GE Aerospace (HAM:GCP) ROCE % : 7.63% (As of Mar. 2024)

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What is GE Aerospace ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. GE Aerospace's annualized ROCE % for the quarter that ended in Mar. 2024 was 7.63%.

GE Aerospace ROCE % Historical Data

The historical data trend for GE Aerospace's ROCE % 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.

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GE Aerospace ROCE % Chart

GE Aerospace Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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1.34

4.68

-2.34

0.49

8.85

GE Aerospace Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															21.03	5.70	2.11	8.27	7.63

GE Aerospace ROCE % Calculation

GE Aerospace's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	10370.353	/	( ( (178275.344 - 46660.032)	+	(149512.265 - 46653.292) )	/ 2 )
	=	10370.353	/	( (131615.312	+	102858.973)	/ 2 )
	=	10370.353	/	117237.1425
	=	8.85 %

GE Aerospace's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	7889.92	/	( ( (149512.265 - 46653.292)	+	(150826.64 - 46999.12) )	/ 2 )
	=	7889.92	/	( ( 102858.973	+	103827.52 )	/ 2 )
	=	7889.92	/	103343.2465
	=	7.63 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

GE Aerospace (HAM:GCP) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

GE Aerospace ROCE % Related Terms

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GE Aerospace (HAM:GCP) Business Description

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