General Electric 14General ElectricFinanc.docx

General Electric 14
General Electric
Financial Analysis
Nicole Henry
EXECUTIVE SUMMARY
General Electric has been in business for over a century now
and the inception of the dynamo has been the key to one of the
largest global names. The company has been able to financially
provide for the electrical and then today in the financial sector
as well. This is reflected in the financial position of the
company which has performed in the double digits during tough
times. When analyzing the financial position of the company, it
is evident that the performance that the company had been
gaining for over a period has now started seeing a settlement
impact. This means that the growth perspective that the
company was seeing over the last couple of years have now
subsided. The impact of growth is visible in the current year
where the company’s financial position took a dip. Although the
dip is the settlement of the exceeding performance; and has a
subsided impact from the financial crunch in the previous
decade around the globe.

ANALYSIS OVERVIEW
In order to analyze a company which has its operations in
different business factions there are certain questions that need
to be raised. The first question is that with such a gigantic
business across the globe, is it feasible to break the financial
analysis on a business wise or is the company feasible to be
analyzed in a single entity perspective. The perspective reveals
that the company analyzes its performance as a single entity and
hence all the stakeholders are considered under a single arena.
Thence, the review has to be taken in the single entity
perspective. Along with this, there is a portion of performance
review which is to set the trends for the future. The perspective
cannot be taken as the downward trend, but this has to be taken
as a moving average of the recent years. The financial analysis
will reveal what factions of the company underperformed and
led to a decrease in the financial position. The financial ratios
used in the study reveal the position and performance of the
company in the perspective of how each pillar has performed.
This ratio analysis will also be an intricate combination of the
businesses of the company to augment each pillar.
ASSUMPTIONS
The basis for carrying out the financial analysis for the
company involves the changing trends of the company and the
industry itself. Although the company’s financial positions
appear to present strong performance, the underlying belief is
that the company is now in a position where the product and
service demand is increasing. Connecting the dots, the company
is carrying out the sales with controlled receivables. The
assumption set here is that the company’s growth in sales trends
for products and services is not driven through increasing credit
exposure. Along with this, there is an increased trend for cost
hikes. This is assumed to be driven from the pricing positions in
the market and the underlying costs required to be fared in order
to promote the product against competition.

FINANCIAL RATIO ANALYSIS
Company financial performance is often integrated by
stakeholders in the bottom line. This requires that the company
indicates strong performance in the financial perspective
keeping the costs in controls and setting the strategic direction
to increase revenues. However, for stakeholder management it is
integral that the actual performance is reported instead of
inflated performance. This ensures that the real picture is
communicated to ensure that the investment decision by the
stakeholders is in the right direction. The base analysis on
which the ratio integration is being done is based on the fact
that the potential within General Electric using the current base
is huge.
Gross Profit Margin
The basic dimension where an investor eyes the company is this
ratio. This is primarily the actual scenario which depicts how
well the company’s product is moving in the market. The real
picture is covered from the company’s cost of goods sold and
the revenues generated from the base (Drake, Fabozzi, 2010).
The financial figures reveal that for GE the performance during
the last decade is now taking a set down where the company was
able to generate over 50% in its gross profits. However, the
company has taken a dip primarily because the costs of products
over the period have increased substantially impacting the
actual position of the profitability of the company. The evident
change in the company’s sales is visible from the drift in the
change in sales of financial assets which have slowed down over
the period. This decrease in the sales of financial assets and
other income from subsidiary portions has impacted the
decrease in profitability position of the company.

Net Profit Margin
For any organization the bottom line is the key to the future
successes. The net income ratio indicates how well the efforts
and strategy of the company is working to be able to charge a
premium from the market. The stronger the position of the
company, the greater is the management and stakeholders in the
position to take risks. Without the company showing stability
and growth in the profitability, the future risks will have to be
hedged. The growths in the net profit ratio of the company from
below 8% to well over 125 basis points indicate that the
company is seeking growth with controlled risk factions taken.
This means that the company will be able to take greater risks
in the current position. This is primarily because the company
has been able to control the cost factions of the company and
has diverted more of the efforts towards investing into getting
the goods and services to the markets.
Operating Profit Margin
The operating profits define how well the company is able to
utilize the operational activities within the company to translate
the product into sales. With products and services both
integrated into one line of business, it is evident that the
challenge will continue to persist in developing operating
profits (Lundholm, Sloan, 2012). This is primarily because the
profitability driven in the services sector is based on the square
units of space being occupied while the product sales remain the
key parameter for the businesses in product lines. However,
when analyzing General Electric, it is visible that the
company’s operating margins continued to flourish. Although in
double digit growth, the operating margins have also seen a set
off in the current period.

Return on Equity (ROE)
Investment into a company done by a stakeholder is only on the
premise that the client expects to generate an anticipated rate or
return or probably higher. These expectations set forth by the
investor sets the drive and the target for the company. This
belief by the investor has to translate into how the company
drives the strategy. This has to be set forth in a manner that the
company exceeds the budget settings of the stakeholders. For a
company with such global presence and strong product lines, the
achievement to the stakeholder expectations is important. This
has been visible in the last three years where the company has
been able to increase the return to its investors into the double
digit numbers. However, this grilling of performance is visible
where the company grew to over 12% of return on its invested
equity which has taken off a settling in the current period to just
over the 11% mark.
Return on Assets (Du Pont Ratio)
The invested capital in a company is utilized into developing
assets for the company. These asset build ups are the key
parameters which build up to the future revenue generation.
These assets have to be the levers which will grow the
organization in terms of revenue and the expectations set forth
by the stakeholders. When we review the volumetric figures of
the company, the performance of just around 2% return on
assets would appear to be substantially low. However, the
industry average has been substantially low. Comparing to the
overall industry is not feasible primarily because of the
diversified business portfolio that the company maintains. This

holds high that the company has been able to raise the bar for
performance of the company’s assets. Concurrently, the
company will have to increase the revenue per product and sales
to ensure that the Du Pont ratio goes up.
Current Ratio
Liquidity is a key parameter which is a point of concern for
large organization. In general situations, it is the key parameter
that the company is evaluated on. When the analysis is done, the
figures for performance of profitability may appear to be
exciting for stakeholders; however, the actual performance may
appear to be weak due to reduced liquidity. The consideration
for growth requires that the company may move forward to
continue credit sales. This will mean that the liquidity for the
company may become a pressing issue and reduce the actual
position of the company (Bodie, Kane, Marcus, 2011). When
evaluating the position of General Electric, the liquidity
position was considered to be weak during the flowing period;
however, over the period the company has been able to raise the
bar to over 1. This means that with the current assets in hand
the company will be able to pay off the current debts that the
company holds.
Inventory Turnover Ratio
For any organization, it is necessary that the company moves its
assets continuously. Without the assets inventory in a stagnant
position, the worry for the company will increase. This is
because the assets of the company would be in a stagnant
position and the product would have become stale. The company
cannot carry stale products on its assets line because this would

show an inflated asset book which would actually not reap any
returns. Slow moving inventory indicates that the company will
have to review the product line within the market and address
the needs of the market urgently. Without the right kind of
review, the organization will not be able to identify and
strategize the products concurrently. Often there is a situation
pressed with the company where the product is well ahead of
the time to market. Keeping this situation, the organization may
not be able to generate sales and will have to let go of the
innovation used. However, in a situation where the organization
is in a product and service industry, it has to ensure that the
product sales do compliment the services that the company
offers and vice versa. Specifically in a financial assets market,
the products have tended to move slowly since the changing
economic times after the slump. This has led to the fact that the
sales of newer products in the markets are being taken with care
and immediate investment drive from the market is not
happening. When we evaluate General Electric’s position in the
company’s inventory turnover has coherently slowed down over
the period. The profitability of the company has continued to
grow but the amount of sales undertaken and the time taken for
the product to reach out of the inventory status into the market
has substantially increased. From just above 58 days, the
organization is now facing a challenge where the time period
has gone over 75 days. This has been a result of the slow
growth in the financial product sales. Increasing the sales of the
financial products will not be the only key factor but also
include that the company creates market acceptability for the
product.
Assets Turnover
The turnover of assets indicates how well the company is able
to turn the assets of the company into sales. Indicative of the

fact, this movement and ratio indicates how well the company
has strategized its direction. When we evaluate the company’s
turnover of assets it is visible that the company has been able to
translate its assets into a greater revenue generating position.
Although this looks in contrary to the inventory turnover of the
company, but the usage of assets build up of the company
represent a better figure with a growth from around 20% in
2010 the company has been able to raise the bar to above
21.5%.
Debt Ratio
Companies have different strategies of financing their
operations. Generally all the investments are not directed from a
single source of funding. The ratio of debt indicates that the
amount of leverage an organization has taken in order to build
up the assets. It is important to understand and continually
monitor the level of debt that the company maintains. This is
because with low liquidity and unplanned debt the company
may not be able to translate its sales efforts into coherent
success stories. When evaluating the company’s debt levels it is
integral that the risk exposure and the interest costs are
evaluated. For General Electric having such a massive product
portfolio and a global presence it may not be visibly difficult
for the organization to manage the debts and interest levels. The
company has already reduced the debt levels which hovered
around the 83% mark has reduced substantially to around the
81% mark.
COMMON SIZE FINANCIAL STATEMENTS
When evaluating the financial statements it is necessary that the

component evaluation is done for each statement. This
component split allows the contribution factor to be evaluated
and to understand how well the company is able to translate the
components into performance. The income statement of the
company is evaluated the common size that the product sales
and sales from GECS comprise the major portion of the
revenues. And in order to be able to cover these product sales,
the costs of goods sold comprise the major costs of the
company. This costs have been going up for the company in the
last couple of periods and the company will have to ensure that
the product sales reach economies of scale.
Along with this, the financial reviews of the company’s books
reveal that the company has a major portion of the assets
comprise of the financial receivables. This means that the
company will have to ensure that the receivables turnover
reduces and does not translate into bad debts and assets. Along
with this, the company’s liabilities comprise of the long term
receivables and hence the company will have to turn the assets
to incorporate its payment structure.
TREND ANALYSIS
When analyzing General Electric’s trend it is visible that the
company’s sales growth has primarily been driven from the
sales of products which have averaged just above the 9% mark.
However, in comparison to the product sales, the company’s
sales of services have taken a dip. This has been driven from the
increased competition in the market and the brand perception
that the company has in the market. More importantly, an
important component of the financial statement is the interest
expense. This indicates the level of financial leverage that the
company is in. A decline in this indicator highlights that the
company is taking a less risk based route with paying off the
outstanding debts. The company’s double digit growth in
income from 2010 has been offset in 2011. This has been a

