GE HealthCare Technologies Inc. (GEHC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,901,000 | 9,410,000 | 8,318,000 |
| Total current liabilities | US$ in thousands | 9,553,000 | 8,981,000 | 7,191,000 |
| Current ratio | 1.04 | 1.05 | 1.16 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,901,000K ÷ $9,553,000K
= 1.04
The current ratio of GE HealthCare Technologies Inc. has shown a decreasing trend over the past three years. As of December 31, 2022, the current ratio was 1.16, indicating that the company had $1.16 in current assets for every $1 in current liabilities. However, by December 31, 2023, the current ratio had decreased to 1.05, and further declined to 1.04 by December 31, 2024.
A current ratio above 1 typically indicates that a company has more current assets than current liabilities, which is considered favorable as it suggests the company is able to meet its short-term obligations. However, a declining current ratio may raise concerns about the company's liquidity and ability to pay off its short-term debts.
It is important for GE HealthCare Technologies Inc. to closely monitor its current ratio and take necessary steps to maintain a healthy balance between its current assets and current liabilities to ensure financial stability and liquidity in the short term.
Peer comparison
Dec 31, 2024