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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 0.77 0.89 0.87 2.11 3.21
Debt to equity (including operating lease liability) 0.84 0.96 0.94 2.20 3.32
Debt to capital 0.43 0.47 0.47 0.68 0.76
Debt to capital (including operating lease liability) 0.46 0.49 0.49 0.69 0.77
Debt to assets 0.13 0.17 0.18 0.30 0.34
Debt to assets (including operating lease liability) 0.14 0.19 0.19 0.31 0.35
Financial leverage 5.96 5.16 4.93 7.13 9.40
Coverage Ratios
Interest coverage 10.12 1.88 -0.96 2.59 1.27
Fixed charge coverage 5.25 1.35 -0.22 1.93 1.09

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. General Electric Co. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. General Electric Co. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.

Debt to Equity

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 1,253 3,757 4,361 4,778 23,727
Long-term borrowings 19,711 28,593 30,824 70,288 67,155
Total debt 20,964 32,350 35,185 75,066 90,882
 
Total GE shareholders’ equity 27,378 36,366 40,310 35,552 28,316
Solvency Ratio
Debt to equity1 0.77 0.89 0.87 2.11 3.21
Benchmarks
Debt to Equity, Competitors2
Boeing Co.
Caterpillar Inc. 1.94 2.33 2.29 2.42 2.58
Cummins Inc. 0.76 0.88 0.49 0.52 0.32
Honeywell International Inc. 1.29 1.17 1.06 1.28 0.87
Lockheed Martin Corp. 2.55 1.68 1.07 2.02 4.05
RTX Corp. 0.73 0.44 0.43 0.44 1.04
Debt to Equity, Sector
Capital Goods 1.65 1.40 1.30 1.81 2.19
Debt to Equity, Industry
Industrials 1.50 1.37 1.27 1.78 1.92

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity = Total debt ÷ Total GE shareholders’ equity
= 20,964 ÷ 27,378 = 0.77

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 1,253 3,757 4,361 4,778 23,727
Long-term borrowings 19,711 28,593 30,824 70,288 67,155
Total debt 20,964 32,350 35,185 75,066 90,882
Operating lease liabilities (included in All other liabilities) 1,973 2,393 2,848 2,973 3,162
Total debt (including operating lease liability) 22,937 34,743 38,033 78,039 94,044
 
Total GE shareholders’ equity 27,378 36,366 40,310 35,552 28,316
Solvency Ratio
Debt to equity (including operating lease liability)1 0.84 0.96 0.94 2.20 3.32
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Boeing Co.
Caterpillar Inc. 1.97 2.37 2.33 2.46 2.62
Cummins Inc. 0.81 0.93 0.54 0.57 0.38
Honeywell International Inc. 1.36 1.23 1.11 1.32 0.90
Lockheed Martin Corp. 2.73 1.81 1.19 2.21 4.40
RTX Corp. 0.76 0.47 0.46 0.47 1.11
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods 1.72 1.46 1.36 1.88 2.29
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.68 1.53 1.42 1.94 2.03

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total GE shareholders’ equity
= 22,937 ÷ 27,378 = 0.84

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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Debt to Capital

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 1,253 3,757 4,361 4,778 23,727
Long-term borrowings 19,711 28,593 30,824 70,288 67,155
Total debt 20,964 32,350 35,185 75,066 90,882
Total GE shareholders’ equity 27,378 36,366 40,310 35,552 28,316
Total capital 48,342 68,716 75,495 110,618 119,198
Solvency Ratio
Debt to capital1 0.43 0.47 0.47 0.68 0.76
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.49 1.39 1.35 1.40 1.46
Caterpillar Inc. 0.66 0.70 0.70 0.71 0.72
Cummins Inc. 0.43 0.47 0.33 0.34 0.24
Honeywell International Inc. 0.56 0.54 0.51 0.56 0.46
Lockheed Martin Corp. 0.72 0.63 0.52 0.67 0.80
RTX Corp. 0.42 0.31 0.30 0.31 0.51
Debt to Capital, Sector
Capital Goods 0.62 0.58 0.56 0.64 0.69
Debt to Capital, Industry
Industrials 0.60 0.58 0.56 0.64 0.66