correcting figure that the company has fared. With visible
growth in the product sales, the company has increased its
inventory balance and has managed its receivables exposure to a
controlled level and decreased it substantially. The performance
of the product is visible from the increased goodwill for the
company which is a qualitative figure and is increasing. A
decline in this figure in the concurrent year is not a decline in
the market value but readjustments to the changing dynamics of
the market. The liability side of the balance sheet indicates that
the company ventured off with the businesses for sale and
selling them off has increased the company’s bank deposits
meanwhile reduced assets of property.
INFERENCES AND CONCLUSION
Trend analysis and the ratio analysis indicate that with respect
to competition, the company is in good shape in the market.
However, the spike that the company has assumed in 2011 has
taken off a settle in 2012. This is primarily because of the
increased market penetration by the company. However, the
company’s financial assets continue to grow; the earnings have
taken a down tone where the cost of business has been
increasing. The company’s strategic understanding of the
market appears to be clear and appears to be in line with the
quantitative market analysis which is indicated by the inventory
management done by the company. In order to continue to
flourish and increase the added advantage from the business
operandi, the current income portions are being used to pay off
short term debts with long term exposures of risk being used to
build revenue generating assets.
REFERENCES
Drake, P. P., & Fabozzi, F. J. (2010). Financial ratio analysis.
Handbook of Finance.
Lundholm, R., & Sloan, R. (2012). Equity Valuation and

Analysis w/eVal. New York: McGraw-Hill/Irwin.
Bodie, Z., Kane, A., & Marcus, A. J. (2011). Investments and
portfolio management. McGraw-Hill/Irwin.
APPENDIX
BALANCE SHEET
Period Ending
2012
2011
Assets
Cash And Cash Equivalents
-8.46%
7.02%
Investment Securities
2.40%
7.82%
Current Receivables
4.99%
9.97%
Inventory
11.47%
19.66%
Net Financial Receivables
-7.82%
-9.72%
Other GECS Receivables
5.29%
-15.53%
Net Property, Plant & Equipment
6.09%

-0.72%
Investment in GECC
-
-
Goodwill
1.13%
12.64%
Other intangible assets - net
-0.67%
21.01%
All other assets
-10.41%
15.94%
Asset of Businesses held for sale
-70.32%
-98.07%
Assets of Discontinued Operations
-34.05%
-67.39%
Total Assets
-4.58%
-4.40%
Liabilities
Short Term Borrowings
-26.32%
16.66%
Accounts Payable, Principally Trade Accounts
-4.42%
11.89%
Progress Collections and Price Adjustments accrued
-4.16%

1.86%
Dividends Payable
10.18%
14.97%
Other GE Current Liabilities
0.67%
29.84%
Non-recourse borrowings of consolidated securitization entities
2.96%
-2.67%
Bank Deposits
7.76%
15.60%
Long Term Borrowings
-3.03%
-17.00%
Investment contracts, insurance liabilities and insurance annuity
benefits
-5.06%
0.65%
All other Liabilities
-2.80%
20.07%
Deferred Income Taxes
-42.75%
-104.61%
Liabilities of businesses held for sale
-54.49%
-97.85%
Liabilities of discontinued operations
43.95%
-29.39%
Total Liabilities
-7.20%
-4.30%

Stockholders' Equity
GECC Preferred Stocks
-
-
Common Stock
0.00%
0.00%
Investment securities
-2356.67%
-95.28%
Currency translation adjustments
209.77%
-254.65%
Cash flow hedges
-38.61%
-8.13%
Benefit plans
-10.06%
44.46%
Other Capital
-1.85%
-8.67%
Retained Earnings
4.55%
5.07%
Less Common Stock held in treasury
8.82%
-0.53%
Total Stockholder Equity
5.66%
-2.10%
Noncontrolling interests

220.99%
-67.77%
Total Liabilities & Equity
-4.58%
-4.40%
INCOME STATEMENT
Period Ending
2012
2011
REVENUES
Sales of Goods
9.15%
9.97%
Sales of Services
-1.77%
-30.23%
Other Income
-49.39%
339.97%
GECS earnings from continuing operations
-
-
GECS revenues from services
-6.40%
-1.90%
Total Revenue
0.05%
-1.95%

Cost & Expenses
Cost of Goods Sold
10.36%
11.85%
Cost of Services Sold
4.17%
-34.56%
Interests and other Financial Charges
-13.90%
-9.10%
Investment contracts, insurance losses and insurance annuity
benefits
-1.89%
-3.32%
Provision for losses on financing receivables
-1.52%
-45.06%
Other costs and expenses
-2.61%
-1.95%
Total Costs & Expenses
2.30%
-6.60%
EARNINGS (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
-14.07%
42.57%
Benefit (provision) for income taxes
-56.36%
446.48%

EARNINGS FROM CONTINUING OPERATIONS
2.64%
10.34%
Earnings (loss) from discontinued operations, net of taxes
1265.79%
-92.24%
Net Earnings
-4.01%
18.59%
Less net earnings attributable to noncontrolling interests
-23.63%
-45.42%
NET EARNINGS ATTRIBUTABLE TO THE COMPANY
-3.60%
21.53%
Preferred stock dividends declared
-100.00%
243.67%
NET EARNINGS ATTRIBUTABLE TO GE COMMON
SHAREOWNERS
3.97%
15.66%
201220112010
Gross Margin Ratio49.57%53.64%52.26%

Sheet1Period Ending31-Dec-1231-Dec-1131-Dec-1031-Dec-
1231-Dec-1131-Dec-1031-Dec-1331-Dec-1431-Dec-
1520122011REVENUESSales of
Goods72,99166,87560,81250%45%40%69,93870,54870,6099.15
%9.97%Sales of
Services27,15827,64839,62518%19%26%28,55228,04328,107-
1.77%-30.23%Other
Income2,5635,0641,1512%3%1%3,1723,1793,115-
49.39%339.97%GECS earnings from continuing operations- 0-
0- 00%0%0%- 0- 0- 0- 0- 0GECS revenues from
services44,64747,70148,62330%32%32%45,96145,74145,697-
6.40%-1.90% Total Revenue
147,359147,288150,211100%100%100%147,623147,510147,52
90.05%-1.95%Cost & ExpensesCost of Goods
Sold56,78551,45546,00539%35%31%54,10854,64654,69810.36
%11.85%Cost of Services
Sold17,52516,82325,70812%11%17%18,13317,81917,8844.17%
-34.56%Interests and other Financial
Charges12,50814,52815,9838%10%11%13,46213,28213,259-
13.90%-9.10%Investment contracts, insurance losses and
insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881-1.89%-
3.32%Provision for losses on financing
receivables3,8913,9517,1913%3%5%4,2394,1064,124-1.52%-
45.06%Other costs and
expenses36,38737,36238,10425%25%25%36,85136,76336,752-
2.61%-1.95%Total Costs &
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
129,498129,5982.30%-6.60%EARNINGS (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
7,930-14.07%42.57%Benefit (provision) for income
taxes(2,504)(5,738)(1,050)-2%-4%-1%(3,329)(3,322)(3,242)-
56.36%446.48%EARNINGS FROM CONTINUING
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
,69014,6882.64%10.34%Earnings (loss) from discontinued

operations, net of taxes(1,038)(76)(979)-1%-0%-
1%(743)(765)(786)1265.79%-92.24%Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
902-4.01%18.59%Less net earnings attributable to
noncontrolling interests2232925350%0%0%275261261-23.63%-
45.42%NET EARNINGS ATTRIBUTABLE TO THE
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
13,641-3.60%21.53%Preferred stock dividends declared-
0(1,031)(300)0%-1%-0%(339)(307)(286)-100.00%243.67%NET
EARNINGS ATTRIBUTABLE TO GE COMMON
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,3553.97%15.66%
1231-Dec-1131-Dec-1020122011AssetsCash And Cash
Equivalents77,35684,50178,95811%12%11%-
8.46%7.02%Investment
Securities48,51047,37443,9387%7%6%2.40%7.82%Current
Recievables21,50020,47818,6213%3%2%4.99%9.97%Inventory
15,37413,79211,5262%2%2%11.47%19.66%Net Financial
Recievables258,028279,918310,05538%39%41%-7.82%-
9.72%Other GECS Recievables7,9617,5618,9511%1%1%5.29%-
15.53%Net Property, Plant &
Equipment69,74365,73966,21410%9%9%6.09%-
0.72%Investment in GECC- 0- 0- 00%0%0%- 0-
0Goodwill73,44772,62564,47311%10%9%1.13%12.64%Other
intangible assets - net11,98712,0689,9732%2%1%-
0.67%21.01%All other
assets100,076111,70196,34215%16%13%-10.41%15.94%Asset
of Businesses held for sale21171136,8870%0%5%-70.32%-
98.07%Assets of Discontinued
Operations1,1351,7215,2780%0%1%-34.05%-67.39% Total
Assets 685,328718,189751,216100.00%100.00%100.00%-
4.58%-4.40%LiabilitiesShort Term
Borrowings101,392137,611117,95918%23%19%-
26.32%16.66%Accounts Payable, Principally Trade
Accounts15,67516,40014,6573%3%2%-4.42%11.89%Progress

