Financial Analysis General Electric

FinancialAnalysis: General Electric

FinancialAnalysis: General Electric

Infinancial analysis, there are various areas of performance of acompany that needs to be scrutinized. Profitability growth,management of the operational costs and the wholesome growth inwealth of the shareholders are some of the pertinent areas that needto be addressed in details. For this reason, the financial soundnessof a company can be determined through a thorough analysis of thefinancial statements that are deemed to be quite substantial inmaking sure that the financial position of the company is realized.This study takes a look at the General electric company’s financialperformance into perspective. In specific terms it shall look intothe organizational context of the company with keen concern on theproducts and services it deals in, the management of the company andits formidability in steering the activities of this company forward.Additionally, the research takes a retrospective approach to theanalysis of the recent financial statements with a view tounderstating its financial soundness.

Companybackground

Generalelectric is one of the multinational companies that deal in a varietyof products and services. These products range from the oil, water,power appliances, healthcare aviation, transportation energymanagement, medical services, and financial services among others. The company was incorporated in New York in the year 1892. Thecompany is deemed to be listed in the New York stock exchange and isclassified as a conglomerate. It has its headquarters at Fairfield,Connecticut, united states. The company recorded a high operatingincome of about $ 8.19 Billion in the year 2015 with net revenue of $117. 4 Billion. The conglomerate currently has over 300,000employees who are determined to bring high level of efficiency in themanagement of the company. Furthermore, the corporation has numeroussubsidiaries which are spread across the world with keen attention ofmeeting the objective of the firm. The next discussion gives afinancial analysis of the company with keen attention on the realfinancial position of the same.

Financialanalysis

Liquidity

Liquidityratios give an incisive report on the way in which the companymanages its liquid cash. This analysis is very critical for themaintenance of money for meeting the immediate needs of the businessand seeing it that the opportunity cost of holding cash at one pointin the company is always. The ratios that have been used here arecash ratio, the acid test ratio, and the current ratio. The graphbelow shows the real statistics of these three parameters for theGeneral Electric Company and the comparison with the industry aswell.

Chart1.0 Liquidity Ratios

Acloser look at the graph reveals that the current ratio has beenincreasing since the year 2012. The required current ratio should be1.0. From the chart, it is very evident that the current ratio forthe company is a right stance because all the current ratios for thefour years are seen to higher than 1.0.additionally, it is imperativeto note that the corporation is deemed to be enough liquid in itsoperations. This liquidity means that the company has enough cash onhand to meet the immediate needs of the company. The acid test ratioalso reveals that the company is indeed on the high stance of makingsure that the company utilized its cash in the most appropriate waypossible. The industry average is supposed by the company quick ratioin the recent years (2015 and 2014). This range shows that the firmhas been keen in ensuring that it brings the notion of financialliquidity up to speed in the recent years. Looking at the flow ofcash using the cash flow ratio we see that the company is still doingvery well. It is important to note that when calculating the cashratio, we inculcated the notion of the marketable securities becauseit is possible that we could liquidate these assets as soon as thecompany needs as long as the opportunity cost is not high.

Takinga look at the company average about those of the enterprise we seethat the firm is on the right track as it is just above the companyin the latest year of analysis (2015). With a current ratio of 1.6 inthe year 2015 for the company, one can conclude that for every unitamount of liability that the company might owe the creditors thecompany has 1.6 units of the assets at its disposal to offset thedebt in question. In this prospect, it gives the creditors moreconfidence to give the company more credit since we are sure fromthis analysis that the firm can meet its immediate financial needs inthe most appropriate ways possible using the current assets that areat its disposal. Furthermore, the acid test ratio that excludes thestocks still shows high strength in the management of liquid cash.From this analysis, it is evident that the company has efficientlymanaged its liquidity and therefore the liquidity soundness is up todate.

