General Electric Co. (GE)
Analysis of Profitability Ratios
Beginner level
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
General Electric Co., profitability ratios
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
| 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
| 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
| 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
| 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
| 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. |