Collections and Price Adjustments
accrued10,87711,34911,1422%2%2%-4.16%1.86%Dividends
Payable1,9801,7971,5630%0%0%10.18%14.97%Other GE
Current
Liabilities14,89514,79611,3963%2%2%0.67%29.84%Non-
recourse borrowings of consolidated securitization
entities30,12329,25830,0605%5%5%2.96%-2.67%Bank
Deposits46,46143,11537,2988%7%6%7.76%15.60%Long Term
Borrowings236,084243,459293,32342%41%47%-3.03%-
17.00%Investment contracts, insurance liabilities and insurance
annuity benefits28,26829,77429,5825%5%5%-5.06%0.65%All
other Liabilities68,67670,65358,84412%12%9%-
2.80%20.07%Deferred Income Taxes(75)(131)2,840-0%-0%0%-
42.75%-104.61%Liabilities of businesses held for
sale15734516,0470%0%3%-54.49%-97.85%Liabilities of
discontinued operations2,3451,6292,3070%0%0%43.95%-
29.39% Total Liabilities
556,858600,055627,018100%100%100%-7.20%-
4.30%Stockholders' EquityGECC Preferred Stocks- 0- 0-
00%0%0%- 0- 0Common
Stock7027027021%1%1%0.00%0.00%Investment
securities677(30)(636)1%-0%-1%-2356.67%-95.28%Currency
translation adjustments412133(86)0%0%-0%209.77%-
254.65%Cash flow hedges(722)(1,176)(1,280)-1%-1%-1%-
38.61%-8.13%Benefit plans(20,597)(22,901)(15,853)-17%-20%-
13%-10.06%44.46%Other
Capital33,07033,69336,89027%29%31%-1.85%-8.67%Retained
Earnings144,055137,786131,137117%118%110%4.55%5.07%Le
ss Common Stock held in treasury(34,571)(31,769)(31,938)-
28%-27%-27%8.82%-0.53% Total Stockholder Equity
123,026116,438118,936100%100%100%5.66%-
2.10%Noncontrolling
interests5,4441,69652621%0%1%220.99%-67.77%Total
Liabilities & Equity685,328718,189751,216100%100%100%-
4.58%-4.40%
Sheet3201220112010Gross Margin

Ratio49.57%53.64%52.26%ProfitabilityOperating Margin
Ratio11.81%13.75%9.46%ProfitabilityProfit
Margin9.26%9.61%7.75%ProfitabilityROE11.09%12.15%9.79%
AU & EffiROA1.99%1.97%1.55%AU & EffiCurrent
Ratio1.120.910.98LiquidityQuick
Ratio1.020.840.90LiquidityCash
Ratio0.870.720.78LiquidityDebt
Ratio0.810.840.83SolvencyDSO Ratio72.9769.4867.00AU &
EffiReturn on Invested Capital11.09%12.15%9.79%RICDebt to
Equity Ratio4.535.155.27SolvencyInterest Coverage
Ratio2.392.391.89SolvencyEPS1.351.241.18Financial
MktPayout Ratio2.08%2.27%2.38%Financial MktDividend
Cover47.9744.0641.93Financial Mkt
201220112010
Profit Margin9.26%9.61%7.75%
Goods72,99166,87560,81250%45%40%69,93870,54870,6099.15
%9.97%Sales of
Services27,15827,64839,62518%19%26%28,55228,04328,107-
1.77%-30.23%Other
Income2,5635,0641,1512%3%1%3,1723,1793,115-
services44,64747,70148,62330%32%32%45,96145,74145,697-
147,359147,288150,211100%100%100%147,623147,510147,52
Sold56,78551,45546,00539%35%31%54,10854,64654,69810.36
Sold17,52516,82325,70812%11%17%18,13317,81917,8844.17%
Charges12,50814,52815,9838%10%11%13,46213,28213,259-
insurance annuity

benefits2,8572,9123,0122%2%2%2,8892,8822,881-1.89%-
receivables3,8913,9517,1913%3%5%4,2394,1064,124-1.52%-
expenses36,38737,36238,10425%25%25%36,85136,76336,752-
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
taxes(2,504)(5,738)(1,050)-2%-4%-1%(3,329)(3,322)(3,242)-
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
1%(743)(765)(786)1265.79%-92.24%Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
0(1,031)(300)0%-1%-0%(339)(307)(286)-100.00%243.67%NET
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,3553.97%15.66%
Equivalents77,35684,50178,95811%12%11%-
15,37413,79211,5262%2%2%11.47%19.66%Net Financial
Recievables258,028279,918310,05538%39%41%-7.82%-

Equipment69,74365,73966,21410%9%9%6.09%-
0Goodwill73,44772,62564,47311%10%9%1.13%12.64%Other
assets100,076111,70196,34215%16%13%-10.41%15.94%Asset
Assets 685,328718,189751,216100.00%100.00%100.00%-
Borrowings101,392137,611117,95918%23%19%-
Payable1,9801,7971,5630%0%0%10.18%14.97%Other GE
Current
Liabilities14,89514,79611,3963%2%2%0.67%29.84%Non-
entities30,12329,25830,0605%5%5%2.96%-2.67%Bank
Borrowings236,084243,459293,32342%41%47%-3.03%-
556,858600,055627,018100%100%100%-7.20%-
00%0%0%- 0- 0Common

254.65%Cash flow hedges(722)(1,176)(1,280)-1%-1%-1%-
38.61%-8.13%Benefit plans(20,597)(22,901)(15,853)-17%-20%-
13%-10.06%44.46%Other
Earnings144,055137,786131,137117%118%110%4.55%5.07%Le
123,026116,438118,936100%100%100%5.66%-
2.10%Noncontrolling
interests5,4441,69652621%0%1%220.99%-67.77%Total
4.58%-4.40%
201220112010
Operating Margin Ratio11.81%13.75%9.46%
Goods72,99166,87560,81250%45%40%69,93870,54870,6099.15
%9.97%Sales of
Services27,15827,64839,62518%19%26%28,55228,04328,107-

1.77%-30.23%Other
Income2,5635,0641,1512%3%1%3,1723,1793,115-
services44,64747,70148,62330%32%32%45,96145,74145,697-
147,359147,288150,211100%100%100%147,623147,510147,52
Sold56,78551,45546,00539%35%31%54,10854,64654,69810.36
Sold17,52516,82325,70812%11%17%18,13317,81917,8844.17%
Charges12,50814,52815,9838%10%11%13,46213,28213,259-
insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881-1.89%-
receivables3,8913,9517,1913%3%5%4,2394,1064,124-1.52%-
expenses36,38737,36238,10425%25%25%36,85136,76336,752-
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
taxes(2,504)(5,738)(1,050)-2%-4%-1%(3,329)(3,322)(3,242)-
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
1%(743)(765)(786)1265.79%-92.24%Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,

COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
0(1,031)(300)0%-1%-0%(339)(307)(286)-100.00%243.67%NET
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,3553.97%15.66%
Equivalents77,35684,50178,95811%12%11%-
15,37413,79211,5262%2%2%11.47%19.66%Net Financial
Recievables258,028279,918310,05538%39%41%-7.82%-
Equipment69,74365,73966,21410%9%9%6.09%-
0Goodwill73,44772,62564,47311%10%9%1.13%12.64%Other
assets100,076111,70196,34215%16%13%-10.41%15.94%Asset
Assets 685,328718,189751,216100.00%100.00%100.00%-
Borrowings101,392137,611117,95918%23%19%-
Payable1,9801,7971,5630%0%0%10.18%14.97%Other GE
Current
Liabilities14,89514,79611,3963%2%2%0.67%29.84%Non-

entities30,12329,25830,0605%5%5%2.96%-2.67%Bank
Borrowings236,084243,459293,32342%41%47%-3.03%-
556,858600,055627,018100%100%100%-7.20%-
00%0%0%- 0- 0Common
254.65%Cash flow hedges(722)(1,176)(1,280)-1%-1%-1%-
38.61%-8.13%Benefit plans(20,597)(22,901)(15,853)-17%-20%-
13%-10.06%44.46%Other
Earnings144,055137,786131,137117%118%110%4.55%5.07%Le
123,026116,438118,936100%100%100%5.66%-
2.10%Noncontrolling
interests5,4441,69652621%0%1%220.99%-67.77%Total
4.58%-4.40%

201220112010
ROE11.09%12.15%9.79%
Goods72,99166,87560,81250%45%40%69,93870,54870,6099.15
%9.97%Sales of
Services27,15827,64839,62518%19%26%28,55228,04328,107-
1.77%-30.23%Other
Income2,5635,0641,1512%3%1%3,1723,1793,115-
services44,64747,70148,62330%32%32%45,96145,74145,697-
147,359147,288150,211100%100%100%147,623147,510147,52
Sold56,78551,45546,00539%35%31%54,10854,64654,69810.36
Sold17,52516,82325,70812%11%17%18,13317,81917,8844.17%
Charges12,50814,52815,9838%10%11%13,46213,28213,259-
insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881-1.89%-
receivables3,8913,9517,1913%3%5%4,2394,1064,124-1.52%-
expenses36,38737,36238,10425%25%25%36,85136,76336,752-

Expenses129,953127,031136,00388.19%86.25%90.54%129,681
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
taxes(2,504)(5,738)(1,050)-2%-4%-1%(3,329)(3,322)(3,242)-
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
1%(743)(765)(786)1265.79%-92.24%Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
0(1,031)(300)0%-1%-0%(339)(307)(286)-100.00%243.67%NET
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,3553.97%15.66%
Equivalents77,35684,50178,95811%12%11%-
15,37413,79211,5262%2%2%11.47%19.66%Net Financial
Recievables258,028279,918310,05538%39%41%-7.82%-
Equipment69,74365,73966,21410%9%9%6.09%-
0Goodwill73,44772,62564,47311%10%9%1.13%12.64%Other

assets100,076111,70196,34215%16%13%-10.41%15.94%Asset
Assets 685,328718,189751,216100.00%100.00%100.00%-
Borrowings101,392137,611117,95918%23%19%-
Payable1,9801,7971,5630%0%0%10.18%14.97%Other GE
Current
Liabilities14,89514,79611,3963%2%2%0.67%29.84%Non-
entities30,12329,25830,0605%5%5%2.96%-2.67%Bank
Borrowings236,084243,459293,32342%41%47%-3.03%-
556,858600,055627,018100%100%100%-7.20%-
00%0%0%- 0- 0Common
254.65%Cash flow hedges(722)(1,176)(1,280)-1%-1%-1%-
38.61%-8.13%Benefit plans(20,597)(22,901)(15,853)-17%-20%-
13%-10.06%44.46%Other

