‹ GE HealthCare
Ch 2 · Profit That Turns Into Cash
Chapter 2 · Financial Health
Profit and cash. The healthy kind.
Some companies report profit but burn cash. GE HealthCare turns its profit into real, spendable cash.
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✦ The bottom line
GE HealthCare earned $2.1B and — because it spends little on equipment — turned most of it into free cash. The clean version of financial health.
↓ the brief below
Net income · fiscal year 2025
$2.1
B
A solid profit on $20.6B of sales — roughly a 10-cent bottom line on every dollar.
Source · 10-K · Consolidated Statements of Income · FY2025 · Filed Feb 4, 2026
✦ Teach me
Real cash left over
Take the cash the business collects. Subtract what it spends on factories and equipment. What's left is free cash flow. GE HealthCare designs machines more than it builds heavy plants, so this spending is light.
Wall Street calls this
Free cash flow
Light spending means most of the profit becomes cash it can actually use.
Free cash flow · fiscal year 2025
~$1.8
B
Operating cash minus only ~$0.5B of equipment spending. Most of the profit shows up as usable cash.
Source · 10-K · Cash Flow Statement (operating cash flow − capex) · FY2025 · Filed Feb 4, 2026
There's debt to note — about $9.5B, up to fund acquisitions. But against $2B+ of annual profit, it's a load the business carries comfortably.
✓
Cash-generative
Real profit that converts to real cash, with debt the business can easily handle.
You just finished
Chapter 2 · FINANCIAL HEALTH
Profit That Turns Into Cash
you now read: real cash left over (free cash flow)
Up next
Then
Chapter 4 · MANAGEMENT
A Boardroom Full of Buyers
Chapter 5 · BEHIND THE NUMBERS
Steady Grower, Bumpy World
Chapter 6 · RISK
What Could Slow the Compounder?