GE Aerospace (GE)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	12,685,000	12,344,000	10,665,000	17,083,000	15,736,000	12,410,000	12,025,000	11,314,000	14,446,000	12,120,000	12,587,000	12,047,000	15,100,000	24,955,000	22,460,000	31,783,000	36,119,000	39,162,000	41,431,000	47,286,000
Short-term investments	US$ in thousands	982,000	2,232,000	3,338,000	3,737,000	5,706,000	7,054,000	10,885,000	12,814,000	7,609,000	6,297,000	6,745,000	10,779,000	12,297,000	5,300,000	6,134,000	239,000	218,000	5,318,000	6,465,000	5,245,000
Total current liabilities	US$ in thousands	34,392,000	34,093,000	32,750,000	51,087,000	32,103,000	48,164,000	48,108,000	48,177,000	49,428,000	54,657,000	53,883,000	53,344,000	51,953,000	57,676,000	56,639,000	57,681,000	54,613,000	38,817,000	43,258,000	52,742,000
Cash ratio		0.40	0.43	0.43	0.41	0.67	0.40	0.48	0.50	0.45	0.34	0.36	0.43	0.53	0.52	0.50	0.56	0.67	1.15	1.11	1.00

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($12,685,000K + $982,000K) ÷ $34,392,000K
= 0.40

The cash ratio of GE Aerospace decreased from 1.00 on March 31, 2020, to 0.40 on December 31, 2024. This ratio measures the company's ability to cover its short-term obligations with its available cash and cash equivalents. A higher cash ratio suggests that the company has more cash on hand relative to its current liabilities, indicating a stronger liquidity position. Conversely, a decreasing trend in the cash ratio, as seen here, may indicate potential liquidity challenges or an inefficient use of cash resources. GE Aerospace should closely monitor its cash position and consider improving its liquidity management strategies to ensure it can meet its short-term obligations effectively.