Earnings144,055137,786131,137117%118%110%4.55%5.07%Le
123,026116,438118,936100%100%100%5.66%-
2.10%Noncontrolling
interests5,4441,69652621%0%1%220.99%-67.77%Total
4.58%-4.40%
201220112010
ROA1.99%1.97%1.55%
Goods72,99166,87560,81250%45%40%69,93870,54870,6099.15
%9.97%Sales of
Services27,15827,64839,62518%19%26%28,55228,04328,107-
1.77%-30.23%Other
Income2,5635,0641,1512%3%1%3,1723,1793,115-
services44,64747,70148,62330%32%32%45,96145,74145,697-

147,359147,288150,211100%100%100%147,623147,510147,52
Sold56,78551,45546,00539%35%31%54,10854,64654,69810.36
Sold17,52516,82325,70812%11%17%18,13317,81917,8844.17%
Charges12,50814,52815,9838%10%11%13,46213,28213,259-
insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881-1.89%-
receivables3,8913,9517,1913%3%5%4,2394,1064,124-1.52%-
expenses36,38737,36238,10425%25%25%36,85136,76336,752-
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
taxes(2,504)(5,738)(1,050)-2%-4%-1%(3,329)(3,322)(3,242)-
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
1%(743)(765)(786)1265.79%-92.24%Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
0(1,031)(300)0%-1%-0%(339)(307)(286)-100.00%243.67%NET
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,3553.97%15.66%

Equivalents77,35684,50178,95811%12%11%-
15,37413,79211,5262%2%2%11.47%19.66%Net Financial
Recievables258,028279,918310,05538%39%41%-7.82%-
Equipment69,74365,73966,21410%9%9%6.09%-
0Goodwill73,44772,62564,47311%10%9%1.13%12.64%Other
assets100,076111,70196,34215%16%13%-10.41%15.94%Asset
Assets 685,328718,189751,216100.00%100.00%100.00%-
Borrowings101,392137,611117,95918%23%19%-
Payable1,9801,7971,5630%0%0%10.18%14.97%Other GE
Current
Liabilities14,89514,79611,3963%2%2%0.67%29.84%Non-
entities30,12329,25830,0605%5%5%2.96%-2.67%Bank
Borrowings236,084243,459293,32342%41%47%-3.03%-

556,858600,055627,018100%100%100%-7.20%-
00%0%0%- 0- 0Common
254.65%Cash flow hedges(722)(1,176)(1,280)-1%-1%-1%-
38.61%-8.13%Benefit plans(20,597)(22,901)(15,853)-17%-20%-
13%-10.06%44.46%Other
Earnings144,055137,786131,137117%118%110%4.55%5.07%Le
123,026116,438118,936100%100%100%5.66%-
2.10%Noncontrolling
interests5,4441,69652621%0%1%220.99%-67.77%Total
4.58%-4.40%

201220112010
Current Ratio1.12 0.91 0.98
Goods72,99166,87560,81250%45%40%69,93870,54870,6099.15
%9.97%Sales of
Services27,15827,64839,62518%19%26%28,55228,04328,107-
1.77%-30.23%Other
Income2,5635,0641,1512%3%1%3,1723,1793,115-
services44,64747,70148,62330%32%32%45,96145,74145,697-
147,359147,288150,211100%100%100%147,623147,510147,52
Sold56,78551,45546,00539%35%31%54,10854,64654,69810.36
Sold17,52516,82325,70812%11%17%18,13317,81917,8844.17%
Charges12,50814,52815,9838%10%11%13,46213,28213,259-
insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881-1.89%-
receivables3,8913,9517,1913%3%5%4,2394,1064,124-1.52%-
expenses36,38737,36238,10425%25%25%36,85136,76336,752-
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
taxes(2,504)(5,738)(1,050)-2%-4%-1%(3,329)(3,322)(3,242)-

OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
1%(743)(765)(786)1265.79%-92.24%Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
0(1,031)(300)0%-1%-0%(339)(307)(286)-100.00%243.67%NET
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,3553.97%15.66%
Equivalents77,35684,50178,95811%12%11%-
15,37413,79211,5262%2%2%11.47%19.66%Net Financial
Recievables258,028279,918310,05538%39%41%-7.82%-
Equipment69,74365,73966,21410%9%9%6.09%-
0Goodwill73,44772,62564,47311%10%9%1.13%12.64%Other
assets100,076111,70196,34215%16%13%-10.41%15.94%Asset
Assets 685,328718,189751,216100.00%100.00%100.00%-

Borrowings101,392137,611117,95918%23%19%-
Payable1,9801,7971,5630%0%0%10.18%14.97%Other GE
Current
Liabilities14,89514,79611,3963%2%2%0.67%29.84%Non-
entities30,12329,25830,0605%5%5%2.96%-2.67%Bank
Borrowings236,084243,459293,32342%41%47%-3.03%-
556,858600,055627,018100%100%100%-7.20%-
00%0%0%- 0- 0Common
254.65%Cash flow hedges(722)(1,176)(1,280)-1%-1%-1%-
38.61%-8.13%Benefit plans(20,597)(22,901)(15,853)-17%-20%-
13%-10.06%44.46%Other
Earnings144,055137,786131,137117%118%110%4.55%5.07%Le
123,026116,438118,936100%100%100%5.66%-
2.10%Noncontrolling
interests5,4441,69652621%0%1%220.99%-67.77%Total

4.58%-4.40%
201220112010
Inventory Turnover75.51 73.73 58.66
15REVENUESSales of
Goods72,99166,87560,81250%45%40%69,93870,54870,609Sale
s of
Services27,15827,64839,62518%19%26%28,55228,04328,107Ot
her Income2,5635,0641,1512%3%1%3,1723,1793,115GECS
earnings from continuing operations- 0- 0- 00%0%0%- 0- 0-
0GECS revenues from
services44,64747,70148,62330%32%32%45,96145,74145,697
Total Revenue
147,359147,288150,211100%100%100%147,623147,510147,52
9Cost & ExpensesCost of Goods
Sold56,78551,45546,00539%35%31%54,10854,64654,698Cost
of Services
Sold17,52516,82325,70812%11%17%18,13317,81917,884Intere
sts and other Financial
Charges12,50814,52815,9838%10%11%13,46213,28213,259Inv

estment contracts, insurance losses and insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881Provision for
losses on financing
receivables3,8913,9517,1913%3%5%4,2394,1064,124Other
costs and
expenses36,38737,36238,10425%25%25%36,85136,76336,752T
otal Costs &
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
129,498129,598EARNINGS (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
7,930Benefit (provision) for income taxes(2,504)(5,738)(1,050)-
2%-4%-1%(3,329)(3,322)(3,242)EARNINGS FROM
CONTINUING
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
,69014,688Earnings (loss) from discontinued operations, net of
taxes(1,038)(76)(979)-1%-0%-1%(743)(765)(786)Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
902Less net earnings attributable to noncontrolling
interests2232925350%0%0%275261261NET EARNINGS
ATTRIBUTABLE TO THE
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
13,641Preferred stock dividends declared- 0(1,031)(300)0%-
1%-0%(339)(307)(286)NET EARNINGS ATTRIBUTABLE TO
GE COMMON
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,355
1231-Dec-1131-Dec-1031-Dec-13AssetsCash And Cash
Equivalents77,35684,50178,95811%12%11%79,660Investment
Securities48,51047,37443,9387%7%6%47,712Current
Recievables21,50020,47818,6213%3%2%20,906Inventory15,37
413,79211,5262%2%2%14,515Net Financial
Recievables258,028279,918310,05538%39%41%269,798Other
GECS Recievables7,9617,5618,9511%1%1%7,940Net Property,
Plant &

Equipment69,74365,73966,21410%9%9%68,189Investment in
GECC- 0- 0- 00%0%0%-
0Goodwill73,44772,62564,47311%10%9%72,303Other
intangible assets - net11,98712,0689,9732%2%1%11,810All
other assets100,076111,70196,34215%16%13%103,190Asset of
Businesses held for sale21171136,8870%0%5%4,029Assets of
Discontinued Operations1,1351,7215,2780%0%1%1,725 Total
Assets
685,328718,189751,216100%100%100%701,775LiabilitiesShort
Term
Borrowings101,392137,611117,95918%23%19%113,914Accoun
ts Payable, Principally Trade
Accounts15,67516,40014,6573%3%2%15,791Progress
accrued10,87711,34911,1422%2%2%11,045Dividends
Payable1,9801,7971,5630%0%0%1,883Other GE Current
Liabilities14,89514,79611,3963%2%2%14,515Non-recourse
borrowings of consolidated securitization
entities30,12329,25830,0605%5%5%29,857Bank
Deposits46,46143,11537,2988%7%6%44,541Long Term
Borrowings236,084243,459293,32342%41%47%244,020Investm
ent contracts, insurance liabilities and insurance annuity
benefits28,26829,77429,5825%5%5%28,851All other
Liabilities68,67670,65358,84412%12%9%68,286Deferred
Income Taxes(75)(131)2,840-0%-0%0%200Liabilities of
businesses held for sale15734516,0470%0%3%1,802Liabilities
of discontinued operations2,3451,6292,3070%0%0%2,126 Total
Liabilities
556,858600,055627,018100%100%100%576,833Stockholders'
EquityGECC Preferred Stocks- 0- 0- 00%0%0%- 0Common
Stock7027027021%1%1%702Investment
securities677(30)(636)1%-0%-1%334Currency translation
adjustments412133(86)0%0%-0%278Cash flow
hedges(722)(1,176)(1,280)-1%-1%-1%(914)Benefit
plans(20,597)(22,901)(15,853)-17%-20%-13%(20,814)Other
Capital33,07033,69336,89027%29%31%33,639Retained

