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Company Information ACCT 370 Excel Project General Electric Co Multinational Conglomerate Asher Braatz Company Name General Electric Co Ticker Symbol GE Industry Conglomerate - Aviation, Healthcare,...

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Company Information
    ACCT 370 Excel Project
    General Electric Co
    Multinational Conglomerate
    Asher Braatz
    Company Name        General Electric Co
    Ticker Symbol        GE
    Industry        Conglomerate - Aviation, Healthcare, Power and Renewable Energy
    Products and Services Offered        Aircraft engineers, Electrical Distribution, Electric Motors, Energy, Finance, Software
    Major Competitors        Bentley Systems, 3M, Siemens, Philips, Honeywell, Mitsubishi
Historical Income Statement
    General Electric Co
    Historical Income Statements
    As on 2020, 2019 and 2018
    In Millions
        2020    2019    2018
    Sales of goods    $49,464.00    $58,949.00    60148
    Sales of services    23,558.00    28,538.00    28,792.00
    GE Capital revenues from services    6,597.00    7,728.00    8,072.00
    Total revenues    79,619.00    95,215.00    97,012.00
    Cost of goods sold    42,041.00    45,902.00    47,570.00
    Cost of services sold    18,380.00    21,009.00    21,833.00
    Selling, general and administrative expenses    12,621.00    13,949.00    14,643.00
    Research and development    2,565.00    3,118.00    3,415.00
    Interest and other financial charges    3,273.00    4,227.00    4,766.00
    Insurance losses and annuity benefits    2,397.00    3,294.00    2,790.00
    Goodwill impairments    1,717.00    1,486.00    22,136.00
    Non-operating benefit costs    2,433.00    2,844.00    2,753.00
    Other costs and expenses    382.00    458.00    414.00
    Total costs and expenses    85,809.00    96,287.00    120,320.00
    Other income    11,387.00    2,222.00    2,321.00
    Earnings (loss) from continuing operations before income taxes    5,197.00    1,150.00    (20,987.00)
    Benefit (provision) for income taxes    474.00    (726.00)    (93.00)
    Earnings (loss) from continuing operations    5,671.00    424.00    (21,080.00)
    Earnings (loss) from discontinued operations, net of taxes    (125.00)    (5,335.00)    (1,363.00)
    Net earnings (loss)    5,546.00    (4,911.00)    (22,443.00)
    Less net earnings (loss) attributable to noncontrolling interests    (158.00)    66.00    (89.00)
    Net earnings (loss) attributable to the Company    5,704.00    (4,977.00)    (22,354.00)
    Prefe
ed stock dividends    (474.00)    (460.00)    (447.00)
    Net earnings (loss) attributable to GE common shareholders    5,230.00    (5,437.00)    (22,801.00)
    Amounts attributable to GE common shareholders
    Earnings (loss) from continuing operations    5,672.00    423.00    (21,080.00)
    Less net earnings (loss) attributable to noncontrolling interests,
continuing operations    (158.00)    7.00    (90.00)
    Earnings (loss) from continuing operations attributable to the Company    5,830.00    416.00    (20,990.00)
    Prefe
ed stock dividends    (474.00)    (460.00)    (447.00)
    Earnings (loss) from continuing operations attributable to GE
common shareholders    5,356.00    (44.00)    (21,437.00)
    Earnings (loss) from discontinued operations, net of taxes    (126.00)    (5,335.00)    (1,363.00)
    Less net earnings (loss) attributable to noncontrolling interests,
discontinued operations    - 0    58.00    1.00
    Net earnings (loss) attributable to GE common shareholders    $5,230.00    ($5,437.00)    ($22,801.00)
    Fields Using Formulas
Historical Balance Sheet
    General Electric Co
    Historical Balance Sheets
    As on 2020, 2019 and 2018
    In Millions
    Assets    2020    2019    2018
    Cash, cash equivalents and restricted cash    $36,630.00    $35,811.00    $31,124.00
    Investment securities    7,319.00    9,888.00    33,508.00
    Cu
ent receivables    16,691.00    16,569.00    14,645.00
    Financing receivables – net    1,265.00    1,077.00    7,699.00
    Inventories, including defe
ed inventory costs     15,890.00    17,215.00    13,803.00
    Other GE Capital receivables    3,331.00    2,635.00    7,143.00
