Microsoft Excel LibreOffice Calc

General Electric Co. (GE)


Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

General Electric Co., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Return on Sales
Gross profit margin 18.38% 18.78% 20.75% 21.85% 23.84%
Operating profit margin 9.54% 9.06% 12.53% 13.83% 30.42%
Net profit margin -19.69% -5.11% 8.00% -5.79% 14.27%
Return on Investment
Return on equity (ROE) -72.16% -9.00% 11.65% -6.23% 11.89%
Return on assets (ROA) -7.23% -1.53% 2.42% -1.24% 2.35%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. General Electric Co.’s gross profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. General Electric Co.’s operating profit margin ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. General Electric Co.’s net profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. General Electric Co.’s ROE deteriorated from 2016 to 2017 and from 2017 to 2018.
ROA A profitability ratio calculated as net income divided by total assets. General Electric Co.’s ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

Gross Profit Margin

General Electric Co., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Gross profit from sales 20,873  21,258  22,907  23,115  25,447 
Sales of goods and services 113,544  113,192  110,390  105,808  106,758 
Profitability Ratio
Gross profit margin1 18.38% 18.78% 20.75% 21.85% 23.84%
Benchmarks
Gross Profit Margin, Competitors2
3M Co. 49.09% 49.46% 50.05% 49.19% 48.31%
Danaher Corp. 55.83% 55.61% 55.29% 52.34% 52.44%
Honeywell International Inc. 30.52% 31.97% 30.92% 30.67% 28.16%

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).

1 2018 Calculation
Gross profit margin = 100 × Gross profit from sales ÷ Sales of goods and services
= 100 × 20,873 ÷ 113,544 = 18.38%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. General Electric Co.’s gross profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Operating Profit Margin

General Electric Co., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Operating earnings 10,834  10,254  13,827  14,634  32,474 
Sales of goods and services 113,544  113,192  110,390  105,808  106,758 
Profitability Ratio
Operating profit margin1 9.54% 9.06% 12.53% 13.83% 30.42%
Benchmarks
Operating Profit Margin, Competitors2
3M Co. 22.00% 24.70% 23.99% 22.94% 22.42%
Danaher Corp. 17.11% 16.48% 16.29% 16.87% 17.23%
Honeywell International Inc. 16.04% 17.64% 17.00% 17.70% 14.47%
Operating Profit Margin, Sector
General Industrials 13.53% 13.87% 15.50% 16.33% 24.58%
Operating Profit Margin, Industry
Industrials 14.04% 13.70% 12.78% 13.66% 16.06%

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).

1 2018 Calculation
Operating profit margin = 100 × Operating earnings ÷ Sales of goods and services
= 100 × 10,834 ÷ 113,544 = 9.54%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. General Electric Co.’s operating profit margin ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Net Profit Margin

General Electric Co., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ 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 
Profitability Ratio
Net profit margin1 -19.69% -5.11% 8.00% -5.79% 14.27%
Benchmarks
Net Profit Margin, Competitors2
3M Co. 16.33% 15.35% 16.77% 15.96% 15.57%
Danaher Corp. 13.33% 13.60% 15.13% 16.33% 13.05%
Honeywell International Inc. 16.18% 4.08% 12.24% 12.36% 10.52%
Net Profit Margin, Sector
General Industrials -3.65% 1.58% 10.80% 3.50% 13.59%
Net Profit Margin, Industry
Industrials 6.94% 7.55% 8.82% 7.36% 9.90%

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).

1 2018 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to the Company ÷ Sales of goods and services
= 100 × -22,355 ÷ 113,544 = -19.69%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. General Electric Co.’s net profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Return on Equity (ROE)

General Electric Co., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ 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 
Profitability Ratio
ROE1 -72.16% -9.00% 11.65% -6.23% 11.89%
Benchmarks
ROE, Competitors2
3M Co. 54.60% 42.01% 49.04% 41.28% 37.81%
Danaher Corp. 9.40% 9.45% 11.10% 14.17% 11.11%
Honeywell International Inc. 37.21% 9.58% 24.83% 26.08% 24.01%
ROE, Sector
General Industrials -8.71% 2.69% 16.53% 4.50% 14.82%
ROE, Industry
Industrials 22.77% 21.24% 24.02% 17.80% 21.32%

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).

1 2018 Calculation
ROE = 100 × Net earnings (loss) attributable to the Company ÷ Total GE shareowners’ equity
= 100 × -22,355 ÷ 30,981 = -72.16%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. General Electric Co.’s ROE deteriorated from 2016 to 2017 and from 2017 to 2018.

Return on Assets (ROA)

General Electric Co., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ 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 
Profitability Ratio
ROA1 -7.23% -1.53% 2.42% -1.24% 2.35%
Benchmarks
ROA, Competitors2
3M Co. 14.65% 12.79% 15.35% 14.77% 15.85%
Danaher Corp. 5.54% 5.34% 5.64% 6.96% 7.02%
Honeywell International Inc. 11.71% 2.79% 8.88% 9.67% 9.33%
ROA, Sector
General Industrials -1.68% 0.62% 4.27% 1.10% 3.55%
ROA, Industry
Industrials 4.68% 4.77% 5.51% 4.25% 5.29%

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).

1 2018 Calculation
ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × -22,355 ÷ 309,129 = -7.23%

2 Click competitor name to see calculations.

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