Company Name: General Electric Required: 1) Introduction 2) Company Background a

Question

Company Name: General Electric

Required: 1) Introduction

2) Company Background and main Competitors

3) Financial Data

4) Analysis of Financial Data

Write at least 3 pages. Don't copy from anywhere.

Additional Instruction: The data in study needs to be supported by acceptable references (Wikipedia and Blogs are not acceptable references).

Clearly stated (in the introduction) the primary area or areas student is providing for his/her detailed analysis on company selected.

Provided relevant financial data that business leaders would use to understand the financial health of their organization. Also provided data that business leaders would be able to use to make sound business decisions.

Provided an analysis of the current financial health of the organization. Provided analysis on what strategies were successful and which failed. Statements were well supported by peer reviewed or scholarly references. Research was thorough and appropriate for business analysis. Embedded financial analysis in a narrative.

Written in clear and concise manner, Flawless spelling, punctuation and grammar.

Explanation / Answer

Here are the following points that you can expand upon so that the final document can be of 3 pages long.

Company background

General Electric Company is an American behemoth which has business interests in multiple areas that include and is not limited to energy, aviation, healthcare infrastructure, venture capital and business financing, and oil and gas. It has its headquarter in Boston, Massachusetts.

I am sure you can find much more data on the history of GE from various sources such as the internet and other readings.

Main Competitors

Undoubtedly, GE’s biggest competitor is Siemens. In addition to this, 3M, Hitachi and United Technologies are its competitors.

Financial Analysis

I took the financial data from NYSE and investor report from GE’s website and the following is the analysis of the same.

GE’s biggest concern as per me is its burgeoning debt numbers. GE has a debt level of around $130 billion which is made up of current and long term debt. As far as its cash and short term investments are concerned, it is at $80 billion, which means it has a very low cash to debt ratio. Now, generally for such large companies, debt is normally higher than equity because they enjoy lower cost of capital. On top of that interest payments are tax deductible. But the company at the end of the day is loss making. Hence such high levels of leverage is a concern.

The good news is that GE has recently decided to separate the healthcare business and its 62.5% ownership in Baker Hughes. Further, it will also sell off GE Transportation to Westinghouse AirBrake Technologies Corp. With this, there are 2 things important things that will happen. One, GE’s business will become more focused. Two, it will reduce the debt levels by close to $25 billion. This will help in deleveraging GE in a major way.

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