GE Financial Statements and Financial Ratios Analyzed from 2015 to 2019
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!
Sample Financial Report
Sample Table of Contents for Financial Reports
Table of Contents
Page Count: 88 Pages
- Disclaimer 3
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
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
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
|R & D|
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
|Short Term Investment||48,521||33,508||38,696||44,313||31,973|
|LT Debt - Current||-||-||-||-||-|
|Total Current Liabilities||75,918||68,269||79,358||82,557||63,572|
|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
|Net Working Capital||51,341||45,746|
GE 2019 Asset Utilization
|Total Asset Turnover||0.36||0.31|
|Fixed Asset Turnover||2.20||2.22|
|Days Sales Outstanding||64.28||55.10|
|Accounts Receivable Turnover||5.68||6.62|
|Working Capital Turnover||1.85||2.12|
|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
|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%|
GE 2019 Long-term Debt
|Times Interest Earned||1.27||(3.40)|