GE Aerospace (GE)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 12,685,000 15,736,000 14,446,000 15,100,000 36,119,000
Short-term investments US$ in thousands 982,000 5,706,000 7,609,000 12,297,000 218,000
Receivables US$ in thousands 9,327,000 8,703,000 14,831,000 15,620,000 16,691,000
Total current liabilities US$ in thousands 34,392,000 32,103,000 49,428,000 51,953,000 54,613,000
Quick ratio 0.67 0.94 0.75 0.83 0.97

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($12,685,000K + $982,000K + $9,327,000K) ÷ $34,392,000K
= 0.67

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities.

Looking at the quick ratio trend for GE Aerospace from December 31, 2020, to December 31, 2024, we observe a decline over the period. In 2020, the quick ratio stood at 0.97, indicating a healthy ability to cover short-term liabilities. However, there has been a consistent decrease in the quick ratio since then, reaching 0.67 by December 31, 2024.

The decreasing trend in the quick ratio could suggest potential liquidity challenges for GE Aerospace in the short term. It may indicate that the company's current assets, excluding inventory, may not be sufficient to cover its current liabilities.

It is important for GE Aerospace to closely monitor its liquidity position and take proactive measures to improve its quick ratio to ensure it can meet its short-term financial obligations effectively. This may involve optimizing cash management, enhancing receivables collection, or reassessing current liabilities to bolster liquidity and financial stability in the future.


Peer comparison

Dec 31, 2024


See also:

GE Aerospace Quick Ratio