Asset Management

Inthis area, it is important to look at the way in which the companyhas managed its assets. The property of the enterprise is very vitalsince they are the drivers for which the company would use in makingsure that the revenue is realized. The realization of the incomewill be revealed in many aspects of our analysis. These aspects canbe in terms of looking at the rate at which the company utilizes itsstocks and the profitability of each stock among others. Here wetake a look at the various ratios such as the inventory turnover, thefixed asset turnover, the average collection period and the totalasset turnover. The graphs that outline the comparison of the ratiosare as shown below.

Chart2.1 Asset Management

Fromthe chart above, the fixed asset turnover stands at 0.45 in 2015. This numerical show that the earnings that are got per unit of fixedasset invested are 0.45. This figure has been dropping since the year2012. The reduction is attributed to the various cuts in theprofitability in the company as the operational costs increase. Thecompany has since made it very clear that it needs to improve in themeans and ways of making sure that the operational expenses arereduced. In comparison with the industry average, the company is inthe production range since the sector range stands at 0.46 while thatof the company in the latest year is 0.45 (Bernstein,&amp Maksy, 2010). This figures show that the company is still financially soundregarding making sure that it is on the competitive edge. On theaccount of the Total asset turnover, the company is doing poorly onthis stance and hence there is a need to bring on board the advent ofmaking sure that it beefs up its skills of producing efficiently andcost effectively to increase this turnover. The graph below shows thetrend on the days the company takes to collect its debts.

Graph2.1.0 Debt Collection period

Theaverage days approximated for the collection of debts for the companyis seen to be quite. For example in the year 2015, the company hasdebt collection period of over 800 days. This period clearly showsthat the company needs to review its debt collection policiesimmediately. Additionally, it should be noted that the industrycollection average stands at 365 days which is equivalent to 1 yearfor the short term debts. This figure is quite lower than thosedepicted by General Electric over the years. The graph below nowshows the inventory turnover that connotes how frequent the companyuses the stocks.

The profitabilityanalysis

Profitability analysis entailsthe scrutiny of the enterprise regarding the amount of gain that thecompany brings to its owners regarding profits and various proceedsfrom the same. The pertinent financial ratios that have been usedhere are the net profit margin, the operating profit margin, thereturn on asset, the return on equity, and the gross profit margin.The summary of these calculations has been expressed in the graphbelow.

Graph4.1 Profitability graph

Looking at the gross profitmargin in the financial year 2015, the company showed a high grossprofit. This indeed was an indication of positive improvement ascompared to what was registered in the year 2014. The average for theindustry is 27.5%, a figure that is slightly lower in comparison tothat of General Electric Company. The net operating profit asindicated points to strong stand in regards to profits made. The netprofits stand at approximately 17% to 48%. Looking at the range, itcan be said to be good enough. This means that area in which thecompany operates is very promising in regards to the profits. Thisfact is due to high net profit margin which is somehow highercompared to the values that are portrayed in the industry.

Conclusion

In a nutshell, the company isseen to have a high financial standing which has helped it to be onthe competitive edge. The profitability is deemed to be quitesubstantial which depicts good management of the conglomerate.

References

Bernstein,L. A., &amp Maksy, M. M. (2010). Casesin financial statement reporting and analysis.Homewood, Ill: Irwin.

Peterson,P. P., &amp Fabozzi, F. J. (2012). Analysisof Financial Statements.Hoboken: John Wiley &amp Sons.

Taparia,J. (2013). Understandingfinancial statements: A journalist`s guide.Oak Park, IL: Marion Street Press.

APPENDICES

STATEMENTOF FINANCIAL POSITION

General Electric Company

and consolidated affiliates

At December 31 (In millions, except share amounts)

2015

2014

Assets

$

70,483

$

70,025

Cash and equivalents

Investment securities (Note 3)

31,973

35,505

Current receivables (Note 4)

27,022

23,237

Inventories (Note 5)

22,515

17,689

Financing receivables net (Note 6)

12,052

13,445

Other GE Capital receivables

6,782

6,261

Property, plant and equipment net (Note 7)

54,095

48,070

Receivable from GE Capital (debt assumption)

