2023 Cash Flow Analysis for General Electric Co GE

General Electric Company is a multinational conglomerate known for its wide range of products and services, including power, renewable energy, aviation, and healthcare. The company is headquartered in Boston, Massachusetts, and has a rich history dating back to its founding in 1892. General Electric is recognized for its contributions to various industries and its commitment to innovation and sustainability.

The cash flow statement is a crucial financial document that outlines the cash and cash equivalents a company generates and uses over a specific period. It is divided into three main sections: operating activities, investing activities, and financing activities. This statement provides investors and analysts with insights into how effectively a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of General Electric in 2023. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the year. During the year, the cash increased, indicating that the company generated more cash than it used. The cash flow from operating activities is the largest source of cash, followed by a significant contribution from investing activities.

The cash flow from investing activities is positive, suggesting that General Electric received more from asset sales or investment returns than it spent on new investments. The cash flow from financing activities is negative, indicating that the company paid out more cash for activities such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide 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 2023. 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 2023. The counter is intended to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2023, General Electric generated $5,179 million in cash from operating activities, received $3,977 million from investing activities, and spent $8,613 million on financing activities. Consequently, the company's cash balance increased by $664 million during the year.

The company's beginning cash balance was $17,262 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $19,755 million.

The company's capital expenditures for the year were $1,595 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 $3,584 million in 2023. 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 2023 reflects a strong operational performance, with significant cash generated from operating activities. The positive cash flow from investing activities indicates successful asset management, while the negative cash flow from financing activities suggests a focus on reducing liabilities or returning value to shareholders. The increase in cash balance by the end of the year highlights the company's effective cash management strategies.