Earnings144,055137,786131,137117%118%110%140,883Less
Common Stock held in treasury(34,571)(31,769)(31,938)-28%-
27%-27%(33,467) Total Stockholder Equity
123,026116,438118,936100%100%100%120,641Noncontrolling
interests5,4441,69652621%0%1%4,301Total Liabilities &
Equity685,328718,189751,216100%100%100%701,775
Ratio49.57%53.64%52.26%Operating Margin
Ratio11.81%13.75%9.46%Profit
Margin9.26%9.61%7.75%ROE11.09%12.15%9.79%ROA1.99%1
.97%1.55%Current Ratio1.120.910.98Debt
Ratio81.25%83.55%83.47%DSO
Ratio72.9769.4867.00Inventory Turnover75.5173.7358.66Assets
Turnover21.50%20.51%20.00%
201220112010
Assets Turnover21.50%20.51%20.00%
15REVENUESSales of
Goods72,99166,87560,81250%45%40%69,93870,54870,609Sale
s of
Services27,15827,64839,62518%19%26%28,55228,04328,107Ot
her Income2,5635,0641,1512%3%1%3,1723,1793,115GECS
earnings from continuing operations- 0- 0- 00%0%0%- 0- 0-
0GECS revenues from
services44,64747,70148,62330%32%32%45,96145,74145,697
Total Revenue
147,359147,288150,211100%100%100%147,623147,510147,52
9Cost & ExpensesCost of Goods
Sold56,78551,45546,00539%35%31%54,10854,64654,698Cost
of Services
Sold17,52516,82325,70812%11%17%18,13317,81917,884Intere
sts and other Financial
Charges12,50814,52815,9838%10%11%13,46213,28213,259Inv
estment contracts, insurance losses and insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881Provision for

losses on financing
receivables3,8913,9517,1913%3%5%4,2394,1064,124Other
costs and
expenses36,38737,36238,10425%25%25%36,85136,76336,752T
otal Costs &
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
129,498129,598EARNINGS (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
7,930Benefit (provision) for income taxes(2,504)(5,738)(1,050)-
2%-4%-1%(3,329)(3,322)(3,242)EARNINGS FROM
CONTINUING
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
,69014,688Earnings (loss) from discontinued operations, net of
taxes(1,038)(76)(979)-1%-0%-1%(743)(765)(786)Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
902Less net earnings attributable to noncontrolling
interests2232925350%0%0%275261261NET EARNINGS
ATTRIBUTABLE TO THE
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
13,641Preferred stock dividends declared- 0(1,031)(300)0%-
1%-0%(339)(307)(286)NET EARNINGS ATTRIBUTABLE TO
GE COMMON
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,355
1231-Dec-1131-Dec-1031-Dec-13AssetsCash And Cash
Equivalents77,35684,50178,95811%12%11%79,660Investment
Securities48,51047,37443,9387%7%6%47,712Current
Recievables21,50020,47818,6213%3%2%20,906Inventory15,37
413,79211,5262%2%2%14,515Net Financial
Recievables258,028279,918310,05538%39%41%269,798Other
GECS Recievables7,9617,5618,9511%1%1%7,940Net Property,
Plant &
Equipment69,74365,73966,21410%9%9%68,189Investment in
GECC- 0- 0- 00%0%0%-

0Goodwill73,44772,62564,47311%10%9%72,303Other
intangible assets - net11,98712,0689,9732%2%1%11,810All
other assets100,076111,70196,34215%16%13%103,190Asset of
Businesses held for sale21171136,8870%0%5%4,029Assets of
Discontinued Operations1,1351,7215,2780%0%1%1,725 Total
Assets
685,328718,189751,216100%100%100%701,775LiabilitiesShort
Term
Borrowings101,392137,611117,95918%23%19%113,914Accoun
ts Payable, Principally Trade
Accounts15,67516,40014,6573%3%2%15,791Progress
accrued10,87711,34911,1422%2%2%11,045Dividends
Payable1,9801,7971,5630%0%0%1,883Other GE Current
Liabilities14,89514,79611,3963%2%2%14,515Non-recourse
borrowings of consolidated securitization
entities30,12329,25830,0605%5%5%29,857Bank
Deposits46,46143,11537,2988%7%6%44,541Long Term
Borrowings236,084243,459293,32342%41%47%244,020Investm
ent contracts, insurance liabilities and insurance annuity
benefits28,26829,77429,5825%5%5%28,851All other
Liabilities68,67670,65358,84412%12%9%68,286Deferred
Income Taxes(75)(131)2,840-0%-0%0%200Liabilities of
businesses held for sale15734516,0470%0%3%1,802Liabilities
of discontinued operations2,3451,6292,3070%0%0%2,126 Total
Liabilities
556,858600,055627,018100%100%100%576,833Stockholders'
EquityGECC Preferred Stocks- 0- 0- 00%0%0%- 0Common
Stock7027027021%1%1%702Investment
securities677(30)(636)1%-0%-1%334Currency translation
adjustments412133(86)0%0%-0%278Cash flow
hedges(722)(1,176)(1,280)-1%-1%-1%(914)Benefit
plans(20,597)(22,901)(15,853)-17%-20%-13%(20,814)Other
Capital33,07033,69336,89027%29%31%33,639Retained
Earnings144,055137,786131,137117%118%110%140,883Less
Common Stock held in treasury(34,571)(31,769)(31,938)-28%-

27%-27%(33,467) Total Stockholder Equity
123,026116,438118,936100%100%100%120,641Noncontrolling
interests5,4441,69652621%0%1%4,301Total Liabilities &
Equity685,328718,189751,216100%100%100%701,775
Ratio49.57%53.64%52.26%Operating Margin
Ratio11.81%13.75%9.46%Profit
Margin9.26%9.61%7.75%ROE11.09%12.15%9.79%ROA1.99%1
.97%1.55%Current Ratio1.120.910.98Debt
Ratio81.25%83.55%83.47%DSO
Ratio72.9769.4867.00Inventory Turnover75.5173.7358.66Assets
Turnover21.50%20.51%20.00%
201220112010
Debt Ratio0.81 0.84 0.83
Goods72,99166,87560,81250%45%40%69,93870,54870,6099.15
%9.97%Sales of
Services27,15827,64839,62518%19%26%28,55228,04328,107-
1.77%-30.23%Other
Income2,5635,0641,1512%3%1%3,1723,1793,115-
services44,64747,70148,62330%32%32%45,96145,74145,697-
147,359147,288150,211100%100%100%147,623147,510147,52
Sold56,78551,45546,00539%35%31%54,10854,64654,69810.36
Sold17,52516,82325,70812%11%17%18,13317,81917,8844.17%
Charges12,50814,52815,9838%10%11%13,46213,28213,259-
insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881-1.89%-

receivables3,8913,9517,1913%3%5%4,2394,1064,124-1.52%-
expenses36,38737,36238,10425%25%25%36,85136,76336,752-
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
taxes(2,504)(5,738)(1,050)-2%-4%-1%(3,329)(3,322)(3,242)-
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314
1%(743)(765)(786)1265.79%-92.24%Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
0(1,031)(300)0%-1%-0%(339)(307)(286)-100.00%243.67%NET
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,3553.97%15.66%
Equivalents77,35684,50178,95811%12%11%-
15,37413,79211,5262%2%2%11.47%19.66%Net Financial
Recievables258,028279,918310,05538%39%41%-7.82%-

Equipment69,74365,73966,21410%9%9%6.09%-
0Goodwill73,44772,62564,47311%10%9%1.13%12.64%Other
assets100,076111,70196,34215%16%13%-10.41%15.94%Asset
Assets 685,328718,189751,216100.00%100.00%100.00%-
Borrowings101,392137,611117,95918%23%19%-
Payable1,9801,7971,5630%0%0%10.18%14.97%Other GE
Current
Liabilities14,89514,79611,3963%2%2%0.67%29.84%Non-
entities30,12329,25830,0605%5%5%2.96%-2.67%Bank
Borrowings236,084243,459293,32342%41%47%-3.03%-
556,858600,055627,018100%100%100%-7.20%-
00%0%0%- 0- 0Common

254.65%Cash flow hedges(722)(1,176)(1,280)-1%-1%-1%-
38.61%-8.13%Benefit plans(20,597)(22,901)(15,853)-17%-20%-
13%-10.06%44.46%Other
Earnings144,055137,786131,137117%118%110%4.55%5.07%Le
123,026116,438118,936100%100%100%5.66%-
2.10%Noncontrolling
interests5,4441,69652621%0%1%220.99%-67.77%Total
4.58%-4.40%
201220112010
Quick Ratio1.02 0.84 0.90
Cash Ratio0.87 0.72 0.78
DSO Ratio72.97 69.48 67.00
Return on Invested Capital11.09%12.15%9.79%
Debt to Equity Ratio4.53 5.15 5.27
Interest Coverage Ratio2.39 2.39 1.89
EPS1.351.241.18
Payout Ratio2.08%2.27%2.38%

Dividend Cover47.97 44.06 41.93
Goods72,99166,87560,81250%45%40%69,93870,54870,6099.15
%9.97%Sales of
Services27,15827,64839,62518%19%26%28,55228,04328,107-
1.77%-30.23%Other
Income2,5635,0641,1512%3%1%3,1723,1793,115-
services44,64747,70148,62330%32%32%45,96145,74145,697-
147,359147,288150,211100%100%100%147,623147,510147,52
Sold56,78551,45546,00539%35%31%54,10854,64654,69810.36
Sold17,52516,82325,70812%11%17%18,13317,81917,8844.17%
Charges12,50814,52815,9838%10%11%13,46213,28213,259-
insurance annuity
benefits2,8572,9123,0122%2%2%2,8892,8822,881-1.89%-
receivables3,8913,9517,1913%3%5%4,2394,1064,124-1.52%-
expenses36,38737,36238,10425%25%25%36,85136,76336,752-
Expenses129,953127,031136,00388.19%86.25%90.54%129,681
TAXES17,40620,25714,20811.81%13.75%9.46%17,94218,0121
taxes(2,504)(5,738)(1,050)-2%-4%-1%(3,329)(3,322)(3,242)-
OPERATIONS14,90214,51913,15810.11%9.86%8.76%14,61314

