American Corporation Analysis

In: Business and Management

Submitted By missymichel
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General Electric’s Corporation
Using all possible resources helps companies maintain control of the business and its finances. The success of a company relies on the data that is gathered. General Electric has provided billions in financing so business can build and grow their operations and consumers can build their financial futures (GE 2013.) GE works towards the satisfaction of consumers through reliable resources used in the everyday life. This paper provides information on the different resources that GE uses. These resources consist of comparative analysis and ratio analysis that help measure profitability and liquidity.
General Electric Ratio Analysis

GE’s ability to pay its debts as the debts come due is ratio analysis. GE’s consolidated ratio position is adequate. GE consolidated ratio position is adequate. GE’s ratio is supported both by the firm’s consistent earnings track record and its ability to quickly divest business or assets to fit its strategic goals. Consolidated cash and equivalents were $8.3 billion. On a consolidated basis GE had a total of around $56 billion of contractually committed lending arrangements. General Electric, a triple-A rated, frequent borrower, is in a stable position with regards to ratio. Its issuance policy is not based on market outlook but rather on a planned program of issuance to support its ongoing financial businesses and its addition of assets.
Horizontal Analysis Horizontal or trend analysis is used to evaluate a company’s financial data over a period of time and it determines if the company has had an increase of decrease in sales. According to General Electric consolidated income statement, net sales (in millions) were:
2012 2011 2010
$13,801 $14,316 $12,163
113.5% 117.7% 100%
It can be determined that with changes since the base period, the net sales for General Electric’s increased approximately…...

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