    Receivable from GE Capital    - 0    - 0    - 0
    Cu
ent contract assets     5,765.00    7,390.00    - 0
    All other cu
ent assets    1,521.00    3,362.00    - 0
    Assets of businesses held for sale    - 0    9,149.00    1,629.00
    Cu
ent assets    88,412.00    103,096.00    109,551.00
    Investment securities    42,549.00    38,632.00    - 0
    Financing receivables – net    1,771.00    2,057.00    - 0
    Other GE Capital receivables    4,661.00    4,509.00    - 0
    Property, plant and equipment – net    44,662.00    45,879.00    43,611.00
    Receivable from GE Capital    - 0    - 0
    Goodwill    25,524.00    26,734.00    33,974.00
    Other intangible assets – net    9,774.00    10,653.00    12,178.00
    Contract and other defe
ed assets    5,888.00    5,737.00    17,431.00
    All other assets    14,597.00    13,882.00    18,357.00
    Defe
ed income taxes    12,081.00    9,889.00    12,117.00
    Assets of discontinued operations    3,532.00    4,109.00    63,853.00
    Total assets    253,451.00    265,177.00    311,072.00
    Liabilities and Equity
    Short-term bo
owings    4,778.00    23,641.00    12,776.00
    Short-term bo
owings assumed by GE    - 0    - 0    - 0
    Accounts payable and equipment project accruals    16,476.00    17,357.00    13,826.00
    Progress collections and defe
ed income     18,215.00    18,389.00    18,983.00
    All other cu
ent liabilities    16,600.00    17,820.00    14,866.00
    Liabilities of businesses held for sale     - 0    1,658.00    708.00
    Cu
ent liabilities    56,069.00    78,865.00    61,159.00
    Defe
ed income    1,801.00    1,555.00    1,875.00
    Long-term bo
owings    70,288.00    67,242.00    88,949.00
    Long-term bo
owings assumed by GE     - 0    - 0    - 0
    Insurance liabilities and annuity benefits    42,191.00    39,826.00    35,562.00
    Non-cu
ent compensation and benefits    29,752.00    31,687.00    31,926.00
    All other liabilities    16,077.00    15,938.00    20,839.00
    Liabilities of discontinued operations    200.00    203.00    19,281.00
    Total liabilities    216,378.00    235,316.00    259,591.00
    Prefe
ed stock (5,939,875 shares outstanding at both
December 31, 2020 and December 31, 2019)    6.00    6.00    6.00
    Common stock (8,765,493,000 and 8,738,434,000 shares outstanding at December 31, 2020 and December 31, 2019, respectively)    702.00    702.00    702.00
    Accumulated other comprehensive income (loss) – net attributable
to GE    (9,749.00)    (11,732.00)    (14,414.00)
    Other capital    34,307.00    34,405.00    35,503.00
    Retained earnings    92,247.00    87,732.00    93,109.00
    Less common stock held in treasury    (81,961.00)    (82,797.00)    (83,925.00)
    Total GE shareholders’ equity    35,552.00    28,316.00    30,981.00
    Noncontrolling interests    1,521.00    1,545.00    20,500.00
    Total equity    37,073.00    29,861.00    51,481.00
    Total liabilities and equity    $253,451.00    $265,177.00    $311,072.00
    Fields Using Formulas
Historical Statement of Cash Fl
    General Electric Co
    Historical Statement of Cash Flows
    As on 2020, 2019 and 2018
    In Millions
        2020    2019    2018
    Net earnings (loss)    $5,546.00    ($4,912.00)    ($22,443.00)
    (Earnings) loss from discontinued operations    125.00    5,335.00    1,363.00
    Adjustments to reconcile net earnings (loss) to cash provided from
operating activities:
    Depreciation and amortization of property, plant and equipment    4,636.00    4,026.00    4,419.00
    Amortization of intangible assets    1,382.00    1,569.00    2,163.00
    Goodwill impairments    1,718.00    1,486.00    22,136.00
    (Gains) losses on purchases and sales of business interests    (12,526.00)    (53.00)    (1,522.00)
    (Gains) losses on equity securities     2,105.00    (693.00)    (166.00)
    Principal pension plans cost     3,559.00    3,878.00    4,226.00
    Principal pension plans employer contributions     (2,806.00)    (298.00)    (6,283.00)
    Other postretirement benefit plans (net)     (893.00)    (1,228.00)    (1,033.00)
    Provision (benefit) for income taxes     (474.00)    726.00    93.00
