General Electric: Q2 Cash Burn Could Trigger A Ratings Action

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About: General Electric Company (GE)
by: Shock Exchange
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Summary

CEO Larry Culp divulged GE could have a Q2 cash burn of $3.5 billion to $4.5 billion.

GE could be hard-pressed to generate positive FCF for full-year 2020.

The pandemic has hurt revenue and operating income for Aviation, the company's remaining moat.

I estimate GE's proforma debt-to-EBITDA exceeds 6x. It could worsen amid cash burn.

A ratings action could be warranted. Sell GE.

General Electric CEO Larry Culp. Source: Barron's

The constant buying and selling of assets have made it difficult to forecast General Electric's (GE) future earnings. Aviation, Power Systems, and Renewable Energy - or