In the Appendix to this chapter, found from your instructor, the partial segmental disclosures for General Electric
Question:
In the Appendix to this chapter, found from your instructor, the partial segmental disclosures for General Electric (GE) are provided.
1. How does GE organize and present its segment data?
2. Compute the following ratios for 2011, 2012, and 2013 for each segment reported.
a. Segment profit percentage = (segment profit/segment revenue)
b. Segment asset turnover = (segment revenue/segment assets)
3. Compute the growth rate for each segment for revenues and assets from 2008 to 2010. For example, the formula for revenue growth rate is:
4. Evaluate each segment?s performance using the computations from questions 2 and 3. Which segment performed the best and which segment performed the worst??
5. What percentage of GE?s total revenues and assets are based outside the United States? Can you determine from the disclosures whether the trend is toward more or less globalization? Comment on the trend to the extent feasible.
Asset TurnoverAsset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Step by Step Answer:
1 GE organizes the segment data based on the nature of markets and customers 2 and 3 Growth Rate REVENUES 2013 2012 2011 2010 2009 20112013 Energy Infrastructure 37514 40648 43046 34880 28816 1285 Tec...View the full answer
