General Electric Case - Financial Analysis of General Electric

Abstract

General Electric is one of the largest, diversified and powerful companies in the world with a heritage of more than 130 years of culture and sounding reputation. The company is well separated into 2 parts, manufacturing and financing. Each of the segments of General Electric has its own interesting aspect for economists to look into. This article reveals some of the accounting facts on General Electric, as well as provides comments on its operations.

General Electric

Financial Analysis of General Electric

Description of General Electric

General Electric is one of the largest and most diversified corporations in US. The product of General Electric ranges from turbine engine of aircrafts to one of those little household appliances we come across every day. General Electric also provides service business, from fleet management and leasing to financing portfolio to small and medium sized firms. Located in Chenectady, New York, General Electric is running business throughout the entire nation and is having joint ventures with a tremendous amount of international business globally. General Electric is serving customers in more than 100 countries and employs approximately 287,000 people worldwide. Its segments include Energy Infrastructure, Technology Infrastructure, NBC Universal, GE Capital and Home & Business Solutions (Annual Report, 2011). Through these segments, General Electric specialize the production, marketing and distributing a various range of power consumption and generation products, powering media includes nuclear, gas, wind and solar energy. Apart from meeting a huge phase of industrial production needs, General Electric also provides medical devices such as medical imaging equipment, magnetic resonance scanners, X ray scanner, etc. There is also an important role played by the General Electric in the aviation business. LLC, a company joinedly owned by General Electric and the Pratt && Whitney division of United Technologies Corporation provides jet engines for commercial airliners, also new engines are being designed and marketed in joint ventures with Rolls-Royce Group PLC and Honda Aero Inc. (Reuters.com 2011).

In 2011, Fortune ranked General Electric the 6th largest firm in the UUS, as well as the 14th most profitable. Other rankings for 2011 include 7th company for leaders, No. 5 best global brand, No.82 green company, No. 13 most admired company and No. 19 most innovative company (Fortune 500: GE, 2011).

Viewed from the Earning Statement of General Electric 10-K report, it is not hard to see half of the sales revenues are from the service sales section. Therefore, General