Financial Analysis of General Electric CO Essay Example | Topics and Well Written Essays - 750 words

Financial Analysis of General Electric CO - Essay ExampleGE is investing in cleaner technologies and cosmos recognized for the effort.GE Company is well managed. The data are mostly positive over the years. The company is showing development in all the areas. It is too low geared and showing positive growth in profitability, liquidity, efficiency measurements. The company seems to be in the maturity phase. Analysts are positive about the growth of the company. So, the company has not topped its potential as yet.Appendix1.Return on Investment (ROI) = Profit before taxes (PBIT) / Investment (total assets - current liabilities)2006 24,620 / (697,239 - 220,514) x one hundred 2005 22,696 / (673,321 - 204,970) x 1002. Gross Profit Ratio = (Gross Profit) / bring Revenues) x 1002006 (89,281 / 163, 391) x 100 2005 (81,142 / 147,956) x 1003. Return on uprightness (ROE) = Profit after taxes / Shareholders Equity x 1002006 (20,666 / 112,314) x 100 2005 (18,661 / 109,351) x 1004. Earnings per share (given)5. Working Capital = menstruation Assets - Current Liabilities 2006 (438,728 - 220,514) 2005 (378,269 - 204,970) 6. Current Ratio = Current Assets Current Liabilities2006 (438,728 / 220,514) 2005 (378,269 / 204,970) 7. Acid Test (or Quick) Ratio = Quick Assets Current Liabilities (Quick Assets = Current Assets - Equity) 2006 (390,902 / 220,514) 2005 (336,121 / 204,970)8. Total Asset Turnover = Revenue / Total Assets (fixed + current) (times)2006 (163,391 / 697,239) 2005 (147,956 / 673,321)9. Fixed Asset Turnover = Revenue / Fixed Assets (times)2006 (163,391 / 258,511) 2005 (147,956 / 295052)10. Cash Turnover Ratio = Total Revenues / Cash Balance s (times) (Cash Balances = Cash + Accounts Receivables)2006 (163,391 / 28,229) 2005 (147,956 / 23,676)11. Gearing dimension = Total Debt Capital / (Total Debt Capital + Equity ) x 100 2006 432,957 / (432,957 + 112,314)x100 2005 370,437 /