GE Aerospace GENERAL Bond

GE Stock  USD 180.44  1.72  0.94%   
GE Aerospace holds a debt-to-equity ratio of 1.004. At present, GE Aerospace's Total Debt To Capitalization is projected to slightly decrease based on the last few years of reporting. The current year's Cash Flow To Debt Ratio is expected to grow to 0.26, whereas Net Debt is forecasted to decline to about 5.7 B. . GE Aerospace's financial risk is the risk to GE Aerospace stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

GE Aerospace's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. GE Aerospace's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps GE Aerospace Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect GE Aerospace's stakeholders.
For most companies, including GE Aerospace, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for GE Aerospace, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, GE Aerospace's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book
10.4456
Book Value
17.439
Operating Margin
0.1825
Profit Margin
0.0893
Return On Assets
0.0302
At present, GE Aerospace's Change To Liabilities is projected to decrease significantly based on the last few years of reporting.
  
Check out the analysis of GE Aerospace Fundamentals Over Time.
For information on how to trade GE Aerospace Stock refer to our How to Trade GE Aerospace Stock guide.
View Bond Profile
Given the importance of GE Aerospace's capital structure, the first step in the capital decision process is for the management of GE Aerospace to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of GE Aerospace to issue bonds at a reasonable cost.
Popular NameGE Aerospace GENERAL ELEC CAP
SpecializationAerospace & Defense
Equity ISIN CodeUS3696043013
Bond Issue ISIN CodeUS36966TFU16
View All GE Aerospace Outstanding Bonds

GE Aerospace Outstanding Bond Obligations

US36962GT956US36962GT956Details
GENERAL ELEC CAPUS36962G3A02Details
US36962GX743US36962GX743Details
GENERAL ELEC CAPUS36962G4B75Details
GE 518614 05 MAY 26US36962GW752Details
GENERAL ELEC CAPUS36962G3P70Details
GENERAL ELEC CAPUS36966TAM45Details
GENERAL ELEC CAPUS36966TAS15Details
GENERAL ELEC CAPUS36962GXZ26Details
GENERAL ELEC CAPUS36966TAQ58Details
GENERAL ELEC CAPUS36966TAE29Details
GENERAL ELEC CAPUS36966TBP66Details
GENERAL ELEC CAPUS36966TBN19Details
GENERAL ELEC CAPUS36966TBV35Details
GENERAL ELECTRIC COUS369604BV43Details
GENERAL ELEC CAPUS36966TBS06Details
GENERAL ELECTRIC COUS369604BW26Details
GENERAL ELEC 4125US369604BF92Details
GENERAL ELEC 45US369604BH58Details
GENERAL ELEC CAPUS36966TBH41Details
GENERAL ELEC CAPUS36966TBG67Details
US36966TBM36US36966TBM36Details
GENERAL ELEC CAPUS36966TBK79Details
GENERAL ELEC CAPUS36966TBJ07Details
GENERAL ELEC CAPUS36966TBE10Details
GENERAL ELEC CAPUS36966TBC53Details
GENERAL ELEC CAPUS36966TBA97Details
GENERAL ELEC CAPUS36966TAU60Details
GENERAL ELEC CAPUS36966TAZ57Details
GENERAL ELEC CAPUS36966TCS96Details
GENERAL ELEC CAPUS36966TCY64Details
GENERAL ELEC CAPUS36966TCU43Details
GENERAL ELEC CAPUS36966TCK60Details
GENERAL ELEC CAPUS36966TCJ97Details
GENERAL ELEC CAPUS36966TCP57Details
GENERAL ELEC CAPUS36966TCM27Details
GENERAL ELEC CAPUS36966TCC45Details
GENERAL ELEC CAPUS36966TCA88Details
GENERAL ELEC CAPUS36966TCH32Details
GENERAL ELEC CAPUS36966TCG58Details
US369604BX09US369604BX09Details
GENERAL ELEC CAPUS36966TBZ49Details
GENERAL ELECTRIC COUS369604BY81Details
US36966TBY73US36966TBY73Details
US36966TDW99US36966TDW99Details
GENERAL ELEC CAPUS36966TDY55Details
GENERAL ELEC CAPUS36966TDX72Details
GENERAL ELEC CAPUS36966TDN90Details
GENERAL ELEC CAPUS36966TDL35Details
GENERAL ELEC CAPUS36966TDE91Details
GENERAL ELEC CAPUS36966TDC36Details
GENERAL ELEC CAPUS36966TDH23Details
GENERAL ELEC CAPUS36966TCZ30Details
GENERAL ELEC CAPUS36966TDB52Details
GENERAL ELEC CAPUS36966TDA79Details
US36966TEZ12US36966TEZ12Details
GENERAL ELEC CAPUS36966TEX63Details
GENERAL ELEC CAPUS36966TEQ13Details
GENERAL ELEC CAPUS36966TET51Details
US36966TES78US36966TES78Details
GENERAL ELEC CAPUS36966TEH14Details
GENERAL ELEC CAPUS36966TEM09Details
GENERAL ELEC CAPUS36966TEL26Details
GENERAL ELEC CAPUS36966TED00Details
GENERAL ELEC CAPUS36966TEC27Details
GENERAL ELEC CAPUS36966TGA43Details
GENERAL ELEC CAPUS36966TFU16Details
US36966TFR86US36966TFR86Details
GENERAL ELEC CAPUS36966TFZ03Details
GENERAL ELEC CAPUS36966TFX54Details
GENERAL ELEC CAPUS36966TFM99Details
GENERAL ELEC CAPUS36966TFK34Details
GENERAL ELEC CAPUS36966TFC18Details
US36966TFA51US36966TFA51Details
GENERAL ELEC CAPUS36966TFH05Details
GENERAL ELEC CAPUS36966TFF49Details
US36966THB17US36966THB17Details
US36966THF21US36966THF21Details
GENERAL ELEC CAPUS36966TGV89Details
US36966TGY29US36966TGY29Details
BNP Paribas FRNUSF1R15XK367Details
GENERAL ELEC CAPUS36966TGT34Details
GENERAL ELEC CAPUS36966TGR77Details
GENERAL ELEC CAPUS36966TGJ51Details
GENERAL ELEC CAPUS36966THZ84Details
US36966THW53US36966THW53Details
GENERAL ELEC CAPUS36966THU97Details
GENERAL ELEC CAPUS36966THJ43Details
US36966THH86US36966THH86Details
US36966THG04US36966THG04Details
US36966THN54US36966THN54Details
GENERAL ELEC CAPUS36966THK16Details
GENERAL ELEC CAPUS36966TJH68Details
US36966TJE38US36966TJE38Details
GENERAL ELEC CAPUS36966TJL70Details
GENERAL ELEC CAPUS36966TJB98Details
GENERAL ELEC CAPUS36966TKK78Details
GENERAL ELEC CAPUS36966TKJ06Details
US36966TKH40US36966TKH40Details
GENERAL ELEC CAPUS36966TKN18Details
GENERAL ELEC CAPUS36966TKM35Details
GENERAL ELEC CAPUS36966TKL51Details
GENERAL ELEC CAPUS36966TKB79Details
US36966TKA96US36966TKA96Details
GENERAL ELEC CAPUS36966TKG66Details
GENERAL ELEC CAPUS36966TKD36Details
GENERAL ELEC CAPUS36966TJV52Details
GENERAL ELEC CAPUS36966TJZ66Details
GENERAL ELEC CAPUS36966TJP84Details
GENERAL ELEC CAPUS36966TJT07Details
GENERAL ELEC CAPUS36966TJS24Details
GENERAL ELEC CAPUS36966TJR41Details
GENERAL ELEC CAPUS36966TJQ67Details
GENERAL ELEC CAPUS36966TKT87Details
GENERAL ELEC CAPUS36966TKS05Details
US36966TKR22US36966TKR22Details
GENERAL ELEC CAPUS36966TKQ49Details
GENERAL ELEC CAPUS36966TKP65Details
GENERAL ELEC CAPUS36966TKX99Details
GENERAL ELEC CAPUS36966TKW17Details
GENERAL ELEC CAPUS36966TKV34Details
US36966TKU50US36966TKU50Details

