General Electric Revenue Analysis

Revenue is the profits a company receive from sale of goods or services before any cost or expenses are subtracted; it is known as the top line on a company (Investopedia, 2016). General Electric recognizes revenue when all sales are final upon delivering or sales agreement are in place. Most of the GE multiple components are in the same agreement. GE total revenue as of December 31, 2012 was $ 146,684,000, as of December 31, 2013 was $146,045,000 and as December 31, 2014 was $148,589,000 (Yahoo Finance, 2016). The revenue for all three year had big difference; for example, 2012 to 2013 had $639,000 decrease of revenue, 2013 through 2014 we see an increase in revenue of $2,544,000 (Yahoo Finance, 2016). General Electric revenue from 2012, …show more content…
Cost of revenue as of December 31, 2012 $77,167,000, as of December 31, 2013 $79,817,000 and as of December 31, 2014 $83,859,000 (Yahoo Finance, 2016). Every year total cost went up to illustrate 2012 through 2013 it went up by $2,650,000 and from 2013 through 2014 total cost went up by $ 4,042,000. Total cost of revenue is almost double every year (yahoo finance, 2016).
Net income. Net income is the amount of revenue in an accounting period deducted the expenses at the same time with a deduction of income taxes and interest (Stock Analysis on net, 2016). Net income For General Electric Company as of December 31, 2012 $13,641,000, 2013 $13,057,000, and 2014 $15,233,000 (Yahoo Finance, 2016). General Electric Net income dropped from 2012 to 2013 however 2013 to 2014 it increases more than the sum of 2012. “The consolidated profit or loss for the period, net income taxes, including the portion attributable to the no controlling interest” (Stock Analysis on net,
…show more content…
The total revenue formula is profit margin equal Net Income over sales, profit Margin for the 2012 10.75%, 2013 11.18%, 2014 9.75% (Yahoo finance, 2016). 2013 General Electric have the greatest profit margin The Reason for 2013 Margin was in 2012 the company earnings before interest and taxes was less than 2012 and 2014 therefore income tax expense were less “on January 2, 2013 due to the fact American Taxpayer relief Act of 2012 was enacted and the law extended many provisions, including a two- years extension of the U.S. tax provision deferring tax on active financial services income and certain U.S. business credits retroactive to January 1, 2012 therefore it has taken into consideration in determining the income tax for that ratified period so tax 2013 showed backdated allowance of the earlier expired provisions” (electric, 2013). Year 2013 was more profitable to General Electric Companies because of 11.18% in the Net profit margin even though total revenue and Net income were less than the other two years. (Yahoo finance,

Related Documents