Investment in GE Capital

Goodwill (Note 8)

65,526

53,207

Other intangible assets net (Note 8)

16,744

13,182

Contract assets (Note 9)

21,156

16,960

All other assets (Note 9)

37,471

24,836

Deferred income taxes (Note 14)

3,105

6,183

Assets of businesses held for sale (Note 2)

2,818

2,826

Assets of discontinued operations (Note 2)

120,951

323,529

Total assets(a)

$

492,692

$

654,954

Liabilities and equity

Short-term borrowings (Note 10)

$

49,892

$

70,425

Accounts payable, principally trade accounts

13,680

12,067

Progress collections and price adjustments accrued

15,776

12,537

Dividends payable

2,167

2,317

Other GE current liabilities

23,597

14,323

Non-recourse borrowings of consolidated securitization entities (Note 10)

3,083

4,403

Long-term borrowings (Note 10)

145,301

186,596

Investment contracts, insurance liabilities and insurance annuity benefits (Note 11)

25,692

27,432

Non-current compensation and benefits

40,487

42,238

All other liabilities (Note 13)

22,558

16,511

Liabilities of businesses held for sale (Note 2)

861

941

Liabilities of discontinued operations (Note 2)

46,487

128,233

Total liabilities(a)

389,582

518,023

Redeemable noncontrolling interests (Note 15)

2,972

98

Preferred stock (5,944,250 shares outstanding at year-end 2015

6

and no shares outstanding at year-end 2014)

GECC preferred stock (no shares outstanding at year-end 2015

and 50,000 shares outstanding at year-end 2014)

Common stock (9,379,288,000 and 10,057,380,000 shares outstanding

702

702

at year-end 2015 and 2014, respectively)

Accumulated other comprehensive income (loss) net attributable to GE(b)

460

1,013

Investment securities

Currency translation adjustments

(5,499)

(2,428)

Cash flow hedges

(80)

(180)

Benefit plans

(11,410)

(16,578)

Other capital

37,613

32,889

Retained earnings

140,020

155,333

Less common stock held in treasury

(63,539)

(42,593)

98,274

128,159

Noncontrolling interests(c) (Note 15)

1,864

8,674

Total equity (Note 15 and 16)

100,138

136,833

Total liabilities, redeemable noncontrolling interests and equity

$

492,692

$

654,954

STATEMENTOF FINANCIAL POSITION (CONTINUED)

GE(a)

Financial Services (GE Capital)

At December 31 (In millions, except share amounts)

2015

2014

2015

2014

Assets

Cash and equivalents

$

10,372

$

15,916

$

60,111

$

54,109

Investment securities (Note 3)

151

84

31,827

35,425

Current receivables (Note 4)

14,707

11,513

Inventories (Note 5)

22,449

17,639

66

50

Financing receivables – net (Note 6)

25,003

25,647

Other GE Capital receivables

15,865

13,848

Property, plant and equipment net (Note 7)

20,145

17,207

34,781

31,253

Receivable from GE Capital (debt assumption)(b)

85,114

Investment in GE Capital

46,227

82,549

Goodwill (Note 8)

63,157

51,526

2,370

1,680

Other intangible assets net (Note 8)

16,312

12,984

435

202

Contract assets (Note 9)

21,156

16,960

All other assets (Note 9)

13,281

7,722

25,287

17,445

Deferred income taxes (Note 14)

7,666

8,772

(4,561)

(2,590)

Assets of businesses held for sale (Note 2)

2,818

2,805

Assets of discontinued operations (Note 2)

9

9

120,942

323,520

Total assets

$

323,562

$

245,686

$

312,125

$

500,589

Liabilities and equity

Short-term borrowings (Note 10)(b)

$

19,799

$

3,872

$

48,650

$

67,416

Accounts payable, principally trade accounts

19,250

16,511

1,745

1,905

Progress collections and price adjustments accrued

15,776

12,550

Dividends payable

2,167

2,317

Other GE current liabilities

23,595

14,322

Non-recourse borrowings of consolidated securitization entities (Note 10)