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,964 ÷ 48,342 = 0.43

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 1,253 3,757 4,361 4,778 23,727
Long-term borrowings 19,711 28,593 30,824 70,288 67,155
Total debt 20,964 32,350 35,185 75,066 90,882
Operating lease liabilities (included in All other liabilities) 1,973 2,393 2,848 2,973 3,162
Total debt (including operating lease liability) 22,937 34,743 38,033 78,039 94,044
Total GE shareholders’ equity 27,378 36,366 40,310 35,552 28,316
Total capital (including operating lease liability) 50,315 71,109 78,343 113,591 122,360
Solvency Ratio
Debt to capital (including operating lease liability)1 0.46 0.49 0.49 0.69 0.77
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Boeing Co. 1.47 1.37 1.34 1.39 1.43
Caterpillar Inc. 0.66 0.70 0.70 0.71 0.72
Cummins Inc. 0.45 0.48 0.35 0.36 0.28
Honeywell International Inc. 0.58 0.55 0.53 0.57 0.47
Lockheed Martin Corp. 0.73 0.64 0.54 0.69 0.81
RTX Corp. 0.43 0.32 0.31 0.32 0.53
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods 0.63 0.59 0.58 0.65 0.70
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.63 0.60 0.59 0.66 0.67

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 22,937 ÷ 50,315 = 0.46

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) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Debt to Assets

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 1,253 3,757 4,361 4,778 23,727
Long-term borrowings 19,711 28,593 30,824 70,288 67,155
Total debt 20,964 32,350 35,185 75,066 90,882
 
Total assets 163,045 187,788 198,874 253,452 266,048
Solvency Ratio
Debt to assets1 0.13 0.17 0.18 0.30 0.34
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.38 0.42 0.42 0.42 0.20
Caterpillar Inc. 0.43 0.45 0.46 0.47 0.48
Cummins Inc. 0.21 0.26 0.18 0.18 0.12
Honeywell International Inc. 0.33 0.31 0.30 0.35 0.27
Lockheed Martin Corp. 0.33 0.29 0.23 0.24 0.27
RTX Corp. 0.27 0.20 0.20 0.20 0.31
Debt to Assets, Sector
Capital Goods 0.29 0.28 0.27 0.31 0.31
Debt to Assets, Industry
Industrials 0.30 0.29 0.29 0.32 0.32

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,964 ÷ 163,045 = 0.13

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 2021 to 2022 and from 2022 to 2023.

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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 1,253 3,757 4,361 4,778 23,727
Long-term borrowings 19,711 28,593 30,824 70,288 67,155
Total debt 20,964 32,350 35,185 75,066 90,882
Operating lease liabilities (included in All other liabilities) 1,973 2,393 2,848 2,973 3,162
Total debt (including operating lease liability) 22,937 34,743 38,033 78,039 94,044
 
Total assets 163,045 187,788 198,874 253,452 266,048
Solvency Ratio
Debt to assets (including operating lease liability)1 0.14 0.19 0.19 0.31 0.35
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Boeing Co. 0.40 0.43 0.43 0.43 0.21
Caterpillar Inc. 0.44 0.46 0.46 0.48 0.49
Cummins Inc. 0.23 0.28 0.19 0.20 0.15
Honeywell International Inc. 0.35 0.33 0.32 0.36 0.28
Lockheed Martin Corp. 0.36 0.32 0.26 0.26 0.29
RTX Corp. 0.28 0.21 0.21 0.21 0.33
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods 0.30 0.30 0.29 0.33 0.32
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.33 0.33 0.32 0.35 0.34

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 22,937 ÷ 163,045 = 0.14

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 2021 to 2022 and from 2022 to 2023.

Financial Leverage

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Total assets 163,045 187,788 198,874 253,452 266,048
Total GE shareholders’ equity 27,378 36,366 40,310 35,552 28,316
Solvency Ratio
Financial leverage1 5.96 5.16 4.93 7.13 9.40
Benchmarks
Financial Leverage, Competitors2
Boeing Co.
Caterpillar Inc. 4.49 5.16 5.02 5.11 5.38
Cummins Inc. 3.62 3.38 2.80 2.81 2.63
Honeywell International Inc. 3.88 3.73 3.47 3.68 3.17
Lockheed Martin Corp. 7.67 5.71 4.64 8.43 15.20
RTX Corp. 2.71 2.19 2.21 2.25 3.34
Financial Leverage, Sector
Capital Goods 5.75 4.94 4.71 5.75 7.07
Financial Leverage, Industry
Industrials 5.04 4.64 4.43 5.50 5.99

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Financial leverage = Total assets ÷ Total GE shareholders’ equity
= 163,045 ÷ 27,378 = 5.96

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 increased from 2021 to 2022 and from 2022 to 2023.

