixed charge coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

General Electric Co., debt to equity calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Short-term borrowings
	Non-recourse borrowings of consolidated securitization entities
	Bank deposits
	Long-term borrowings
	Total debt

	Total GE shareowners’ equity
	Ratio
	Debt to equity¹
	Benchmarks
	Debt to Equity, Competitors
	3M Co.
	Danaher Corp.
	Honeywell International Inc.
	Debt to Equity, Sector
	General Industrials
	Debt to Equity, Industry
	Industrials

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
= hidden ÷ hidden = hidden

Ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	General Electric Co.’s debt to equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

General Electric Co., debt to capital calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Short-term borrowings
	Non-recourse borrowings of consolidated securitization entities
	Bank deposits
	Long-term borrowings
	Total debt
	Total GE shareowners’ equity
	Total capital
	Ratio
	Debt to capital¹
	Benchmarks
	Debt to Capital, Competitors
	3M Co.
	Danaher Corp.
	Honeywell International Inc.
	Debt to Capital, Sector
	General Industrials
	Debt to Capital, Industry
	Industrials

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
= hidden ÷ hidden = hidden

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.’s debt to capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

General Electric Co., debt to assets calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Short-term borrowings
	Non-recourse borrowings of consolidated securitization entities
	Bank deposits
	Long-term borrowings
	Total debt

	Total assets
	Ratio
	Debt to assets¹
	Benchmarks
	Debt to Assets, Competitors
	3M Co.
	Danaher Corp.
	Honeywell International Inc.
	Debt to Assets, Sector
	General Industrials
	Debt to Assets, Industry
	Industrials

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 assets = Total debt ÷ Total assets
= hidden ÷ hidden = hidden

Ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	General Electric Co.’s debt to assets ratio improved from 2016 to 2017 and from 2017 to 2018.

General Electric Co., financial leverage calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Total assets
	Total GE shareowners’ equity
	Ratio
	Financial leverage¹
	Benchmarks
	Financial Leverage, Competitors
	3M Co.
	Danaher Corp.
	Honeywell International Inc.
	Financial Leverage, Sector
	General Industrials
	Financial Leverage, Industry
	Industrials

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
= hidden ÷ hidden = hidden

Ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	General Electric Co.’s financial leverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

General Electric Co., interest coverage calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Net earnings (loss) attributable to the Company
	Add: Net income attributable to noncontrolling interest
	Less: Loss from discontinued operations, net of taxes
	Add: Income tax expense
	Add: Interest and other financial charges
	Earnings before interest and tax (EBIT)
	Ratio
	Interest coverage¹
	Benchmarks
	Interest Coverage, Competitors
	3M Co.
	Danaher Corp.
	Honeywell International Inc.
	Interest Coverage, Sector
	General Industrials
	Interest Coverage, Industry
	Industrials

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 Interest coverage = EBIT ÷ Interest expense
= hidden ÷ hidden = hidden

Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	General Electric Co.’s interest coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

General Electric Co., fixed charge coverage calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	U.S. federal statutory income tax rate
	Selected Financial Data (USD $ in millions)
	Net earnings (loss) attributable to the Company
	Add: Net income attributable to noncontrolling interest
	Less: Loss from discontinued operations, net of taxes
	Add: Income tax expense
	Add: Interest and other financial charges
	Earnings before interest and tax (EBIT)
	Add: Rental expense under operating leases
	Earnings before fixed charges and tax

	Interest and other financial charges
	Rental expense under operating leases
	Preferred stock dividends
	Preferred stock dividends, tax adjustment¹
	Preferred stock dividends, after tax adjustment
	Fixed charges
	Ratio
	Fixed charge coverage²
	Benchmarks
	Fixed Charge Coverage, Competitors
	3M Co.
	Danaher Corp.
	Honeywell International Inc.
	Fixed Charge Coverage, Sector
	General Industrials
	Fixed Charge Coverage, Industry
	Industrials

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 Preferred stock dividends, tax adjustment = (Preferred stock dividends × U.S. federal statutory income tax rate) ÷ (1 − U.S. federal statutory income tax rate)
= ( hidden × hidden ) ÷ (1 − hidden ) = hidden

² Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= hidden ÷ hidden = hidden

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.’s fixed charge coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

	General Electric Co.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

General Electric Co. (GE)

Long-term Debt and Solvency Analysis

Ratios (Summary)

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Fixed Charge Coverage