3,083

4,403

Long-term borrowings (Note10)(b)

83,770

12,468

129,062

174,174

Investment contracts, insurance liabilities and insurance annuity benefits

26,155

27,881

Non-current compensation and benefits

39,472

41,494

1,006

734

All other liabilities (Note 13)

15,573

11,429

9,351

5,583

Liabilities of businesses held for sale (Note 2)

1,409

1,504

Liabilities of discontinued operations (Note 2)

128

137

46,359

128,096

Total liabilities

220,938

116,604

265,411

410,191

Redeemable noncontrolling interests (Note 15)

2,972

98

Preferred stock (5,944,250 shares outstanding at year-end 2015)

6

6

and no shares outstanding at year-end 2014)

GECC preferred stock (no shares outstanding at year-end 2015

and 50,000 shares outstanding at year-end 2014)

Common stock (9,379,288,000 and 10,057,380,000 shares outstanding

702

702

at year-end 2015 and 2014, respectively)

Accumulated other comprehensive income (loss) – net attributable to GE

460

1,013

456

1,010

Investment securities

Currency translation adjustments

(5,499)

(2,428)

(898)

(839)

Cash flow hedges

(80)

(180)

(112)

(172)

Benefit plans

(11,410)

(16,578)

(540)

(577)

Other capital

37,613

32,889

12,326

32,999

Retained earnings

140,020

155,333

34,988

55,077

Less common stock held in treasury

(63,539)

(42,593)

Total GE s

98,274

128,159

46,227

87,499

Noncontrolling interests (Note 15)

1,378

825

486

2,899

Total equity (Notes 15 and 16)

99,651

128,984

46,713

90,398

Total liabilities, redeemable noncontrolling interests and equity

$

323,562

$

245,686

$

312,125

$

500,589

STATEMENTOF EARNINGS

General Electric Company

and consolidated affiliates

For the years ended December 31 (In millions per-share amounts in dollars)

2015

2014

2013

Revenues and other income

Sales of goods

$

74,510

$

76,568

$

71,873

Sales of services

31,298

30,190

28,669

Other income (Note 17)

2,227

778

3,107

GE Capital earnings from continuing operations

GE Capital revenues from services

9,350

9,648

9,595

Total revenues and other income

117,386

117,184

113,245

Costs and expenses (Note 26)

Cost of goods sold

59,905

61,257

57,867

Cost of services sold

22,788

22,447

21,974

Selling, general and administrative expenses

17,831

16,848

17,945

Interest and other financial charges

3,463

2,723

2,870

Investment contracts, insurance losses and

insurance annuity benefits

2,605

2,530

2,661

Other costs and expenses

2,608

1,115

828

Total costs and expenses

109,200

106,921

104,145

Earnings from continuing operations

before income taxes

8,186

10,263

9,100

Benefit (provision) for income taxes (Note 14)

(6,485)

(773)

(1,219)

Earnings from continuing operations

1,700

9,490

7,881

Earnings (loss) from discontinued operations,

net of taxes (Note 2)

(7,495)

5,855

5,475

Net earnings (loss)

(5,795)

15,345

13,355

Less net earnings (loss) attributable to noncontrolling interests

332

112

298

Net earnings (loss) attributable to the Company

(6,126)

15,233

13,057

Preferred stock dividends

(18)

Net earnings (loss) attributable to GE common shareowners

$

(6,145)

$

15,233

$

13,057

Amounts attributable to GE common shareowners

Earnings from continuing operations

$

1,700

$

9,490

$

7,881

Less net earnings (loss) attributable to

noncontrolling interests, continuing operations

19

(45)

262

Earnings from continuing operations attributable

to the Company

1,681

9,535

7,618

Preferred stock dividends

(18)

Earnings from continuing operations attributable

to GE common shareowners

1,663

9,535

7,618

Earnings (loss) from discontinued operations, net of taxes

(7,495)

