General Electric: The More Cash The Better

Fast analysis for GE (General Electric). They need more money, and they need it fast.

  • General Electric is scratching for more revenue this year to keep their investors.
  • Action is taken by making fundamental changes to hold cash flow.
  • 2018 2Q results were not very impressive, can they finish the year strong?

GE (General Electric Co.,$13.41), is constantly being surveyed by investors for their performance. Investors are looking for GE to increase their cash flow- create effective projects to strengthen their total revenue.

(General Electric has made a strong downtrend within a year. Screenshot from

Seeking immediate action to correct financials, GE plans to “sell key parts of its digital business” to make further improvements. So far this year, industrial, structural costs have been reduced by $1.1 billion– impressively completing a halfway mark for their 2018 goal of $2 billion.

Yet in the second quarter of 2018, their orders for their “Power” category were down a hefty 28% as well as orders for “Renewable Energy” down 15%. The company stated in regards to their “Power” operations,

The team continues to focus on right-sizing footprint and structural cost and maximizing the value of Power’s installed base.

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On the other hand, their orders for “Oil & Gas” reached 95% ($6 billion) as well as increased organic orders by 2%. Revenue for this category was also up 85% to $5.6 billion, a positive approach from their revenues this time last year at $3 billion.

GE is often compared to other corporations such as HON (Honeywell International INC.), UTX (United Technologies Corp.), and MMM (3M Co.). This year, GE is expecting to make fundamental changes to improve their corporation. Their current ratio remains fair at 1.8% from last year and 2Q earnings were beat at a low price of$0.19 cents a share from the projected price of $0.17 cents a share.

Shareholders are continuing to look for consistency in growth throughout the entire corporation. GE presses forward with a stronger partnership this year with Microsoft by enhancing and standardizing Microsoft’s Azure cloud capabilities. Sales for Microsoft’s Azure topped $5.5 billion in 2015 and continues to strengthen in time. Despite rumors and negative reports, loyal shareholders remain to have a positive for GE this year.

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Author: Black Tea

C.Jackson, creative writing and investor at Black Tea. Building a brand and social network community with investors and entrepreneurs.

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