GE Aerospace (GE)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	59,799,000	58,384,000	66,348,000	84,853,000	103,096,000
Total current liabilities	US$ in thousands	50,876,000	49,428,000	51,953,000	54,613,000	78,865,000
Current ratio		1.18	1.18	1.28	1.55	1.31

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $59,799,000K ÷ $50,876,000K
= 1.18

The current ratio of General Electric Co. has shown fluctuations over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is considered a good sign.

In 2023, the current ratio stands at 1.18, slightly higher than the previous year's ratio of 1.16. Although the ratio has increased, it is still below the 2021 figure of 1.28 and significantly lower than the peak ratio of 1.58 in 2020. The decrease in the current ratio over the years may indicate a decrease in current assets relative to current liabilities or a higher level of short-term obligations.

It is essential for General Electric Co. to closely monitor its current ratio to ensure it maintains a healthy balance between current assets and current liabilities. A consistently decreasing current ratio could potentially put the company at risk of liquidity issues and may require further analysis of its working capital management.