GE Financial Statements and Financial Ratios Analyzed from 2015 to 2019

Expert GE Financial Report & Analysis by Paul Borosky, MBA.

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Hey All,

Thanks for visiting my GE Financial Report page. On this page, you will be able to find preliminary information about GE current financial performance as well as some historical track records and trends. 

For a more detailed examination of GE financial performance, please check out the "Financial Report".  In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Summary analysis by myself of important income statement, balance sheet, and financial ratio trends and other happenings.
  • Five year’s worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is were I use plain English to explain concepts.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Sample Table of Contents for Financial Reports

Table of Contents

Page Count: 88 Pages

  • Disclaimer 3
    Acknowledgments 4
    Forward 5
    About the Author 7
    Company Summary 8
    Financial Statement Introduction 10
    Income Statement 11
    Walmart’s Income Statement – Summary Analysis 12
    Income Statement Discussion 12
    Balance Sheet 21
    Balance Sheet – Summary Analysis 22
    Balance Sheet Discussion 23
    Financial Ratios 38
    Liquidity Ratios 39
    Liquidity Ratios - Summary Analysis 39
    Liquidity Ratios Discussion 40
    Current Ratio 40
    Quick Ratio 41
    Cash Ratio 42
    Other Liquidity Ratios 42
    Net Operating Working Capital 42
    Asset Ratios 44
    Asset Utilization Ratios - Summary Analysis 45
    Asset Utilization Ratios Discussion 46
    Total Asset Turnover 46
    Fixed Asset Turnover 46
    Days Sales Outstanding 47
    Inventory Turnover 48
    Accounts Receivable Turnover 49
    Accounts Payable Turnover 50
    Other Asset Ratio Calculations 50
    Working Capital Turnover 50
    Average Days in Inventory 51
    Average Days Payable 51
    Profitability Ratios 52
    Profitability Ratios - Summary Analysis 53
    Profitability Ratios Discussion 53
    Return on Assets (ROA) 53
    Return on Equity (ROE) 54
    Profit Margin 55
    Gross Profit Margin 56
    Operating Profit Margin 56
    Basic Earnings Power 57
    ROCE 57
    Capital Employed 58
    Debt Ratios 59
    Walmart’s Debt Ratios - Summary Analysis 59
    Debt Ratios Discussion 60
    Long-Term Debt Ratio 60
    Debt to Equity Ratio 61
    Times Interest Earned 61
    WACC 63
    Book Value of WACC 63
    Free Cash Flow (FCF) 65
    Free Cash Flows – 2016 - 2020 65
    Free Cash Flows – 5 Year Projections 66
    Income Statement – Projections for 5 years 67
    Income Statement – 5 Year Projections 67
    Balance Sheet – Projections for 5 years 68
    Balance Sheet – 5 Year Projections 68
    Company Valuation and Intrinsic Stock Price 70
    Appendix 1: Summarized Income Statement 71
    Appendix 2: Income Statement – Percent of Sales 72
    Appendix 3: Income Statement – Year over Year Growth 73
    Appendix 4: Summarized Balance Sheet 74
    Appendix 5: Balance Sheet as Percent of Total Assets 76
    Appendix 6: Summarized Financial Ratios 77

General Electric (GE) Brief Summary

GE’s headquarters is located in Boston, Massachusetts.  The company competes in the industrial sector.  Specifically, the specialty industrial machinery industry.  At present, the organization employs approximately 200,000 individuals.  General Electric sells its products on a global scale, with a heavy presence in the United States, Europe, Asia, and the Middle East.  Their main revenue generators focus on power generators like turbines, generators, and power generation apparatuses.

From a financial perspective, GE’s market capitalization is about $58.5 billion.  Their beta is approximately .96.  This indicates that the company’s stock is slightly less risky as compared to the overall market.  Their stock price range for the last 52 weeks has been between $5.48 to $13.26.  In the last year, their dividend payout has dropped significantly.  At present, the dividend yield is .58%.