    Cash recovered (paid) during the year for income taxes     (1,441.00)    (1,950.00)    (1,404.00)
    Changes in operating working capital:
    Decrease (increase) in cu
ent receivables    (1,319.00)    (2,851.00)    (358.00)
    Decrease (increase) in inventories, including defe
ed inventory costs    1,105.00    (1,581.00)    (573.00)
    Decrease (increase) in cu
ent contract assets    1,631.00    891.00    751.00
    Increase (decrease) in accounts payable and equipment project accruals    (575.00)    2,674.00    666.00
    Increase (decrease) in progress collections and cu
ent defe
ed income    (216.00)    1,531.00    (563.00)
    All other operating activities    2,040.00    1,869.00    1,739.00
    Cash from (used for) operating activities – continuing operations    3,597.00    10,419.00    3,211.00
    Cash from (used for) operating activities – discontinued operations    - 0    (1,647.00)    1,767.00
    Cash from (used for) operating activities    3,597.00    8,772.00    4,978.00
    Additions to property, plant and equipment    (3,252.00)    (5,813.00)    (6,627.00)
    Dispositions of property, plant and equipment    1,644.00    3,718.00    4,093.00
    Additions to internal-use software    (151.00)    (282.00)    (320.00)
    Net decrease (increase) in GE Capital financing receivables    (20.00)    1,117.00    1,796.00
    Proceeds from sale of discontinued operations    - 0    5,864.00    29.00
    Proceeds from principal business dispositions    20,596.00    4,683.00    8,425.00
    Net cash from (payments for) principal businesses purchased    (85.00)    (68.00)    (1.00)
    Capital contribution from GE Industrial to GE Capital    - 0    - 0    - 0
    Sales of retained ownership interests    417.00    3,383.00    - 0
    Net (purchases) dispositions of GE Capital investment securities (Note 3)    (1,352.00)    (1,616.00)    2,534.00
    All other investing activities    (1,019.00)    (302.00)    8,996.00
    Cash from (used for) investing activities – continuing operations    16,778.00    10,684.00    18,925.00
    Cash from (used for) investing activities – discontinued operations    (136.00)    (1,745.00)    (645.00)
    Cash from (used for) investing activities    16,642.00    8,939.00    18,280.00
    Net increase (decrease) in bo
owings (maturities of 90 days or less)    (4,168.00)    280.00    (4,343.00)
    Newly issued debt (maturities longer than 90 days)    15,028.00    2,185.00    3,120.00
    Repayments and other reductions (maturities longer than 90 days)    (29,876.00)    (16,567.00)    (20,319.00)
    Capital contribution from GE Industrial to GE Capital    - 0    - 0    - 0
    Dividends paid to shareholders    (648.00)    (649.00)    (4,474.00)
    All other financing activities    (189.00)    (1,013.00)    (1,329.00)
    Cash from (used for) financing activities – continuing operations    (19,853.00)    (15,764.00)    (27,345.00)
    Cash from (used for) financing activities – discontinued operations    1.00    (369.00)    (4,461.00)
    Cash from (used for) financing activities    (19,852.00)    (16,133.00)    (31,806.00)
    Effect of cu
ency exchange rate changes on cash, cash equivalents
and restricted cash    144.00    (49.00)    (628.00)
    Increase (decrease) in cash, cash equivalents and restricted cash    531.00    1,529.00    (9,176.00)
    Cash, cash equivalents and restricted cash at beginning of year    37,077.00    35,548.00    44,724.00
    Cash, cash equivalents and restricted cash at end of year    37,608.00    37,077.00    35,548.00
    Less cash, cash equivalents and restricted cash of
discontinued operations at end of year    523.00    638.00    4,424.00
    Cash, cash equivalents and restricted cash of continuing operations at end of year    $37,085.00    $36,439.00    $31,124.00
    Fields Using Formulas
Phillips Histrocial Income Stat
    Philips Group
    Historical Income Statements
    As on 2020, 2019 and 2018
    In Millions
        2020    2019    2018
    Sales    $19,535.00    $19,482.00    $18,121.00
    Cost of sales    (10,754.00)    (10,607.00)    (9,568.00)
    Gross margin    8,781.00    8,875.00    8,553.00
    Selling expenses    (4,606.00)    (4,682.00)    (4,500.00)
    General and administrative expenses    (668.00)    (631.00)    (631.00)