5,855

5,475

Less net earnings (loss) attributable to

noncontrolling interests, discontinued operations

312

157

36

Net earnings (loss) attributable to GE common shareowners

$

(6,145)

$

15,233

$

13,057

Per-share amounts (Note 18)

Earnings from continuing operations

Diluted earnings per share

$

0.17

$

0.94

$

0.74

Basic earnings per share

$

0.17

$

0.95

$

0.74

Net earnings (loss)

Diluted earnings (loss) per share

$

(0.61)

$

1.50

$

1.27

Basic earnings (loss) per share

$

(0.62)

$

1.51

$

1.28

Dividends declared per common share

$

0.92

$

0.89

$

0.79

STATEMENTOF EARNINGS (CONTINUED)

For the years ended December 31

GE(a)

Financial Services (GE Capital)

(In millions per-share amounts in dollars)

2015

2014

2013

2015

2014

2013

Revenues and other income

Sales of goods

$

74,565

$

76,715

$

71,951

$

79

$

121

$

126

Sales of services

31,641

30,594

29,063

Other income (Note 17)

2,165

707

2,886

GE Capital earnings from continuing operations

(7,672)

1,532

699

GE Capital revenues from services

10,722

11,199

11,141

Total revenues and other income

100,700

109,546

104,599

10,801

11,320

11,267

Costs and expenses (Note 26)

Cost of goods sold

59,970

61,420

57,962

69

104

108

Cost of services sold

20,858

20,456

19,668

2,273

2,394

2,700

Selling, general and administrative expenses

14,914

14,972

16,104

3,512

2,689

2,550

Interest and other financial charges

1,706

1,579

1,333

2,301

1,638

2,021

Investment contracts, insurance losses and

insurance annuity benefits

2,737

2,660

2,764

Other costs and expenses

2,647

1,159

856

Total costs and expenses

97,447

98,427

95,068

13,539

10,645

10,999

Earnings (loss) from continuing operations

before income taxes

3,252

11,119

9,531

(2,739)

676

268

Benefit (provision) for income taxes (Note 14)

(1,506)

(1,634)

(1,667)

(4,979)

861

448

Earnings (loss) from continuing operations

1,746

9,485

7,864

(7,718)

1,537

716

Earnings (loss) from discontinued operations,

net of taxes (Note 2)

(7,807)

5,698

5,439

(7,485)

5,860

5,540

Net earnings (loss)

(6,061)

15,182

13,303

(15,202)

7,397

6,256

Less net earnings (loss) attributable to noncontrolling interests

83

(50)

245

248

162

53

Net earnings (loss) attributable to the Company

(6,145)

15,233

13,057

(15,450)

7,234

6,204

Preferred stock dividends

(330)

(322)

(298)

Net earnings (loss) attributable to GE common shareowners $

(6,145)

$

15,233

$

13,057

$

(15,780)

$

6,912

$

5,906

Amounts attributable to GE common shareowners:

Earnings (loss) from continuing operations

$

1,746

$

9,485

$

7,864

$

(7,718)

$

1,537

$

716

Less net earnings (loss) attributable to

noncontrolling interests, continuing operations

83

(50)

245

(64)

5

17

Earnings (loss) from continuing operations attributable

1,663

9,535

7,618

(7,654)

1,532

699

to the Company

Preferred stock dividends

(330)

(322)

(298)

Earnings (loss) from continuing operations attributable

to GE common shareowners

1,663

9,535

7,618

(7,983)

1,209

401

Earnings (loss) from discontinued operations, net of taxes

(7,807)

5,698

5,439

(7,485)

5,860

5,540

Less net earnings (loss) attributable to

noncontrolling interests, discontinued operations

312

157

36

Net earnings (loss) attributable to GE common shareowners $

(6,145)

$

15,233

$

13,057

$

(15,780)

$

6,912

$

5,906

STATEMENTOF CASH FLOWS

General Electric Company

and consolidated affiliates

For the years ended December 31 (In millions)

2015

2014

2013

Cash flows operating activities

Net earnings (loss)