Interest Coverage

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company 9,481 225 (6,520) 5,704 (4,979)
Add: Net income attributable to noncontrolling interest (38) 67 (71) (158) 67
Less: Earnings (loss) from discontinued operations, net of taxes 414 (644) (3,195) (126) (5,335)
Add: Income tax expense 1,162 476 (287) (475) 726
Add: Interest and other financial charges 1,118 1,607 1,876 3,273 4,227
Earnings before interest and tax (EBIT) 11,309 3,019 (1,807) 8,470 5,376
Solvency Ratio
Interest coverage1 10.12 1.88 -0.96 2.59 1.27
Benchmarks
Interest Coverage, Competitors2
Boeing Co. 0.18 -0.98 -0.88 -5.71 -2.19
Caterpillar Inc. 26.66 20.80 17.88 8.80 19.62
Cummins Inc. 5.34 15.17 25.78 24.38 27.00
Honeywell International Inc. 10.36 16.41 22.09 17.75 22.17
Lockheed Martin Corp. 9.84 11.72 14.27 14.93 12.09
RTX Corp. 3.32 5.64 4.71 -0.65 5.65
Interest Coverage, Sector
Capital Goods 6.39 4.80 3.97 2.06 4.94
Interest Coverage, Industry
Industrials 6.92 5.50 6.00 2.09 4.43

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 11,309 ÷ 1,118 = 10.12

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 2021 to 2022 and from 2022 to 2023.

Fixed Charge Coverage

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company 9,481 225 (6,520) 5,704 (4,979)
Add: Net income attributable to noncontrolling interest (38) 67 (71) (158) 67
Less: Earnings (loss) from discontinued operations, net of taxes 414 (644) (3,195) (126) (5,335)
Add: Income tax expense 1,162 476 (287) (475) 726
Add: Interest and other financial charges 1,118 1,607 1,876 3,273 4,227
Earnings before interest and tax (EBIT) 11,309 3,019 (1,807) 8,470 5,376
Add: Operating lease expense 820 1,055 1,081 1,072 1,176
Earnings before fixed charges and tax 12,129 4,074 (726) 9,542 6,552
 
Interest and other financial charges 1,118 1,607 1,876 3,273 4,227
Operating lease expense 820 1,055 1,081 1,072 1,176
Preferred stock dividends and other 295 289 237 474 460
Preferred stock dividends and other, tax adjustment1 78 77 63 126 122
Preferred stock dividends and other, after tax adjustment 373 366 300 600 582
Fixed charges 2,311 3,028 3,257 4,945 5,985
Solvency Ratio
Fixed charge coverage2 5.25 1.35 -0.22 1.93 1.09
Benchmarks
Fixed Charge Coverage, Competitors3
Boeing Co. 0.31 -0.70 -0.64 -4.75 -1.19
Caterpillar Inc. 19.73 14.92 12.73 6.58 13.01
Cummins Inc. 4.01 8.85 10.72 9.60 9.94
Honeywell International Inc. 8.13 11.00 13.67 11.49 14.06
Lockheed Martin Corp. 7.81 8.44 9.95 11.12 9.12
RTX Corp. 2.81 4.40 3.66 -0.22 4.31
Fixed Charge Coverage, Sector
Capital Goods 4.86 3.60 3.05 1.71 3.67
Fixed Charge Coverage, Industry
Industrials 4.47 3.57 3.93 1.63 2.98

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Preferred stock dividends and other, tax adjustment = (Preferred stock dividends and other × U.S. federal statutory income tax rate) ÷ (1 − U.S. federal statutory income tax rate)
= (295 × 21.00%) ÷ (1 − 21.00%) = 78

2 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 12,129 ÷ 2,311 = 5.25

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 2021 to 2022 and from 2022 to 2023.