GE 2006 Annual Report Download - page 26

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Execution
& Financial
Discipline
For decades, GE has unleashed the power of its processes
to drive profi table growth. Our reputation for operational
rigor is as much a key to our future as it is a legacy
of our past. Beyond merely maintaining an unrelenting
focus on financial discipline and execution, we are
enhancing these capabilities, measurable through key
metrics such as operating profit margin and return
on average total capital (ROTC).
GE is enriching its services capabilities across businesses
and focusing on product innovation to expand individual
margin rates by as much as 30%. These efforts together
with overhead cost reductions and high-return business
investments have increased ROTC, positioning us to
reach our goal of 20% by 2008.
OPERATING PROFIT MARGIN RETURN ON AVERAGE TOTAL CAPITAL
(Excluding Pension) 2004 2005 2006 2007* 2004 2005 2006 2007*
(%)
13.5 14.8 15.2 ~16.2 (%)
16.2 16.6
18.4 ~19.0
*Forecast *Forecast
24 ge 2006 annual report