$

(5,795)

$

15,345

$

13,355

Less net earnings (loss) attributable to noncontrolling interests

332

112

298

Net earnings (loss) attributable to the Company

(6,126)

15,233

13,057

(Earnings) loss from discontinued operations

7,495

(5,855)

(5,475)

Adjustments to reconcile net earnings attributable to the

Company to cash provided from operating activities:

Depreciation and amortization of property,

plant and equipment

4,847

4,953

5,202

Earnings from continuing operations retained by GE Capital

Deferred income taxes

383

(882)

(3,540)

Decrease (increase) in GE current receivables

(52)

(1,913)

(485)

Decrease (increase) in inventories

(314)

(872)

(1,368)

Increase (decrease) in accounts payable

(541)

565

442

Increase (decrease) in GE progress collections

(996)

(515)

1,892

All other operating activities

7,160

5,318

4,672

Cash from (used for) operating activities continuing operations

11,856

16,033

14,398

Cash from (used for) operating activities discontinued operations

8,034

11,676

14,112

Cash from (used for) operating activities

19,891

27,709

28,510

Cash flows investing activities

Additions to property, plant and equipment

(7,309)

(7,134)

(6,754)

Dispositions of property, plant and equipment

3,020

2,923

2,716

Net decrease (increase) in GE Capital financing receivables

1,043

1,260

2,151

Proceeds from sale of discontinued operations

79,615

232

528

Proceeds from principal business dispositions

2,283

630

1,818

Proceeds from sale of equity interest in NBCU LLC

16,699

Net cash from (payments for) principal businesses purchased

(12,027)

(2,091)

(8,026)

All other investing activities

(5,013)

23,410

35,027

Cash from (used for) investing activities continuing operations

61,613

19,229

44,159

Cash from (used for) investing activities discontinued operations

(2,125)

(24,263)

(15,042)

Cash from (used for) investing activities

59,488

(5,034)

29,117

Cash flows financing activities

Net increase (decrease) in borrowings (maturities of

90 days or less)

(24,459)

(6,409)

(14,048)

Newly issued debt (maturities longer than 90 days)

13,951

14,629

38,356

Repayments and other reductions (maturities longer than 90 days)

(47,038)

(38,410)

(53,624)

Proceeds from issuance of GE Capital preferred stock

990

Net dispositions (purchases) of GE shares for treasury

(1,099)

(1,218)

(9,278)

Dividends paid to shareowners

(9,295)

(8,852)

(7,821)

All other financing activities

(1,605)

(652)

(1,388)

Cash from (used for) financing activities continuing operations

(69,547)

(40,912)

(46,813)

Cash from (used for) financing activities discontinued operations

(6,507)

23,956

1,238

Cash from (used for) financing activities

(76,054)

(16,956)

(45,575)

Effect of currency exchange rate changes on cash and equivalents

(3,464)

(3,492)

(795)

Increase (decrease) in cash and equivalents

(138)

2,224

11,258

Cash and equivalents at beginning of year

91,017

88,792

77,533

Cash and equivalents at end of year

90,879

91,017

88,792

Less cash and equivalents of discontinued operations

at end of year

20,395

20,991

9,617

Cash and equivalents of continuing operations at end of year

$

70,483

$

70,025

$

79,173

Supplemental disclosure of cash flows information

Cash paid during the year for interest

$

(9,558)

$

(9,560)

$

(8,988)

Cash recovered (paid) during the year for income taxes

(2,486)

(2,955)

(2,487)

STATEMENTOF CASH FLOWS (CONTINUED)

GE(a)

Financial Services (GE Capital)

For the years ended December 31 (In millions)

2015

2014

2013

2015

2014

2013

Cash flows operating activities

Net earnings (loss)

$

(6,061)

$

15,182

$

13,303

$

(15,202)

$

7,397

$

6,256

Less net earnings (loss) attributable to noncontrolling interests

83

(50)

245

248

162

53

Net earnings (loss) attributable to the Company

(6,145)