    Research and development expenses    (1,915.00)    (1,884.00)    (1,759.00)
    Other business income    123.00    155.00    88.00
    Other business expenses    (173.00)    (188.00)    (33.00)
    Income from operations    1,542.00    1,645.00    1,718.00
    Financial income    160.00    117.00    51.00
    Financial expenses    (204.00)    (233.00)    (264.00)
    Investments in associates, net of income taxes    (9.00)    1.00    (2.00)
    Income before taxes    1,489.00    1,530.00    1,503.00
    Income tax expense    (284.00)    (337.00)    (193.00)
    Income from continuing operations    1,205.00    1,193.00    1,310.00
    Discontinued operations, net of income taxes    (10.00)    (19.00)    (213.00)
    Net income    $1,195.00    $1,174.00    $1,097.00
    Fields Using Formulas
Philips Historical Balance Shee
    Philips Group
    Historical Balance Sheets
    As on 2020, 2019 and 2018
    In Millions
    Assets    2020    2019    2018
    Non-cu
ent assets
    Property, plant and equipment    $2,682.00    $2,866.00    $1,712.00
    Goodwill    8,014.00    8,654.00    8,503.00
    Intangible assets excluding goodwill    2,997.00    3,466.00    3,589.00
    Non-cu
ent receivables    230.00    178.00    162.00
    Investments in associates    241.00    232.00    245.00
    Other non-cu
ent financial assets    430.00    248.00    360.00
    Non-cu
ent derivative financial assets    6.00    1.00    1.00
    Defe
ed tax assets    1,820.00    1,865.00    1,828.00
    Other non-cu
ent assets    66.00    47.00    47.00
    Total non-cu
ent assets    16,486.00    17,557.00    16,447.00
    Cu
ent assets
    Inventories    2,993.00    2,773.00    2,674.00
    Other cu
ent financial assets    -    1.00    436.00
    Other cu
ent assets    424.00    476.00    469.00
    Cu
ent derivative financial assets    105.00    38.00    36.00
    Income tax receivable    150.00    177.00    147.00
    Cu
ent receivables    4,156.00    4,554.00    4,035.00
    Assets classified as held for sale    173.00    15.00    87.00
    Cash and cash equivalents    3,226.00    1,425.00    1,688.00
    Total cu
ent assets    11,227.00    9,459.00    9,572.00
    Total assets    27,713.00    27,016.00    26,019.00
    Equity
    Common shares    182.00    179.00    185.00
    Reserves    (340.00)    652.00    548.00
    Other    12,028.00    11,766.00    11,355.00
    Equity    11,870.00    12,597.00    12,088.00
    Non-controlling interests    31.00    28.00    29.00
    Group equity    11,901.00    12,625.00    12,117.00
    Non-cu
ent liabilities
    Long-term debt    5,705.00    4,939.00    3,427.00
    Non-cu
ent derivative financial liabilities    86.00    124.00    114.00
    Long-term
Answered Same Day Dec 17, 2021

Solution

Nitish Lath answered on Dec 18 2021
113 Votes
Financial Analysis Presentation
Financial Analysis Presentation
Asher Braatz
ACCT 370
Mrs. Geilse
Introduction
General Electric Company
Ticker symbol is (GE)
Aviation, Healthcare, Power and Renewable Energy, These are all the industries they encompass.
The products they sell are - Aircraft engineers, Electrical Distribution, Electric Motors, Energy, Finance, Software. Which is also very complex.
Competitors - 3M, Honeywell, Bentley, Phillips.
Cash Flow
Operating- 2018- 4,978,00/ 2019- 8,772.00/ 2020- 3,597.00
Investing- 2018- 18,280.00/ 2019- 8,939.00/ 2020- 16,642.00
Financing- 2018- 31,806.00/ 2019- 16,133.00/ 2020- 19,852.00
Positive operational cash flows in all years which is a positive indicator.
Cash Flow Contd…
Principal business disposition in all three years and lesser investment in PPE
Increased repayment of debt obligations which has strengthened debt equity proportion (GE, 2021)
Repayment of financing obligations majorly from sale of capital investments which shows the higher disposition of business rather than expansion
Ratio Analysis
Increase in liquidity position over past three years i.e. increase in cu
ent ratio from 1.31 times to 1.58 times
Higher liquid assets to settle cu
ent obligations i.e. higher quick ratio as compared to its competitors v/s industry average – 1.29 v/s 1.06 v/s 1.25 times (GE, 2021)
Higher leverage ratio due to higher proportion of debt – not...
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