GE Aerospace (GE)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	15,736,000	14,446,000	15,100,000	36,119,000	35,222,000
Short-term investments	US$ in thousands	5,706,000	7,609,000	12,297,000	218,000	10,025,000
Total current liabilities	US$ in thousands	50,876,000	49,428,000	51,953,000	54,613,000	78,865,000
Cash ratio		0.42	0.45	0.53	0.67	0.57

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($15,736,000K + $5,706,000K) ÷ $50,876,000K
= 0.42

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations without relying on external sources.

In the case of General Electric Co., the cash ratio has fluctuated over the past five years. In 2023, the cash ratio was 0.51, showing a slight decrease from the previous year's ratio of 0.52. This downward trend suggests a potential decrease in the company's ability to cover its short-term liabilities with cash on hand.

Comparing to the ratios in 2021 and 2020, where the cash ratios were 0.67 and 0.91 respectively, there has been a significant decline in the company's liquidity position. The cash ratio of 0.58 in 2019 was also higher than the current ratio, indicating a stronger liquidity position in that year compared to the most recent data.

Overall, General Electric Co. should closely monitor its cash position and take steps to improve its liquidity in order to ensure its ability to meet short-term obligations efficiently.