15,233

13,057

(15,450)

7,234

6,204

(Earnings) loss from discontinued operations

7,807

(5,698)

(5,439)

7,485

(5,860)

(5,540)

Adjustments to reconcile net earnings attributable to the

Company to cash provided from operating activities:

Depreciation and amortization of property,

plant and equipment

2,473

2,508

2,449

2,436

2,529

2,754

Earnings from continuing operations retained by GE Capital(b)

12,284

1,625

5,321

Deferred income taxes

(1,800)

(476)

(2,571)

2,183

(406)

(969)

Decrease (increase) in GE current receivables

666

(473)

(1,432)

Decrease (increase) in inventories

(282)

(877)

(1,351)

(14)

27

33

Increase (decrease) in accounts payable

276

884

809

(189)

258

155

Increase (decrease) in GE progress collections

(1,010)

(528)

1,919

All other operating activities

2,083

2,973

1,492

5,087

2,480

2,596

Cash from (used for) operating activities continuing operations

16,354

15,171

14,255

1,537

6,263

5,232

Cash from (used for) operating activities discontinued operations

(12)

(2)

(2)

8,046

11,678

14,113

Cash from (used for) operating activities

16,342

15,169

14,253

9,583

17,941

19,345

Cash flows investing activities

Additions to property, plant and equipment

(3,785)

(3,970)

(3,680)

(4,237)

(3,818)

(3,274)

Dispositions of property, plant and equipment

939

615

381

2,526

2,331

2,335

Net decrease (increase) in GE Capital financing receivables

226

(161)

3,022

Proceeds from sale of discontinued operations

79,615

232

528

Proceeds from principal business dispositions

1,725

602

1,316

532

477

Proceeds from sale of equity interest in NBCU LLC

16,699

Net cash from (payments for) principal businesses purchased

(10,350)

(2,091)

(8,026)

(1,677)

All other investing activities

(1,308)

(1,062)

(1,868)

(4,690)

24,574

35,756

Cash from (used for) investing activities continuing operations

(12,779)

(5,906)

4,822

72,295

23,158

38,844

Cash from (used for) investing activities discontinued operations

12

2

2

(2,137)

(24,263)

(15,043)

Cash from (used for) investing activities

(12,767)

(5,905)

4,823

70,158

(1,105)

23,801

Cash flows financing activities

Net increase (decrease) in borrowings (maturities of

90 days or less)

603

243

949

(24,834)

(7,078)

(13,710)

Newly issued debt (maturities longer than 90 days)

3,560

3,084

512

10,391

11,545

37,852

Repayments and other reductions (maturities longer than 90 days)

(2,190)

(323)

(5,032)

(44,848)

(38,087)

(48,592)

Proceeds from issuance of GE Capital preferred stock

990

Net dispositions (purchases) of GE shares for treasury

(1,099)

(1,218)

(9,278)

Dividends paid to shareowners

(9,289)

(8,851)

(7,821)

(4,620)

(3,322)

(6,283)

All other financing activities

203

346

(212)

(1,362)

(679)

(878)

Cash from (used for) financing activities continuing operations

(8,211)

(6,719)

(20,881)

(65,273)

(37,621)

(30,621)

Cash from (used for) financing activities discontinued operations

(6,507)

23,956

1,239

Cash from (used for) financing activities

(8,211)

(6,719)

(20,881)

(71,780)

(13,665)

(29,382)

Effect of currency exchange rate changes on cash and equivalents

(908)

(312)

(22)

(2,556)

(3,180)

(773)

Increase (decrease) in cash and equivalents

(5,544)

2,234

(1,827)

5,406

(9)

12,991

Cash and equivalents at beginning of year

15,916

13,682

15,509

75,100

75,109

62,118

Cash and equivalents at end of year

10,372

15,916

13,682

80,506

75,100

75,109

Less cash and equivalents of discontinued operations

at end of year

20,395

20,991

9,617

Cash and equivalents of continuing operations at end of year

$

10,372

$

15,916

$

13,682

$

60,111

$

54,109

$

65,492

Supplemental disclosure of cash flows information

$

(1,204)