GE Financial Report Sources

“GE 2019 Company Analysis… For Beginners: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA. and owner of Quality Business Plan.  In this report, I used GE 2018 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and 2019 10k annual report as the basis for information gathering. 

 

Section 1: GE Income Statement Analyzed 2015 to 2019

In this section, I walk through a broad definition as to what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of GE important income statement line item trends from 2015 to 2019, in most cases.

GE Revenue Growth.

In 2015, GE generated approximately $117 billion in revenues.  In the next year, the revenue growth would lead them to exceed $123 billion in 2016.  However, in the next three years, revenue growth will continually slide until it reached $95.2 billion in 2019.  As for an average annual growth for revenues for the last five years, this would be -4.6%.  With an exceptional economy over the last several years, the organization should have managed at least some kind of meager growth.  But alas they did not.  From this, investors should be wary of investing in their stock until some type of changes is present in their potential revenue growth.  Just a thought.

GE Income Statement 2019

Column1 2019 2018 2017 2016 2015
Revenues                    95,214                    97,012                    99,279                  123,693                    117,386
COGS                    48,406                    50,244                    52,483                    62,440                      59,905
Gross Profit                    46,808                    46,768                    46,796                    61,253                      57,481
SG&A                    13,949                    14,643                    14,257                    18,377                      17,831
Depreciation                      4,026                      4,419                      4,332                      4,997                        4,847
R & D
Other
Operating Expenses                    96,287                  120,320                  112,707                  114,663                    109,200
EBIT                      5,376                   (16,221)                     (6,690)                    14,055                      11,649
Other Income                      2,222                      2,321                      2,083                            -                             -
Interest Expense                      4,227                      4,766                      4,655                      5,025                        3,463
EBT                      1,149                   (20,987)                   (11,345)                      9,030                        8,186
Taxes                        (726)                          (93)                      2,808                         464                      (6,485)
Net Income                   (4,912)                 (22,443)                   (8,849)                     8,540                     (5,795)

Section 2: GE Balance Sheet Analyzed from 2015 to 2019

For GE balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define their balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019.  Next, I then offer a summary analysis of their important balance sheet line items.

GE Short-term Investments.

Surprisingly enough, GE does actually have some short-term investments.  In 2015, the company had approximately $31.9 billion in short-term investments.  This position would grow to $44.3 billion in 2016.  However, in the next two years, their short-term investments would fall to $33.5 billion in 2018.  As of 2019 though, the short-term investments would climb to 48.5 billion dollars.  A possible reason for this increase could be that the organization is selling off property, plant, and equipment and saving the funds for future usage.

GE Summary Balance Sheet 2019

Column1 2019 2018 2017 2016 2015
Cash                      36,394                  31,124                  43,299                  48,129                  70,843
Short Term Investment                      48,521                  33,508                  38,696                  44,313                  31,973
Account Receivable                      16,769                  14,645                  24,438                  24,076                  27,022
Inventory                      14,104                  13,803                  21,923                  22,354                  22,515
Other                              -                         -                         -                         -                         -
Current Assets                  135,215              123,547              149,236              158,804              152,353
Net PPE                      43,290                  43,611                  53,874                  50,518                  54,095
Goodwill                      26,734                  33,974                  83,968                  70,438                  65,526
Other
Total Assets                  266,048              311,072              377,945              365,183              492,692
Accounts Payable                      15,926                  13,826                  15,153                  14,435                  13,680
Accrued Expense                              -                         -                         -                         -                         -
Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                      22,072                  12,776                  24,036                  30,714                  49,892
LT Debt - Current                              -                         -                         -                         -                         -
Other                              -                         -                         -                         -                         -
Total Current Liabilities                      75,918                  68,269                  79,358                  82,557                  63,572
LT Debt                      67,155                  88,949                108,575                105,080                145,301
Other                              -                         -                         -                         -                         -
Total Liabilities                  236,187              259,591              292,561              284,668              389,582
Common Stock                           702                       702                       702                       702                       702
Treasury                      82,797                  83,925                  84,902                  83,038                  63,539
Retained Earnings                      87,732                  93,109                125,682                139,532                140,020
Other                              -                         -
Total Equity                    29,861                51,481                81,986                77,491              100,138
Total Equity & Liability                  266,048              311,072              377,945              365,183              492,692

Section 3: GE Financial Ratios Analyzed from 2015 to 2019

For this section, I have chosen several different financial ratios to review for GE from 2015 to 2019.  In reviewing each of their financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of their important Financial ratios. 

