Stock Analysis on Net

General Electric Co. (NYSE:GE)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

General Electric Co., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 3.05 3.19 3.40 3.80 4.74
Receivables turnover 4.17 4.09 4.55 4.37 5.22
Payables turnover 3.27 2.98 3.32 3.67 4.20
Working capital turnover 7.24 7.93 4.94 2.26 7.03
Average No. Days
Average inventory processing period 120 114 107 96 77
Add: Average receivable collection period 87 89 80 83 70
Operating cycle 207 203 187 179 147
Less: Average payables payment period 112 123 110 100 87
Cash conversion cycle 95 80 77 79 60

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. General Electric Co. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. General Electric Co. receivables turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. General Electric Co. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. General Electric Co. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. General Electric Co. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. General Electric Co. number of days of receivables outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period. General Electric Co. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. General Electric Co. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. General Electric Co. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Inventory Turnover

General Electric Co., inventory turnover 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)
Cost of equipment and services sold 50,392 55,535 53,896 60,421 66,911
Inventories, including deferred inventory costs 16,528 17,403 15,847 15,890 14,104
Short-term Activity Ratio
Inventory turnover1 3.05 3.19 3.40 3.80 4.74
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.88 0.81 0.75 0.78 0.94
Caterpillar Inc. 2.58 2.54 2.53 2.55 3.25
Cummins Inc. 4.55 3.81 4.21 4.36 5.05
Honeywell International Inc. 3.72 4.04 4.29 4.94 5.51
Lockheed Martin Corp. 18.87 18.68 19.45 16.01 14.22
RTX Corp. 4.83 5.03 5.65 5.11 5.21
Inventory Turnover, Sector
Capital Goods 2.35 2.30 2.29 2.27 2.62
Inventory Turnover, Industry
Industrials 3.92 3.98 3.87 3.60 3.95

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
Inventory turnover = Cost of equipment and services sold ÷ Inventories, including deferred inventory costs
= 50,392 ÷ 16,528 = 3.05

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. General Electric Co. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

General Electric Co., receivables turnover 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)
Sales of equipment and services 64,565 73,602 71,090 73,022 87,487
Current receivables 15,466 17,976 15,620 16,691 16,769
Short-term Activity Ratio
Receivables turnover1 4.17 4.09 4.55 4.37 5.22
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 29.37 26.46 23.58 29.75 23.44
Caterpillar Inc. 6.86 6.39 5.68 5.33 5.92
Cummins Inc. 6.10 5.40 6.02 5.19 6.42
Honeywell International Inc. 4.87 4.77 5.04 4.78 4.90
Lockheed Martin Corp. 31.69 26.34 34.15 33.06 25.59
RTX Corp. 6.36 7.36 6.66 6.11 5.70
Receivables Turnover, Sector
Capital Goods 7.73 7.34 7.55 7.20 7.41
Receivables Turnover, Industry
Industrials 8.16 7.79 7.59 7.42 7.67

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
Receivables turnover = Sales of equipment and services ÷ Current receivables
= 64,565 ÷ 15,466 = 4.17

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. General Electric Co. receivables turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Payables Turnover

General Electric Co., payables turnover 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)
Cost of equipment and services sold 50,392 55,535 53,896 60,421 66,911
Accounts payable and equipment project payables 15,408 18,644 16,243 16,476 15,926
Short-term Activity Ratio
Payables turnover1 3.27 2.98 3.32 3.67 4.20
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 5.86 6.18 6.40 4.94 4.63
Caterpillar Inc. 5.41 4.76 4.36 4.75 6.15
Cummins Inc. 6.06 5.02 6.07 5.29 6.94
Honeywell International Inc. 3.36 3.53 3.40 3.86 4.25
Lockheed Martin Corp. 25.56 27.25 74.34 64.48 40.16
RTX Corp. 5.31 5.40 5.93 5.56 5.28
Payables Turnover, Sector
Capital Goods 5.52 5.24 5.67 5.51 5.64
Payables Turnover, Industry
Industrials 7.80 7.56 7.79 7.38 7.40

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
Payables turnover = Cost of equipment and services sold ÷ Accounts payable and equipment project payables
= 50,392 ÷ 15,408 = 3.27

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. General Electric Co. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Working Capital Turnover

General Electric Co., working capital turnover 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)
Current assets 59,799 66,234 66,348 88,412 90,016
Less: Current liabilities 50,876 56,947 51,953 56,069 77,572
Working capital 8,923 9,287 14,395 32,343 12,444
 
