Before establishing General Electric’s net worth, you need to know what it entails. The calculation, however, is relatively simple.
So, how much money is General Electric worth? It currently stands at about $38.9 billion, which is an increase from last year’s value of $37.0 billion. However, the company’s net worth is not constant. It can increase or decrease over time. Therefore, knowing how to determine it is crucial. This way, you can find the net worth at any given time.
General Electric is a multinational corporation based in Boston, New York, US. The company deals with renewable energy, the digital industry, aviation, and power. In fact, it featured in the 2020 Fortune 500 rankings at 33 among the biggest firms in America in terms of gross turnover.
Investors are the key people interested in knowing the net worth of a particular company. This is to help them make the right investment decisions. When you know a company’s financial state, you can make an informed decision regarding its investment potential.
The Growth of General Electric
General Electric began in 1892 when Thomas Edison’s General Electric and Thomas-Houston Electric Company came together. It started as a publicly-traded company in the US and was among the first public companies. In 2011, the company appeared on the Fortune 500 list in position 14 as one of the most profitable businesses.
However, General Electric went down, leading to 75% of its profits collapsing. Fortunately, it started rising again in 2018 when John Flanner took over the CEO position. Currently, it employees more than 300,000 people. Besides, its shares are listed on the Dow Jones Industrial Index.
Calculating General Electric’s Net Worth
What is General Electric worth?
Establishing the net worth of a company is usually straightforward. It becomes easy to calculate its value when you have the correct information about its assets and liabilities.
But because General Electric is a publicly-traded company, its net worth is measured by its shareholder equity.
The shareholder equity amount, also known as the book value, is the total amount shareholders of a company would get if the assets are liquidated and debts paid. You can determine Comcast’s net worth and shareholder equity by finding the difference between the total market cap and liabilities.
It is critical to note that a business’s net worth is not the same as its market cap. The market cap value shows the current market value of the company’s shares and doesn’t include liabilities. However, the shareholder equity amount considers both liabilities and total shares.
General Electric’s current net worth is $38.9 billion. Although the company’s value is not constant, it is performing well financially and will likely do better in the future. Therefore, interested investors should be aware of it.