GE Current Ratio.

GE ended 2015 with the current ratio of 2.4.  This indicates that the organization well exceeds industry averages for a current ratio.  A better strategy would be for the organization to either take some of their current assets and move it into long-term investments like property, plant, and equipment or even pay out additional dividends to shareholders.  In the next four years, the company would improve its current ratio, ending 2019 with a 1.78 current ratio.  In my opinion, this current ratio could fall as low as 1.5 and still be considered an excellent position.

GE Total Asset Turnover.

In 2015, GE had a total asset turnover of .24.  In the next four years, this ratio would fluctuate between .26 in 2017 to .36 in 2019.  From an investor’s perspective, this seems like the executive team has little control or functioning business models related to exploiting their assets optimally.  From this, the executive team needs to reassess its operational business models and determine which assets are needed to generate revenues and which ones may be liquidated for cash.

GE Return on Assets.

In 2015, GE had a return on assets of -1.18%.  The company would only do worse over the next three years ending 2018 and a -7.21% return on assets.  Fortunately, there is a silver lining, which is that the firm improved the return on assets to a -1.85 and 2019.  It seems like GE has had rough several years in relation to managing its assets and operations.  Because of these challenges, the executive team may want to step back and reassess their business models from top to bottom.  It really seems like the organization needs to get their stuff together and optimize operations.  Hell, even a clean slate with rethinking all business models should be on the table.

GE Debt ratio.

GE’s debt ratio ended 2015 at 29.4%.  In the next four years, the organization would reduce its debt ratio to 25.2% in 2019.  Lowering their debt ratio does help the organization reduce their overall risk in the marketplace.  Because they have such shoddy operations seemingly, reducing the debt ratio may help alleviate some concerns for investors.  However, by reducing its debt ratio, the organization is also missing out on opportunities to make money on borrowed money.  Because of this, investors may come to the conclusion that GE has very little prospects in the market or research and development to generate significant changes in the revenues.  As a result, if the only thing they can do to improve their overall situation for the company is to reduce their debt than so be it.

GE Liquidity Ratios 2019

Ratios 2019 2018 2017 2016 2015
Current Ratio                           1.78                    1.81
Cash Ratio                           0.48                    0.46
Quick Ratio                           1.60                    1.61
Net Working Capital                       51,341                45,746

GE 2019 Asset Utilization

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           0.36                    0.31
Fixed Asset Turnover                           2.20                    2.22
Days Sales Outstanding                         64.28                  55.10
Inventory Turnover                           6.75                    7.03
Accounts Receivable Turnover                           5.68                    6.62
Working Capital Turnover                           1.85                    2.12
AP Turnover                           5.98                    7.02
Average Days Inventory                       106.35                100.27
Average Days Payable                       120.09                100.44
Cash Conversion Cycle                         50.54                  54.93

GE 2019 Profitability Ratios

Ratios 2019 2018 2017 2016 2015
Return on Assets -1.85% -7.21%
Return on Equity -16.45% -43.59%
Net Profit Margin -5.16% -23.13%
Gross Profit Margin 49.16% 48.21%
Operating Profit Margin 5.65% -16.72%
Basic Earning Power 2.02% -5.21%
ROCE 2.83% -6.68%
Capital Employed                     190,130              242,803
ROIC 9.27% -18.07%

GE 2019 Long-term Debt

Ratios 2019 2018 2017 2016 2015
Debt Ratio 25.24% 28.59%
Debt/Equity 224.89% 172.78%
Times Interest Earned                           1.27                  (3.40)