GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » GE Aerospace (NYSE:GE) » Definitions » Return-on-Tangible-Asset

GE Aerospace (NYSE:GE) Return-on-Tangible-Asset

: 4.52% (As of Dec. 2023)
View and export this data going back to 1892. Start your Free Trial

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. GE Aerospace's annualized Net Income for the quarter that ended in Dec. 2023 was $6,368 Mil. GE Aerospace's average total tangible assets for the quarter that ended in Dec. 2023 was $140,830 Mil. Therefore, GE Aerospace's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 4.52%.

The historical rank and industry rank for GE Aerospace's Return-on-Tangible-Asset or its related term are showing as below:

GE' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -8.44   Med: -0.52   Max: 6.4
Current: 6.4

During the past 13 years, GE Aerospace's highest Return-on-Tangible-Asset was 6.40%. The lowest was -8.44%. And the median was -0.52%.

GE's Return-on-Tangible-Asset is ranked better than
74.12% of 313 companies
in the Aerospace & Defense industry
Industry Median: 2.63 vs GE: 6.40

GE Aerospace Return-on-Tangible-Asset Historical Data

The historical data trend for GE Aerospace's Return-on-Tangible-Asset can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

GE Aerospace Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Asset
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.02 2.54 -3.30 0.20 6.04

GE Aerospace Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Return-on-Tangible-Asset Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.53 19.06 0.10 0.99 4.52

Competitive Comparison

For the Aerospace & Defense subindustry, GE Aerospace's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


GE Aerospace Return-on-Tangible-Asset Distribution

For the Aerospace & Defense industry and Industrials sector, GE Aerospace's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where GE Aerospace's Return-on-Tangible-Asset falls into.



GE Aerospace Return-on-Tangible-Asset Calculation

GE Aerospace's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=9481/( (169746+143965)/ 2 )
=9481/156855.5
=6.04 %

GE Aerospace's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=6368/( (137695+143965)/ 2 )
=6368/140830
=4.52 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2023) net income data.


GE Aerospace  (NYSE:GE) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


GE Aerospace Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of GE Aerospace's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.


GE Aerospace (NYSE:GE) Business Description

Address
5 Necco Street, Boston, MA, USA, 02210
GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, and onshore and offshore wind turbines. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by Danaher alumnus Larry Culp, who is leading a multiyear turnaround of the conglomerate based on lean principles.
Executives
Michael J Holston officer: Senior Vice President GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Rahul Ghai officer: Senior Vice President GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Scott Strazik officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Jessica R. Uhl director 200 WEST STREET, NEW YORK NY 10282
Thomas S Timko officer: Vice President 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Darren W Mcdew director 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
L Kevin Cox officer: Senior Vice President THE PEPSI BOTTLING GROUP, INC., ONE PEPSI WAY, SOMERS NY 10589
Russell Stokes officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Happe Carolina Dybeck officer: Senior Vice President 5 NECCO STREET, BOSTON MA 02210
John S. Slattery officer: Executive Vice President 5 NECCO STREET, BOSTON MA 02210
Thomas W Horton director 4333 AMON CARTER BLVD., FORTH WORTH TX 76155
Isabella D Goren director C/O LYONDELLBASELL INDUSTRIES N V, DELFTSEPLEIN 27E, ROTTERDAM P7 3013AA
Francisco Dsouza director 500 GLENPOINTE CENTRE W, TEANECK NJ 07666
Risa J Lavizzo-mourey director GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Paula Rosput Reynolds director 605 HILLSIDE DRIVE EAST, SEATTLE WA 98112

GE Aerospace (NYSE:GE) Headlines

From GuruFocus

Q3 2022 General Electric Co Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2021 General Electric Co Earnings Call Transcript

By GuruFocus Research 01-23-2024

General Electric Co Investor Day Transcript

By GuruFocus Research 01-23-2024

Q3 2021 General Electric Co Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2023 General Electric Co Earnings Call Transcript

By GuruFocus Research 01-23-2024

General Electric Co HealthCare Investor Day Transcript

By GuruFocus Research 01-23-2024