Why did GE's R&D expenses fluctuate in 2023?

General Electric's (GE) R&D expenses for 2023 were $1.01 billion. The fluctuation in GE's R&D expenses in 2023 can be attributed to several factors: 1. **Aerospace Segment Performance**: The Aerospace segment experienced robust demand for commercial engines and services, spare parts, and defense, which led to a 25% year-over-year increase in revenues to $8,409 million. This strong performance likely resulted in higher R&D expenses as the company invested in developing new products and technologies to meet the increased demand. 2. **Power and Renewable Energy Segment Recovery**: The Power segment saw revenues increase by 13% year over year, reaching $16.3 billion. The Renewable Energy segment also showed improvement, with revenues growing by 15% to $4,151 million. These segmental recoveries could indicate a shift in R&D focus towards addressing the specific needs of these markets, potentially leading to increased R&D spending. 3. **Overall Financial Performance**: GE's financial performance in 2023 was strong, with total revenues exceeding expectations and a significant year-over-year increase in earnings. The company's ability to generate strong cash flows likely provided the financial flexibility to invest in R&D activities. In conclusion, the fluctuation in GE's R&D expenses in 2023 was likely driven by the company's strategic responses to the recovery in specific segments, such as Aerospace, Power, and Renewable Energy, and its overall strong financial performance. |code|Ticker|Name|Date|R&D Expenses|R&D Expenses YoY|market_code| |---|---|---|---|---|---|---| |GE|GE.N|GE Aerospace|2023 Q1|4.31E8|6.9478908188585615|169| |GE|GE.N|GE Aerospace|2023 Q2|2.39E8|-45.558086560364465|169| |GE|GE.N|GE Aerospace|2023 Q3|2.47E8|-42.01877934272301|169| |GE|GE.N|GE Aerospace|2023 Q4|2.96E8|-42.857142857142854|169|