GE HealthCare Technologies Inc. (GEHC)

Based on the provided data, let's analyze the liquidity ratios of GE HealthCare Technologies Inc.:

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term obligations with its current assets.
- GE HealthCare Technologies Inc. has shown fluctuations in its current ratio throughout the period, ranging from a low of 1.04 on December 31, 2024, to a high of 1.25 on September 30, 2023.
- Generally, a current ratio above 1 indicates that the company can meet its short-term obligations, with a higher ratio reflecting a stronger liquidity position.
- Although the current ratio has varied, it mostly remained above 1, suggesting that GE HealthCare Technologies Inc. has been able to meet its short-term debt obligations.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- GE HealthCare Technologies Inc. exhibited similar fluctuations in its quick ratio, ranging from a low of 0.24 on June 30, 2024, to a high of 0.46 on September 30, 2024.
- A quick ratio below 1 may indicate potential difficulties in meeting short-term obligations without relying on selling inventory.
- The company's quick ratio shows variability but generally hovers below 1, indicating a dependency on inventory to meet short-term liquidity needs.

3. Cash Ratio:
- The cash ratio is the most conservative liquidity ratio, measuring the company's ability to cover its current liabilities with its cash and cash equivalents.
- GE HealthCare Technologies Inc. displayed a consistent cash ratio across the period, with values ranging from 0.28 to 0.46.
- A cash ratio of less than 1 implies that the company does not hold sufficient cash to cover its current liabilities outright.
- The company's cash ratio falling within the range of 0.28 to 0.46 indicates that GE HealthCare Technologies Inc. may need to rely on other liquid assets or financing to meet short-term obligations.

In summary, the liquidity ratios of GE HealthCare Technologies Inc. show fluctuations over the period, with the company generally maintaining a current ratio above 1 but displaying lower quick and cash ratios. It is essential for the company to carefully manage its liquidity position to ensure it can meet its short-term obligations effectively.

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Additional liquidity measure

Based on the provided data, GE HealthCare Technologies Inc. has shown an improving trend in its cash conversion cycle over the stated periods. The cash conversion cycle measures how long it takes a company to convert its investments in inventory and other resources into cash flows from sales.

From September 30, 2023, to December 31, 2024, the company's cash conversion cycle has decreased significantly from -38.43 days to -90.60 days. A negative cash conversion cycle indicates that the company is efficiently managing its working capital and generating cash flows from operations before paying suppliers.

The most recent data of -90.60 days as of December 31, 2024, indicates that GE HealthCare Technologies Inc. is able to convert its resources into cash quickly, which is a positive sign for the company's liquidity and operational efficiency. This suggests that the company is able to collect revenue from its sales faster than it takes to pay off its suppliers and manage its inventory, resulting in a shorter cash conversion cycle.