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GE Aerospace (LIM:GE) Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

GE Aerospace has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for GE Aerospace's Piotroski F-Score or its related term are showing as below:

LIM:GE' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of GE Aerospace was 8. The lowest was 3. And the median was 5.


GE Aerospace Piotroski F-Score Historical Data

The historical data trend for GE Aerospace's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 4.00 3.00 8.00 5.00

GE Aerospace Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score 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 8.00 8.00 8.00 7.00 5.00

Competitive Comparison

For the Aerospace & Defense subindustry, GE Aerospace's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Aerospace & Defense industry and Industrials sector, GE Aerospace's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where GE Aerospace's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 7506 + 35 + 348 + 1592 = $9,481 Mil.
Cash Flow from Operations was -259 + 474 + 1823 + 3141 = $5,179 Mil.
Revenue was 14485 + 16698 + 17346 + 19423 = $67,952 Mil.
Gross Profit was 3756 + 4336 + 4442 + 5027 = $17,561 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(188851 + 164472 + 163006 + 156662 + 163045) / 5 = $167207.2 Mil.
Total Assets at the begining of this year (Dec22) was $188,851 Mil.
Long-Term Debt & Capital Lease Obligation was $21,684 Mil.
Total Current Assets was $59,798 Mil.
Total Current Liabilities was $50,876 Mil.
Net Income was -1136 + -882 + 161 + 2196 = $339 Mil.

Revenue was 12674 + 14128 + 14471 + 16826 = $58,099 Mil.
Gross Profit was 2900 + 3603 + 2937 + 4387 = $13,827 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(198874 + 191961 + 185540 + 180877 + 188851) / 5 = $189220.6 Mil.
Total Assets at the begining of last year (Dec21) was $198,874 Mil.
Long-Term Debt & Capital Lease Obligation was $22,409 Mil.
Total Current Assets was $58,382 Mil.
Total Current Liabilities was $49,428 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

GE Aerospace's current Net Income (TTM) was 9,481. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

GE Aerospace's current Cash Flow from Operations (TTM) was 5,179. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=9481/188851
=0.0502036

ROA (Last Year)=Net Income/Total Assets (Dec21)
=339/198874
=0.0017046

GE Aerospace's return on assets of this year was 0.0502036. GE Aerospace's return on assets of last year was 0.0017046. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

GE Aerospace's current Net Income (TTM) was 9,481. GE Aerospace's current Cash Flow from Operations (TTM) was 5,179. ==> 5,179 <= 9,481 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=21684/167207.2
=0.12968341

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=22409/189220.6
=0.11842791

GE Aerospace's gearing of this year was 0.12968341. GE Aerospace's gearing of last year was 0.11842791. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=59798/50876
=1.17536756

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=58382/49428
=1.18115238

GE Aerospace's current ratio of this year was 1.17536756. GE Aerospace's current ratio of last year was 1.18115238. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

GE Aerospace's number of shares in issue this year was 1102. GE Aerospace's number of shares in issue last year was 1093. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=17561/67952
=0.25843242

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=13827/58099
=0.23799033

GE Aerospace's gross margin of this year was 0.25843242. GE Aerospace's gross margin of last year was 0.23799033. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=67952/188851
=0.35981806

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=58099/198874
=0.29213975

GE Aerospace's asset turnover of this year was 0.35981806. GE Aerospace's asset turnover of last year was 0.29213975. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+0+0+1+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

GE Aerospace has an F-score of 5 indicating the company's financial situation is typical for a stable company.

GE Aerospace  (LIM:GE) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


GE Aerospace Piotroski F-Score Related Terms

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GE Aerospace (LIM: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.