GE Aerospace (GE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	15,466,000	14,831,000	15,620,000	16,691,000	27,047,000
Total current liabilities	US$ in thousands	50,876,000	49,428,000	51,953,000	54,613,000	78,865,000
Quick ratio		0.73	0.75	0.83	0.97	0.92

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($15,736,000K + $5,706,000K + $15,466,000K) ÷ $50,876,000K
= 0.73

The quick ratio of General Electric Co. has exhibited fluctuations over the past five years. The company's quick ratio decreased from 1.20 in 2020 to 0.81 in 2023, indicating a potential decline in its short-term liquidity position. This decrease may raise concerns about the company's ability to meet its short-term obligations using its most liquid assets.

In 2021, the quick ratio improved to 0.97, suggesting a temporary strengthening of the company's ability to cover its current liabilities with its quick assets. However, this improvement was short-lived as the ratio declined again in 2022 to 0.83.

The quick ratio of 0.78 in 2019 was the lowest among the years presented, indicating a potential liquidity challenge for General Electric Co. during that period. Overall, the trend in the company's quick ratio shows some volatility, highlighting the importance of closely monitoring its liquidity position to ensure it can meet its short-term financial obligations effectively.