2022 Cash Flow Analysis for General Electric Co GE

General Electric Company (GE) is a multinational conglomerate known for its wide range of industrial products and services, including power generation, renewable energy, aviation, and healthcare. The company is headquartered in Boston, Massachusetts, and was founded in 1892. GE has a long history of innovation and has been a leader in various industrial sectors for over a century.

The cash flow statement is a crucial financial document that illustrates how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three main sections: operating activities, investing activities, and financing activities. This statement is essential for investors and analysts to understand how a company manages its cash resources.

How to read the chart

The chart above shows the cash flow of General Electric in 2022. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We start on the left with the company's cash position at the beginning of the year. Because the cash increased during the year, a part of that cash was used for financing and investing activities. The cash flow from operating activities is the largest source of cash, followed by a positive amount from investing activities.

The cash flow from investing activities is positive, indicating that the company received more from selling assets or investments than it spent on new investments. The cash flow from financing activities is negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After taking the change in cash into account, we end on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To get a sense of the scale of General Electric's cash flow, we have created a real-time counter that simulates the company's cash flow for 2022. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they happen, but a simulation based on the company's reported cash flow for 2022. The counter is meant to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, General Electric generated $5,916 million in cash from operating activities, received $2,270 million from investing activities, and spent $5,585 million on financing activities. As a result, the company's cash balance increased by $2,232 million during the year.

The company's beginning cash balance was $16,859 million. Typically, this amount includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $17,262 million.

The company's capital expenditures for the year were $2,658 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $3,258 million in 2022. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

General Electric's cash flow in 2022 highlights a strong performance in operating activities, generating a substantial amount of cash. The positive cash flow from investing activities suggests successful asset management, while the negative cash flow from financing activities indicates significant outflows for debt repayments and other financial obligations. Overall, the company's cash position improved by the end of the year, demonstrating effective cash management strategies.