1%(743)(765)(786)1265.79%-92.24%Net
Earnings13,86414,44312,1799.41%9.81%8.11%13,86913,92513,
COMPANY13,64114,15111,6449.26%9.61%7.75%13,59413,664
0(1,031)(300)0%-1%-0%(339)(307)(286)-100.00%243.67%NET
SHAREOWNERS13,64113,12011,3449.26%8.91%7.55%13,255
13,35713,3553.97%15.66%
Equivalents77,35684,50178,95811%12%11%-
15,37413,79211,5262%2%2%11.47%19.66%Net Financial
Recievables258,028279,918310,05538%39%41%-7.82%-
Equipment69,74365,73966,21410%9%9%6.09%-
0Goodwill73,44772,62564,47311%10%9%1.13%12.64%Other
assets100,076111,70196,34215%16%13%-10.41%15.94%Asset
Assets 685,328718,189751,216100.00%100.00%100.00%-
Borrowings101,392137,611117,95918%23%19%-

Payable1,9801,7971,5630%0%0%10.18%14.97%Other GE
Current
Liabilities14,89514,79611,3963%2%2%0.67%29.84%Non-
entities30,12329,25830,0605%5%5%2.96%-2.67%Bank
Borrowings236,084243,459293,32342%41%47%-3.03%-
556,858600,055627,018100%100%100%-7.20%-
00%0%0%- 0- 0Common
254.65%Cash flow hedges(722)(1,176)(1,280)-1%-1%-1%-
38.61%-8.13%Benefit plans(20,597)(22,901)(15,853)-17%-20%-
13%-10.06%44.46%Other
Earnings144,055137,786131,137117%118%110%4.55%5.07%Le
123,026116,438118,936100%100%100%5.66%-
2.10%Noncontrolling
interests5,4441,69652621%0%1%220.99%-67.77%Total
4.58%-4.40%

Common Size BSPeriod Ending31-Dec-12Percent 31-Dec-
11Percent 31-Dec-10Percent Balance SheetAssetsCash And
Cash
Equivalents77,35611.29%84,50111.77%78,94310.56%Short
Term Investment 48,5107.08%47,3746.60%43,9385.88%Net
Receivables287,48941.95%307,95742.88%329,20444.02%Inven
tory15,3742.24%13,7921.92%11,5261.54%Total Current
Assets428,729453,624463,611Long Term InvestmentsProperty,
Plant &
Equipment69,95410.21%66,4509.25%103,09913.79%Goodwill7
3,44710.72%72,62510.11%64,3888.61%Intangible
Assets11,9871.75%12,0681.68%9,9711.33%Other Assets
101,21114.77%113,42215.79%106,72414.27% Total Assets
685,328100.00%718,189100.00%747,793100.00%LiabilitiesCur
rent LiabilitiesAccounts
Payable28,5325.07%29,5464.91%56,9439.05%Short/Current
Long Term
Debt131,51523.39%166,86927.73%147,97723.53%Other
Current
Liabilities61,35610.91%57,9119.62%67,32810.71%Total
Current Liabilites 221,403254,326272,248Long Term

Debt236,08441.99%243,45940.46%293,32346.64%Other
Liabilities99,44617.69%102,40117.02%55,2718.79%Deferred
Long Term Liability Charges(75)-0.01%(131)-
0.02%2,7530.44%Minority
Interest5,4440.97%1,6960.28%5,2620.84%Total
Liabilites562,302100.00%601,751100.00%628,857100.00%Stoc
kholders' EquityCommon
Stock7020.57%7021%7020.59%Retained
Earnings144,055117.09%137,786118.33%131,137110.26%Treau
ary Stock(34,571)-28.10%(31,769)-27.28%(31,938)-
26.85%Other Stockholder
Equity12,84010.44%9,7198.35%19,03516.00% Total
Stockholder Equity
123,026100.00%116,438118,936100.00%Net Tangilble
Assets37,59231,74544,577
Common Size ISPeriod Ending31-Dec-12Percent 31-Dec-
11Percent 31-Dec-10Percent Income StatementTotal
Revenue147,359100.00%147,288100.00%149,567100.00%Cost
of Revenue77,16752.37%71,19048.33%74,72549.96%Gross
Profit70,19247.63%76,09851.67%74,84250.04%Operating
ExpenseResearch DevelopmentSelling General and
Administrative36,38724.69%37,36225.37%38,03325.43%Non
Recurring3,8912.64%3,9512.68%7,0854.74%OthersTotal
Operating ExpensesOperating Income or
Loss29,91434,78529,724Income from Continuting
OperationsTotal other Income/Expenses NetEarnings Before
Interest and
Taxes29,91420.30%34,78523.62%29,72419.87%Interest
Expense12,5088.49%14,5289.86%15,53710.39%Income before
Tax17,40611.81%20,25713.75%14,1879.49%Income Tax
Expense2,5041.70%5,7383.90%1,0390.69%Minority
Interest(223)-0.15%(292)-0.20%(535)-0.36%Net Income From
Continuing Ops14,90210.11%14,5199.86%13,1488.79%Non-
recurring EventsDiscontinued Operations(1,038)-0.70%(76)-
0.05%(969)-0.65%Extraordinary ItemsEffect of Accounting
ChangesOther ItemsNet

Income13,6419.26%14,1519.61%11,6447.79%Preferred Stock
and Other Adjustments(1,031)(300)Net Income Applicable to
Common Shares13,64113,12011,344
Horizontal ISPeriod Ending31-Dec-12Amt ChangePercent
Change31-Dec-11Amt ChangePercent Change31-Dec-10Income
StatementTotal
Revenue147,359710.05%147,288(2,279)1.52%149,567Cost of
Revenue77,1675,9778.40%71,190(3,535)4.73%74,725Gross
Profit70,192(5,906)7.76%76,0981,2561.68%74,842Operating
ExpenseResearch DevelopmentSelling General and
Administrative36,387(975)2.61%37,362(671)1.76%38,033Non
Recurring3,891(60)1.52%3,951(3,134)44.23%7,085OthersTotal
Operating ExpensesOperating Income or
Loss29,914(4,871)14.00%34,7855,06117.03%29,724Income
from Continuting OperationsTotal other Income/Expenses
NetEarnings Before Interest and
Taxes29,914(4,871)14.00%34,7855,06117.03%29,724Interest
Expense12,508(2,020)13.90%14,528(1,009)6.49%15,537Income
before
Tax17,406(2,851)14.07%20,2576,07042.79%14,187Income Tax
Expense2,504(3,234)56.36%5,7384,699452.26%1,039Minority
Interest(223)6923.63%(292)24345.42%(535)Net Income From
Continuing Ops14,9023832.64%14,5191,37110.43%13,148Non-
recurring EventsDiscontinued
Operations(1,038)(962)1265.79%(76)89392.16%(969)Extraordi
nary ItemsEffect of Accounting ChangesOther ItemsNet
Income13,641(510)35.15%14,1512,50721.53%11,644Preferred
Stock and Other Adjustments(1,031)(731)243.67%(300)Net
Income Applicable to Common
Shares13,6415213.97%13,1201,77615.66%11,344
Horizontal BSPeriod Ending31-Dec-12Amt ChangePercent
Change31-Dec-11Amt ChangePercent Change31-Dec-10Balance
SheetAssetsCash And Cash
Equivalents77,356(7,145)8.46%84,5015,5587.04%78,943Short
Term Investment
48,5101,1362.40%47,3743,4367.82%43,938Net

Receivables287,489(20,468)6.65%307,957(21,247)6.45%329,20
4Inventory15,3741,58211.47%13,7922,26619.66%11,526Total
Current
Assets428,729(24,895)5.49%453,624(9,987)2.15%463,611Long
Term InvestmentsProperty, Plant &
Equipment69,9543,5045.27%66,450(36,649)35.55%103,099Goo
dwill73,4478221.13%72,6258,23712.79%64,388Intangible
Assets11,987(81)0.67%12,0682,09721.03%9,971Accumlated
AmortizationOther Assets
101,211(12,211)10.77%113,4226,6986.28%106,724Deferred
Long Term Asset Changes Total Assets
685,328(32,861)4.58%718,189(29,604)3.96%747,793Liabilities
Current LiabilitiesAccounts
Payable28,532(1,014)3.43%29,546(27,397)48.11%56,943Short/
Current Long Term
Debt131,515(35,354)21.19%166,86918,89212.77%147,977Other
Current
Liabilities61,3563,4455.95%57,911(9,417)13.99%67,328Total
Current Liabilites
221,403(32,923)12.95%254,326(17,922)6.58%272,248Long
Term
Debt236,084(7,375)3.03%243,459(49,864)17.00%293,323Other
Liabilities99,446(2,955)2.89%102,40147,13085.27%55,271Defe
rred Long Term Liability
Charges(75)5642.75%(131)(2,884)104.76%2,753Minority
Interest5,4443,748220.99%1,696(3,566)67.77%5,262Negative
GoodwillTotal
Liabilites562,302(39,449)6.56%601,751(27,106)4.31%628,857S
tockholders' EquityMisc StockRedeemable Preferred
StockPreferred StockCommon Stock702- 00.00%702-
00%702Retained
Earnings144,0556,2694.55%137,7866,6495.07%131,137Treauar
y
Stock(34,571)(2,802)20.35%(31,769)1690.53%(31,938)Capital
Surplus- 0Other Stockholder
Equity12,8403,12132.11%9,719(9,316)48.94%19,035 Total

