This Is General Electric's Biggest Long-Term Problem
The troubles that industrial icon General Electric (NYSE: GE) has been dealing with are headline grabbers. The biggest story has been its heavy debt load and the efforts to sell assets to get its balance sheet back into shape. However, that's not the whole story. Even if the company manages to buy itself time in this long and slow-moving turnaround effort, it still has a big problem to tackle in its operating businesses and there's no easy fix. This is what you need to be watching if you are looking at GE today.
The first really big issue for General Electric to deal with, without question, was its balance sheet. This is the financial foundation of a company, and if it isn't strong, even a great business can end up crumbling. So it makes complete sense that CEO Larry Culp, who assumed the helm in late 2018, quickly focused on strengthening the company's financial position. That notably included selling assets, the biggest being a piece of the company's healthcare division, which closed in early 2020, to Culp's former employer Danaher.
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Source Fool.com
