Stock Analysis on Net

General Electric Co. (NYSE:GE)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

General Electric Co., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 0.87 2.11 3.21 3.55 2.09
Debt to equity (including operating lease liability) 0.94 2.20 3.32 3.55 2.09
Debt to capital 0.47 0.68 0.76 0.78 0.68
Debt to capital (including operating lease liability) 0.49 0.69 0.77 0.78 0.68
Debt to assets 0.18 0.30 0.34 0.36 0.36
Debt to assets (including operating lease liability) 0.19 0.31 0.35 0.36 0.36
Financial leverage 4.93 7.13 9.40 9.98 5.88
Coverage Ratios
Interest coverage -0.96 2.59 1.27 -2.98 -0.81
Fixed charge coverage -0.22 1.93 1.09 -1.77 -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).

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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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.