Stockholder Equity
123,0266,5885.66%116,438(2,498)2.10%118,936Net Tangilble
Assets37,5925,84718.42%31,745(12,832)28.79%44,577
Ratio Analysis20122011Current Ratio1.940.6316220382A/R
Turnover0.00126961380.0011852304
Trend Analysis BSPeriod Ending201220112010Balance
SheetAssetsCash And Cash
Equivalents97.99%107.04%100%Short Term Investment
110.41%107.82%100%Net
Receivables87.33%93.55%100%Inventory133.39%119.66%100
%Total Current Assets92.48%97.85%100%Long Term
InvestmentsProperty, Plant &
Equipment67.85%64.45%100%Goodwill114.07%112.79%100%I
ntangible Assets120.22%121.03%100%Accumlated
AmortizationOther Assets 94.83%106.28%100%Deferred Long
Term Asset Changes Total Assets
91.65%96.04%100%LiabilitiesCurrent LiabilitiesAccounts
Payable50.11%51.89%100%Short/Current Long Term
Debt88.88%112.77%100%Other Current
Liabilities91.13%86.01%100%Total Current Liabilites
81.32%93.42%100%Long Term Debt80.49%83.00%100%Other
Liabilities179.92%185.27%100%Deferred Long Term Liability
Charges-2.72%-4.76%100%Minority
Interest103.46%32.23%100%Negative GoodwillTotal
Liabilites89.42%95.69%100%Stockholders' EquityMisc
StockRedeemable Preferred StockPreferred StockCommon
StockRetained Earnings100.00%100.00%100%Treauary
Stock109.85%105.07%100%Capital Surplus-108.24%-
99.47%100%Other Stockholder Equity67.45%51.06%100%
Total Stockholder Equity 103.44%97.90%100%Net Tangilble
Assets84.33%71.21%100%
Trend Analysis ISPeriod Ending201220112010Income
StatementTotal Revenue98.52%98.48%100%Cost of
Revenue103.27%95.27%100%Gross
Profit93.79%101.68%100%Operating ExpenseResearch
DevelopmentSelling General and

Administrative95.67%98.24%100%Non
Recurring54.92%55.77%100%OthersTotal Operating
ExpensesOperating Income or
Loss100.64%117.03%100%Income from Continuting
OperationsTotal other Income/Expenses NetEarnings Before
Interest and Taxes100.64%117.03%100%Interest
Expense80.50%93.51%100%Income before
Tax122.69%142.79%100%Income Tax
Expense241.00%552.26%100%Minority
Interest41.68%54.58%100%Net Income From Continuing
Ops113.34%110.43%100%Non-recurring EventsDiscontinued
Operations107.12%7.84%100%Extraordinary ItemsEffect of
Accounting ChangesOther ItemsNet
Income117.15%121.53%100%Preferred Stock and Other
Adjustments343.67%100%Net Income Applicable to Common
Shares120.25%115.66%100%
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include the following in the order listed:

Cover Page
Table of Contents
Five sections:
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findings. This should be brief; similar to an abstract.
2. Analysis overview - Describe your approach to analyzing the
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compensate for accounting policies adopted by the company,
describe those adjustments and why you made those
adjustments.
3. Evidential matter - This is your financial analysis.
4. Assumptions - Describe the assumptions you made in
performing your analysis.
5. Inferences and conclusions - Draw inferences and
conclusions from your evidential matter. The evidence you
gather must support your inferences and conclusions. In this
section, you should discuss limitations on your results due to
accounting policies adopted by the company and suggest
possible adjustments to the underlying data of your analysis that
might have improved your analysis of the company.
Appendix - Copies of the financial statements used in your
report.
Excluding the appendix, the paper should be between 10 to 12
pages in length.
Financial Statements and Analysis to include:
1. Select, compute, and interpret the results of at least three
ratios for the latest two years from each of the following
categories:
· Return on invested capital
· Profitability
· Asset utilization and efficiency

· Liquidity
· Capital structure and solvency
· Financial market
2. Prepare common-size balance sheets and income statements
for the past three years. Comment on the results
3. Prepare an index trend analysis of the balance sheet and
income statement for the latest three-year period. Identify
positive and negative trends.
Nicole Henry
TREND ANALYSIS
Trend analysis indicates that the company has potential for
growth and t
analysis reveals that the current period will have 60% weight-
age to address the cu.-...u,I...O"'f -
p~~~~t for the last period has been accounted for 30% and t~
+n lk,n~ ~n -;;; ~. d' '1 Or0.l1.~=: . b (,pi ~ d!.JC:) -7year peno
IS ta en as /0 Impact JD t e cun;ent year. . (
~f~ -1~ JllPlu! .
10'Mf~~ ~ ff~~
~" n
Period Ending ~1;i~d~n~fil~~~1·.·.···3t4)l~~10.

~X;P¢~'J~3.tL~)ci:·n Jl~m;~H~ Q-
Assets
Cash And Cash Equivalents
Investment Securities
Current Recicvables
Inventory
Net Financial Rccievables
Other GECS Recievablcs
Net Property, Plant & Equipment
Investment in GECC
Goodwill
Other intangible assets - net
All other assets
Asset of Businesses held for sale
Assets of Discontinued Operations
Total Assets
Lia bilities
Short Term Borrowings
Accounts Payable, Principally Trade Accounts
Progress Collections and Price Adjustments accrued
Dividends Payable
Other GE Current Liabilities
Non-recourse borrowings of consolidated securitization entities
Bank Deposits
Long Term Borrowings
Investment contracts. insurance liabilities and insurance anlluity
benet!t;
All other Liabilities
Deferred Income Taxes
Liabilities of businesses held for sale
Liabilities of discontinued operations
Total Uabilities

Stockholders' Equity
GECC Preferred Stocks
Common Stock
Investment securities
Currency translation adjustments
Cash flow hedges
Benefit plans
Other Capital
Retained Earnings
Less Common Stock held in treasury
Total Stockholder Equity
Noncontrolling interests
Total Uabilities & Equity
77.356
48,510
21.500
15,374
258,028
7,961
69,743
73,447
11,987
100,076
211
1,135
685,328
101,392
15,675

10,877
1,980
14,895
30,123
46,461
236,084
28,268
68,676
(75)
157
2,345
556,858
702
677
412
(722)
(20,597)
33,070
144,055
(34,571 )
123,026
5,444
685,328
84,501
47,374
20,478
13,792

279,918
7,561
65,739
72.625
12,068
111,701
711
1,721
718,189
137,611
16,400
1l,349
1,797
14,796
29,258
43,115
243,459
29,774
70,653
(131 )
345
1,629
600,055
702
(30)

133
(1,176)
(22,901 )
33,693
137,786
(31,769)
116,438
1,696
718,189
78,958
43.938
18,621
11,526
310,055
8,951
66,214
64,473
9,973
96,342
36,887
5,278
751,216
117,959
14,657
11,142

1,563
11,396
30,060
37,298
293,323
29,582
58,844
2,840
16,047
2,307
627,018
702
(636)
(86)
(1,280)
(15,853)
36,890
131,137
(31,938)
118,936
5262
751,216
11%
7%
3~iJ
2%

38%
1%
10%
0%
11%
2%
15%
0%
0%
100%
8?t~
3%
2%
0%
3%
5%
8%
42%
5%
12%
0%
0%
0%
100%
0%
1%

1%
0%
-1%
-17%
27%
117%
-28%
100%
1%
100%
12%
7%
3%
2%
39%
1%
9%
0%
10%
2%
16%
0%
0%
100%
23%
3%

2%
0%
2%
5%
7%
41%
5%
12%
0%
0%
0%
100%
0%
1%
0%
0%
-1%
-20%
29%
118%
-27%
100%
0%
100%
11%
6%
2%

2%
41%
1%
9%
o~'O
9%
1%
13%
5%
1%
100%
19%
2%
2%
0%
2%
5%
6%
47%
5%
9%
0%
3%
0%
100%
0%
1%

-1%
0%
-1%
-13%
31%
110%
-27%
100%
1%
100%
~
~
d!
~
~~v~
REVENUES
Sales of Goods tl'1~'~ '~ 62,991 66,875
Sales of Services
Othcr Income
GECS earnings from continuing onerahons
GECS revcnues from services
Total Revenue

1~~ 27,158 2,563
.), .~pf~ .<A>·44~47
~' ,.~ _' ~ 147,359
27,648
5,064
47,701
147,288
39,625
1,151
48,623
150,211
~% FlU?o ,(;b;;
2% 3%.. 1% ~_---",==::::::- k,
~ O%_Q'YL' . ()
-'-:ro% " 32% ~~
100% 100% 100%
Cost & Expenses
Cost of Goods Sold
--t~
56,785 51,455 4(),005 t i~1o 35% 31%
Cost of Services Sold 17,525 16,823 25,708 12% 11% 17%
Interests and other Financial 12,508 14,528 15,983 8% 10%
11%
Investment contracts, insurance losses and insurancc benefits

2,857 2,912 3,012 2% 2% 2%
Provision for losses on financing receivables 3,891 3,951 7,191
3% 3% 5%
Othcr costs and expenses 36,387 37,362 38,104 25% 25% 25%
Total Costs & Expenses 129,953 127,031 136,003 88,19%
86,25% 90.54"1"
Period Ending .4krM'C-j~<~F~~'lt·· •••·.j)HP~,~,l(Jj)~~~~-
1~A12~~4i ••~ "
EARNINGS (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 17,406 20,257 14,208 11.81%
13.75% 9.46%
Benefit (provision) for income taxes (2,504) (5,738) (J ,(50) -
2% -4% -1%
EARNINGS FROM CONTINUING OPERATIONS 14,902
14,519 13,158 10.11 % 9.86% 8.76%
Earnings (loss) from discontinued operations, net oftaxes
(1,038) (76) (979) -1% 0% -1%
Net Earnings 13,864 14,443 12,179 9.41% 9.81% 8.11%
Less net earnings attributable to noneontrolling interests 223
292 535 0% 0% 0%
NET EARNINGS ATTRIBUTABLE TO THE COMPANY
13,641 14,151 11,644 9,26% 9.61% 7.75%
Preferred stock dividends declared (J ,(31) (30O) 0% -1% 0%