$

(1,215)

$

(1,132)

$

(8,884)

$

(8,910)

$

(8,146)

Cash paid during the year for interest

Cash recovered (paid) during the year for income taxes

(1,636)

(1,337)

(4,753)

(850)

(1,618)

2,266

CATEGORIES OF RATIOS

THE FINANCIAL RATIO CALCULATIONS

2015

2014

2013

2012

Industry Average

LIQUIDITY RATIOS

Current Ratio

current assets /current liabilities

15,972,973/10,030,702

1.592

1.543

1.146

1.036

1.500

Acid test/quick ratio

(current assets-inventories)/current liabilities

(15,972,973-329,406)/10,030,702

1.56

1.47

0.98

0.93

1.200

Cash Ratio

(cash +marketable securities)/current liabilities

(6, 259,754+122,973)/10,030,702

0.64

0.39

0.21

0.16

0.450

ASSET MANAGEMENT RATIOS

2015

2014

2013

2012

Industry Average

Average collection period

Receivables/ (annual credit sales/365)

4,938,317/(2,063,493/365)

874

1,075

1,551

537

365.000

Inventory Turn over

cost of goods sold/average inventory

2,379,616/(329,406/2)

14.448

10.673

2.058

9.957

5.000

Fixed Asset Turnover

sales/average Net fixed assets

4,585,340/(20,167,703/2)

0.455

0.669

0.551

1.394

0.500

Total Asset Turnover

Sales/Average Total Assets

4,585,340/(36,140,676/2)

0.254

0.340

0.246

0.712

0.580

DEBT MANAGEMENT RATIOS

2015

2014

2013

2012

Industry Average

Debt ratio

Total debt /Total Assets

3,191,424/36,140,676

0.088

0.166

0.146

0.154

0.350

Debt -Equity Ratio

Total long term debt/Total Equity

2,790,080/20,287,728

0.138

0.264

0.178

0.433

0.450

Interest Cover

EBIT/Interest Expenses

2,105,361/23,073

91.248

57.487

110.046

55.404

25.000

PROFITABILITY RATIO

2015

2014

2013

2012

Industry Average

Gross profit Margin

(Gross profit)/sales

2,205,924/4,585,340

48.11%

23.18%

32.79%

28.39%

27.50%

Operating Profit Margin

EBIT/Sales

2,105,361/4,585,340

45.91%

27.39%

43.16%

15.17%

22.10%

Net profit Margin

Net Income/Sales

2,559,867/4,585,340

55.82%

34.60%

41.36%

11.76%

18.35%

Return on Asset

Net income + Interest expense) /average total assets

2,582,940/(36,140,676/2)

14.29%

11.92%

10.27%

8.56%

9.98%

Return on Equity

Net income /average common equity

2,559,867/(7,862,630/2)

65.11%

57.65%

56.60%

65.64%

50.89%

MARKET BASED &amp VALUATION RATIOS

2015

2014

2013

2012

Industry Average

Price Earnings ratio

Market price per share/Earning per share

2.72/0.323

8.4211

9.5775

8.0000

9.0667

12.4500

Earnings per Share

Net income/Number of shares

2,559,867/7,925,285

0.3230

0.2840

0.3400

0.3000

0.5000

Price: Book Value Ratio

Market price per share/book value per share

2.72/0.99

2.7417

2.7606

2.2641

2.9755

3.8900

Price : cash flow ratio

Market price per share/Cash flow per share

2.72/0.35

7.7827

8.7032

7.0240

6.8471

7.3400

Dividend Yield

(Dividend * 100)/Market Price per share

(0.0129*100)/2.72

0.4750

0.4176

0.5000

0.4412

0.5000

Dividend per Share

Total ordinary dividend/Number of shares

102,394.68/7,925,285

0.0129

0.0114

0.0136

0.0120

0.0540