GE Aerospace (GE)
Quick 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 | 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 |
| Receivables | US$ in thousands | 9,327,000 | 8,936,000 | 8,370,000 | 15,100,000 | 8,703,000 | 14,546,000 | 14,767,000 | 14,212,000 | 14,831,000 | 17,197,000 | 16,283,000 | 16,050,000 | 15,620,000 | 15,145,000 | 15,506,000 | 15,687,000 | 16,691,000 | 17,302,000 | 16,041,000 | 27,427,000 |
| 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 |
| Quick ratio | 0.67 | 0.69 | 0.68 | 0.70 | 0.94 | 0.71 | 0.78 | 0.80 | 0.75 | 0.65 | 0.66 | 0.73 | 0.83 | 0.79 | 0.78 | 0.83 | 0.97 | 1.59 | 1.48 | 1.52 |
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 of GE Aerospace fluctuated over the period from March 31, 2020, to December 31, 2024, ranging from a high of 1.59 to a low of 0.65. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities, while a ratio below 1 suggests potential liquidity issues.
In the case of GE Aerospace, the quick ratio generally remained above 1 until the end of 2021, indicating a healthy liquidity position. However, starting from March 31, 2022, the quick ratio gradually declined, reaching its lowest point of 0.65 on September 30, 2022, before showing some fluctuations but eventually stabilizing around 0.70 to 0.80 during the last quarter of 2023 and the first half of 2024.
The decreasing trend in the quick ratio from 2022 onwards may raise concerns about GE Aerospace's ability to meet its short-term obligations with its current liquid assets. Further analysis of the company's cash flow, working capital management, and overall financial health would be necessary to understand the reasons behind this trend and assess the company's liquidity position more comprehensively.
Peer comparison
Dec 31, 2024