Revenue Analysis
Total and Operating Revenue: GE has seen fluctuations in its total revenue across the periods, with notable figures being $16.05 billion in Q1 2024, rising from $14.485 billion in Q1 2023. A spike to $19.423 billion in Q4 2023 suggests potential seasonal influences or exceptional gains.
Gross Profit Margins: The gross profit follows a similar trend, peaking at $5.027 billion in Q4 2023 from $3.756 billion in Q1 2023. This reflects how effectively GE manages its production costs relative to sales.
Cost Management
Cost of Revenue: The cost of revenue generally increased, aligning with revenue growth, from $10.729 billion in Q1 2023 to $11.62 billion in Q1 2024, though there were periods of higher costs like $14.396 billion in Q4 2023.
Operating Expense: GE’s operating expenses have varied, indicating adjustments in strategy or operational efficiency. The lowest was $3.257 billion in Q1 2023, increasing to $3.403 billion in Q1 2024.
Total Expenses: Total expenses peaked at $18.228 billion in Q4 2023, correlating with increased revenue and costs during this period.
Profitability Analysis
EBITDA: EBITDA showed robust growth, from $2.168 billion in Q2 2023 to a substantial $2.667 billion in Q1 2024.
Operating Income: Operating income fluctuated, indicating various challenges and efficiencies in operations, ranging from $499 million in Q1 2023 to $1.03 billion in Q1 2024.
Pretax Income: Pretax income has seen substantial growth, particularly from $1.39 billion in Q2 2023 to $1.866 billion in Q1 2024, highlighting improved profitability before tax impacts.
Net Income: Net income has been variable, with a particularly low value in Q2 2023 at $35 million, but recovery in subsequent quarters, signaling potential non-operating factors or irregular expenses impacting profitability.
Cash Flow Indicators
Reconciled Depreciation: Depreciation costs have been fairly stable, suggestive of consistent capital expenditure levels impacting cash flows.
Interest Expense: Interest expenses remained relatively stable, indicative of consistent debt levels or interest rates impacting financing costs.
Taxation
Tax Rate: The tax rate varied, with particularly low effective rates in some periods, impacting the net income after tax.
Tax Provision: The tax provision generally increased in line with pretax profits, suggesting adequate fiscal compliance.
Tax Effect of Unusual Items: The tax effect of unusual items denotes significant non-recurring events affecting fiscal calculations.
Shareholder Metrics
Diluted and Basic EPS: EPS figures were quite volatile, reflecting the direct impact of net income variations on shareholders.
Average Shares: Slight fluctuations in average shares outstanding indicate minor adjustments or share repurchases.
Net Income Available to Common Stockholders: This metric, illustrating the earnings directly available to shareholders, underscores the variability in GE’s profitability.
Conclusion
GE’s financial performance over the last three years highlights both opportunities and challenges. Revenue and gross profit growth are promising, though variability in net income and operational costs suggests areas for improvement in cost management and operational efficiency. Tax effects and interest expenses need careful management to sustain profitability. Strategic initiatives should focus on enhancing operational efficiency and maintaining stable financial management to overcome periodic adversities and maximize shareholder value.