General Electric Company Return on Assets Analysis

One of the first things investors look at when analyzing an industrial conglomerate like General Electric  (NYSE: GE  ) is segmental margin. It's a good way to tell which units are outperforming and where the company should be investing. However, it's also important to look at the segmental income generated from assets, defined here as the return on assets, or ROA. This can actually be a more useful measure, because it indicates which of the company's segments are its most productive. In the case of General Electric, an ROA analysis produces some good news for investors interested in its strategic direction.


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