Sales of equipment and services 64,565 73,602 71,090 73,022 87,487
Short-term Activity Ratio
Working capital turnover1 7.24 7.93 4.94 2.26 7.03
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 5.78 3.42 2.34 1.69 15.57
Caterpillar Inc. 5.23 4.62 3.54 2.84 4.04
Cummins Inc. 14.84 9.27 4.60 3.56 7.54
Honeywell International Inc. 7.39 7.03 5.86 3.64 5.92
Lockheed Martin Corp. 18.85 12.93 11.52 12.01 19.15
RTX Corp. 41.62 20.15 9.75 7.52 26.47
Working Capital Turnover, Sector
Capital Goods 8.78 6.84 4.75 3.19 9.09
Working Capital Turnover, Industry
Industrials 11.98 9.68 6.57 4.40 10.12

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
Working capital turnover = Sales of equipment and services ÷ Working capital
= 64,565 ÷ 8,923 = 7.24

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. General Electric Co. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Average Inventory Processing Period

General Electric Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 3.05 3.19 3.40 3.80 4.74
Short-term Activity Ratio (no. days)
Average inventory processing period1 120 114 107 96 77
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 415 452 486 467 388
Caterpillar Inc. 141 144 144 143 112
Cummins Inc. 80 96 87 84 72
Honeywell International Inc. 98 90 85 74 66
Lockheed Martin Corp. 19 20 19 23 26
RTX Corp. 76 73 65 71 70
Average Inventory Processing Period, Sector
Capital Goods 155 158 159 161 139
Average Inventory Processing Period, Industry
Industrials 93 92 94 101 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.05 = 120

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. General Electric Co. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

General Electric Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 4.17 4.09 4.55 4.37 5.22
Short-term Activity Ratio (no. days)
Average receivable collection period1 87 89 80 83 70
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 12 14 15 12 16
Caterpillar Inc. 53 57 64 68 62
Cummins Inc. 60 68 61 70 57
Honeywell International Inc. 75 77 72 76 75
Lockheed Martin Corp. 12 14 11 11 14
RTX Corp. 57 50 55 60 64
Average Receivable Collection Period, Sector
Capital Goods 47 50 48 51 49
Average Receivable Collection Period, Industry
Industrials 45 47 48 49 48

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.17 = 87

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. General Electric Co. number of days of receivables outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Operating Cycle

General Electric Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 120 114 107 96 77
Average receivable collection period 87 89 80 83 70
Short-term Activity Ratio
Operating cycle1 207 203 187 179 147
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 427 466 501 479 404
Caterpillar Inc. 194 201 208 211 174
Cummins Inc. 140 164 148 154 129
Honeywell International Inc. 173 167 157 150 141
Lockheed Martin Corp. 31 34 30 34 40
RTX Corp. 133 123 120 131 134
Operating Cycle, Sector
Capital Goods 202 208 207 212 188
Operating Cycle, Industry
Industrials 138 139 142 150 140

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 120 + 87 = 207

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. General Electric Co. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Payables Payment Period

General Electric Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 3.27 2.98 3.32 3.67 4.20
Short-term Activity Ratio (no. days)
Average payables payment period1 112 123 110 100 87
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 62 59 57 74 79
Caterpillar Inc. 67 77 84 77 59
Cummins Inc. 60 73 60 69 53
Honeywell International Inc. 109 103 107 95 86
Lockheed Martin Corp. 14 13 5 6 9
RTX Corp. 69 68 62 66 69
Average Payables Payment Period, Sector
Capital Goods 66 70 64 66 65
Average Payables Payment Period, Industry
Industrials 47 48 47 49 49

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.27 = 112

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. General Electric Co. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Cash Conversion Cycle

General Electric Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 120 114 107 96 77
Average receivable collection period 87 89 80 83 70
Average payables payment period 112 123 110 100 87
Short-term Activity Ratio
Cash conversion cycle1 95 80 77 79 60
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 365 407 444 405 325
Caterpillar Inc. 127 124 124 134 115
Cummins Inc. 80 91 88 85 76
Honeywell International Inc. 64 64 50 55 55
Lockheed Martin Corp. 17 21 25 28 31
RTX Corp. 64 55 58 65 65
Cash Conversion Cycle, Sector
Capital Goods 136 138 143 146 123
Cash Conversion Cycle, Industry
Industrials 91 91 95 101 91

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 120 + 87112 = 95

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. General Electric Co. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.