Business Analysis Ii

When conducting a business analysis for General Electric Company, we need to consider the income statement, balance sheet and cash flow statements to determine the financial health of that company. We will analysis the financial health, technological advantages in the diversified machinery industry determine the affects of globalization and conduct a benchmark analysis.

Three too that company’s use to determine how much money the company can make a profit are income statement, balance sheet and cash flow statements. An income statement summarizes sales revenue, expenses and net income over a period of time (1989). Balance sheets are reports that show a company’s assets and liabilities. Cash flow statement show the money that is received by the company and leaving the company during a period of time.

General Electric’s financial statements for the first quarter, 2012, they beat the pervious year’s net income by 16 percent. General Electric’s balance sheet and cash flow statement indicate the company is financial health sound and the company has plenty of cash reserves. When comparing the financial results from the three companies, GE has the strongest net income. This represents that General Electrics’ income after all of the company’s expenses, GE’s income still surpasses its competitors, as indicated on GE cash flow statement.

In comparing General Electric’s financial health to those of its competitors; Caterpillar Inc and United Technologies Corp, General Electric has the strongest thus far. Below is a graph that outlines each company third or second quarter results for year 2011. (Press )

General Electric (GE) QTR 1 Caterpillar Inc (CAT) QTR 1 United Technologies Corp (UTX) QTR 1

Revenue 147,300,000 17,243,000 58,190,000

Net Income 13,120,000 1,547,000 4,979,000

Gross Margin 25.25%

Year 2012 2012 2012

General Electric’s corporation is based in CT, Fairfield; they are a technology and financial holding company. General Electric is a globally...