General Electric Co (NYSE:GE) Return-on-Tangible-Equity

: 1.15% (As of Jun. 2023)

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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. General Electric Co's annualized net income for the quarter that ended in Jun. 2023 was $140 Mil. General Electric Co's average shareholder tangible equity for the quarter that ended in Jun. 2023 was $12,225 Mil. Therefore, General Electric Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2023 was 1.15%.

The historical rank and industry rank for General Electric Co's Return-on-Tangible-Equity or its related term are showing as below:

GE' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -250.58 Med: 18.04 Max: 384.42
Current: 179.31

During the past 13 years, General Electric Co's highest Return-on-Tangible-Equity was 384.42%. The lowest was -250.58%. And the median was 18.04%.

GE's Return-on-Tangible-Equity is ranked better than
96.45% of 2843 companies
in the Industrial Products industry
Industry Median: 8.03 vs GE: 179.31

General Electric Co Return-on-Tangible-Equity Historical Data

The historical data trend for General Electric Co's Return-on-Tangible-Equity 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.

General Electric Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Return-on-Tangible-Equity

Negative Tangible Equity

-250.58

5.73

General Electric Co Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Return-on-Tangible-Equity																-128.27	-	1,201.08	385.91	1.15

Competitive Comparison

For the Specialty Industrial Machinery subindustry, General Electric Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.

Annual Data Quarterly Data

General Electric Co Return-on-Tangible-Equity Distribution

For the Industrial Products industry and Industrials sector, General Electric Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where General Electric Co's Return-on-Tangible-Equity falls in comparison to its industry or sector. The grey bar indicates the Return-on-Tangible-Equity's extreme value range as defined by GuruFocus.

General Electric Co Return-on-Tangible-Equity Calculation

General Electric Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2022 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	225	/	( (4846	+	3005 )	/ 2 )
	=	225	/	3925.5
	=	5.73 %

General Electric Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2023 is calculated as

Return-on-Tangible-Equity	=	Net Income	/	( (Total Tangible Equity	+	Total Tangible Equity)	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	Net Income	/	( (Total Stockholders Equity - Intangible Assets	+	Total Stockholders Equity - Intangible Assets)	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	140	/	( (12555	+	11895)	/ 2 )
	=	140	/	12225
	=	1.15 %

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

General Electric Co (NYSE:GE) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.

Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.

General Electric Co Return-on-Tangible-Equity Related Terms

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

General Electric Co (NYSE:GE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » General Electric Co (NYSE:GE) » Definitions » Return-on-Tangible-Equity

Comparable Companies

Traded in Other Exchanges

GE:Peru GE:Mexico GEC:UK GNE:France GCP:Germany GE:Germany GCP:Germany GCP:Germany GE:Chile GE:Switzerland GEOO34:Brazil GE:Argentina

Address

5 Necco Street, Boston, MA, USA, 02210

Website

https://www.ge.com

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 former Danaher alumnus Larry Culp, who is leading a multiyear turnaround of the storied conglomerate based on lean principles.

Executives

Rahul Ghai	officer: Senior Vice President	GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Jessica R. Uhl	director	200 WEST STREET, NEW YORK NY 10282
Darren W Mcdew	director	100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Thomas S Timko	officer: Vice President	300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
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
Scott Strazik	officer: Senior Vice President	ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Michael J Holston	officer: Senior Vice President	GENERAL ELECTRIC COMPANY, 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