Understaning GE Aerospace Use of Financial Leverage

GE Aerospace's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures GE Aerospace's total debt position, including all outstanding debt obligations, and compares it with GE Aerospace's equity. Financial leverage can amplify the potential profits to GE Aerospace's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if GE Aerospace is unable to cover its debt costs.
Last ReportedProjected for Next Year
Short and Long Term Debt Total22.9 B21.8 B
Net DebtB5.7 B
Short Term Debt5.6 B5.4 B
Long Term Debt19.7 B18.7 B
Long Term Debt Total25.7 B24.4 B
Short and Long Term Debt1.3 B1.2 B
Net Debt To EBITDA 0.45  0.42 
Debt To Equity 0.77  0.73 
Interest Debt Per Share 20.28  19.26 
Debt To Assets 0.13  0.12 
Long Term Debt To Capitalization 0.42  0.46 
Total Debt To Capitalization 0.43  0.56 
Debt Equity Ratio 0.77  0.73 
Debt Ratio 0.13  0.12 
Cash Flow To Debt Ratio 0.25  0.26 
Please read more on our technical analysis page.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Is Industrial Conglomerates space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GE Aerospace. If investors know GE Aerospace will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GE Aerospace listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
6.064
Dividend Share
0.92
Earnings Share
5.07
Revenue Per Share
64.325
Quarterly Revenue Growth
0.058
The market value of GE Aerospace is measured differently than its book value, which is the value of GE Aerospace that is recorded on the company's balance sheet. Investors also form their own opinion of GE Aerospace's value that differs from its market value or its book value, called intrinsic value, which is GE Aerospace's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GE Aerospace's market value can be influenced by many factors that don't directly affect GE Aerospace's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GE Aerospace's value and its price as these two are different measures arrived at by different means. Investors typically determine if GE Aerospace is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GE Aerospace's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

What is Financial Leverage?

Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.

Leverage and Capital Costs

The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.

Benefits of Financial Leverage

Leverage provides the following benefits for companies:
  • Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
  • It provides a variety of financing sources by which the firm can achieve its target earnings.
  • Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.