NET EARNINGS ATTRIBUTABLE TO GE COMMON
SHAREOWNERS 13,641 13,120 11,344 9.26% 8.91% 7.55%
. .
Nicole Henry
COMMON SIZE FINANCIAL STATEMENTS
When evaluating the financial statements it is necessary that the
component evaluation is
done for each statement. This component split allows the
contribution factor to be evaluated and
to understand how well the company is able to translate the
_con;f~~ents in~o performa;ce. Ttte'l ~"1"-
income slalement of the company 's evaluated I e c:m~C=-~s~ ~
from GEeS comprise ~he major ~~_~~_--r~~~~::~~-:::~~-" able
to cO,ver these:
product~ales, the costs of goods sO~COIl1prise the major costs
of the companG-?::: ~~e()y, 'K
been going up for the company in the last couple of periods and
the company will have to ensure .
that the producI sales reach economies of scale. I L.., ,lc.ll
vplA ~ ..~~~
. n(/~~~.b
Along with this, the financial reviews of the
compan~'sbook~eveal that the company

. . f h w6d)..J, £1 c.P ------fi . I . I / Th' h h 'd.• J' J'('-has a
major portIon 0 t e assets comprIse df)TIle financla rec a es. IS
means t at t ~ .-{......--
p~:;;= . "::~~.,, .. /J1A JN2N.-e.A.. (~ '--{ ~
company will have to ensure that th~a~les turnover reJluc~s and
does not translate into badct~>-lJl..
debts and assets. Along with this, the company's liabilities
comprise of the long term receivables ,#
... ,~-----------'-
and hence the company will have '1"0 turn the assets to
incorporate its payment structure.
Gross Margin Ratio
Operating Margin Ratio
(
Pr It Margin
0
ROA'
'Current Ratio
If
'~ Quick Ratio
Cash Ratio
Debt Ratio
.............'
DS

urn on Invested Ca ital
De t to Equity Ratio
Interest Coverage Ratio
fEP~
, '. 1
Payffilt Ratio
Dividend Cover
I ~~~
lJV
2012
49.57%
11.81%
9.26%
11.09%
1.99%
1.12
1.02
0.87
0.81
72.97
1.09%
4.53
2.39
1.35
2.08%
47.97

2011
53.64%
13.75%
9.61%
12.15%
1.97%
0.91
0.84
0.72
0.84
69.48
12.15%
5.15
2.39
1.24
2.27%
44.06
2010
1
Liquidity
Liquidity
0.78 Liquidity
0.83 Solvency
67.00 AU & Effi

9.79%~
5.27 vency
1.89 Solvency
1.18 Financial Mkt
2.38% Financial Mkt
41.93 Financial Mkt
tJ reo Co ~ rz5
J~~
"-~
1~ --v6 0oY
l,UoJL~~.
0'V'
Nicole Henry
FINANCIAL RATIO ANALYSIS Il
. ' .J
Company financial performance is ofte integrated by
stakeholders in the bottom line.
This requires that the company indicates strong performance in
the financial perspective keeping
/f.
the ~ntrols and setting the strategic direction to increase
revenues. However, for

stakeholder management it is integral that the actual
performance is reported instead of inflated
performance. This ensures that the real picture is communicated
to ensure that the investment
decision by the stakeholders is in the right direction.
~ -~--,/
-1A .• , ~~ ,r-J~,,"~s~~·t~~
Gross Profit Margin , J.MJ U ~ I, ~ 'PO,A'" CDS' ,~
ilAJY'..
)"U v--- . '1,; ~ rfl" D.-"<v~ -
The basic dimension where an investor eyes the company is this
ratio." This is p~~ily-
the actual scenario which depicts how well the company's
product is moving in the market. The
real picture is covered from the company's cost of goods sold
and the revenues generated from
the base (Drake, Fabozzi, 2010). Th~ financial figures reveal
that for GEthe pe10~I1fe duriqg 1 j
(t -OWCW vvk",,~ cZtilt ~ ,?Yc{()..Ab ,/t6-tk.t~~~
w taking a set down where the companlwas able to generate
over 50% in its
-
J J V
-:L dA~1'~.,-...u Gt.- sotd~t.l o .. ~ Q..o .............'¥'-~
sales of financial assets w . ch have slowed down over the

period. This decrease in the sales of ~
financial assets and other income from subsidiary portions has
impacted the decrease in
profitability position of the company.
t last decade is
gross profits. However, the company has taken a dip primarily
because the costs of products over
-
the period have inc~impacting the actual position of the
profitability of the
company. The evident change in the company's sales is visibltt
fre~ t?e drift in the chan.se in
Nicole Henry
Net Profit Margin
For any organization the bottom line is the key to the future
successes. The net income
ratio indicates how well the efforts and strategy of the company
is working to be able to charge a
premium from the market. The stronger the position of the
company, the greater is the
management and stakeholders in the position to take risks.
Without the company showing

stability and growth in the profitability, the future risks will
have to be hedged. The growths in
the net profit ratio of the company from below 8% to well over
125 basis points indicate that the
company is seeking growth with controlled risk factions taken.
This means that the company will
be able to take greater risks in the current position. This is
primarily because the company has ~¥
been able to control the cost factions of the company and has
diverted more of the effortt0 " y'" /1,
towards investing into getting the goods and services to the
markets. ~~~~
~
Operating Profit Margin
The operating profits define how well the company is able to
utilize the operational
activities within the company to translate the product into sales.
With products and services both
integrated into one line of business, it is evident that the
challenge will continue to persist in
developing operating profits (Lundholm, Sloan, 2012). This is
primarily because the profitability
driven in the services sector is based on the square units of
space being occupied while the
product sales remain the key parameter for the businesses in

product lines. However, when
analyzing General Electric, it is visible that the company's
operating margins continued to
flourish. Although in double digit growth, the operating margins
have also seen a set off in the
current period.
~
sales to ensure that t e Du Pont rati
~
Nicole Henry
Return on Equity (ROE)
Investment into a company done by a stakeholder is only on the
premise that the client
expects to generate an anticipated rate or return or probably
higher. These expectations set forth
by the investor sets the drive and the target for the company.
This belief by the investor has to
translate into how the company drives the strategy. This has to
be set forth in a manner that the
company exceeds the budget settings of the stakeholders. For a
company with such global

presence and strong product lines, the achievement to the
stakeholder expectations is important. L.lfV-
This has been visible in the last three years where the company
has b~able to ~ase the ~~~
return to its investors into the double digit numbers. However,
his grilling of performance is ~ ..,
visible where the company grew to over 12% of return on its
invested equity which has taken off ~
I .A. J v.)~ci,~~--6 ~+
a settling in the current per~ to just over the 11 % mark. W
~u::*t o-. '-1.O.L ~S('ffi ~
N V~01t1-l StDc'f:-0A~
---V (,v1' b~~~ fI' J,~
Return on Assets (Du Pont Ratio) ......-r- Sl.:ct d ylY.l ~~ .l ~
0 LVI' C Vh~~ ():.
The invested capital in a company is utilized into developing
assets for th~ company.
These asset build ups are the key parameters which build up to
the future revenue generation.
These assets have to be the levers which will grow the
organization in terms of revenue and the
expectations set forth by the stakeholders. When we review the
volumetric figures of the
company, the performance ofjust around 2% return on assets
would appear to be substantially

low. However, the industry average has been substantially low.
Comparing to the overall (5-v...~-hu-~
industry is not feasible primarily because of the diversified
business portfolio that the company ~~
maintains. This holds high that the company has been able to
raise the bar for performance ofth~ --t'W
the company will have to increase the revenue per product and
.l-.()
~0)"e.A.." v-l "
goes up. . . ~~~~ ,
~~~ ~~ ':.. ,3; ~Dl '" ~.~
'1tfA- .~~- ~c: U) ~ '7. '
~ r~~~tlJ{ CJf ~J ,
~~ )'VV' ""'-
~ : J...<fV'-~cole Henry ;;"
J,*oV-'{"'cf,srfl'~ F
Curren! Ra!io Ir...V-j)~ ~f
Liquidity is a key parameter which is a point of confern for
large organizatiorP In general
situations, it is the key parameter that the company is evalJated
on. When the analysis is done,

the figures for performance of profitability may appear to be
exciting for stakeholders; however,
the actual performance may appear to be weak due to reduced
liquidity. The consideration for
growth requires that the company may move forward to
continue credit sales, This will mean that r "
i ,.l·
the liquidity for the company may become a pressing issue and
reduce the actual position of the r'VV'
company (Bodie, Kane, Marcus, 2011). When evaluating the
position of General Electric, the
""7.....,
liquidity position was considered to be weak during t e flowing
period; wever, over the period
the company has been able to raise the bar to over 1. This
means that with the current assets in
hand the company will be able to payoff the current debts that
the company holds. ~
7 . ~- /JY'. -iu~~
~ J.-1v-1" ~. I'"nn W .
Inventory Turnover Ratio -- v >-T v
or any organization, it is necessary that the company moves its
assets continU~IY. '7L ovl<.-t1-P
~A~~U .~'S-~-' tJ.' Sf. u..~4
Without t assets inventory in a stagnant position, the worry for
the comp9ny ~ill incnGse. r

cause the assets of the company would be in a stagnant position
and the product would have
become stale. The company cannot carry stale products on its
assets line because this would
show an inflated asset book which would actually not reap any
returns. Slow moving inventory
indicates that the company will have to review the product line
within the market and address the
needs of the market urgently. Without the right kind of review,
the organization will not be able
to identify and strategize the products concurrently. Often there
is a situation pressed with the
company where the product is well ahead of the time to market.
Keeping this situation, the
Nicole Henry
organization may not be able to generate sales and will have to
let go of the innovation used.
However, in a situation where the organization is in a product
and service industry, it has to
ensure that the product sales do compliment the services that
the company offers and vice versa.
Specifically in a financial assets market, the products have
tended to move slowly since the

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