GE HealthCare Technologies Inc. (GEHC)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,494,000 | 2,408,000 | 1,936,000 | 2,324,000 | 1,440,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | -1,000 | 6,000 | 9,000 | 3,504,000 | 3,409,000 |
| Total current liabilities | US$ in thousands | 8,981,000 | 7,565,000 | 7,581,000 | 8,236,000 | 7,191,000 |
| Quick ratio | 0.28 | 0.32 | 0.26 | 0.71 | 0.67 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,494,000K
+ $—K
+ $-1,000K)
÷ $8,981,000K
= 0.28
The quick ratio of GE HealthCare Technologies Inc. has shown significant fluctuations over the past five quarters. As of December 31, 2023, the quick ratio stands at 0.28, indicating that the company may have difficulties meeting its short-term obligations using its most liquid assets. This represents a decline from the previous quarter's quick ratio of 0.32.
The sharp decrease in the quick ratio from March 31, 2023 (0.71) to June 30, 2023 (0.26) could suggest potential challenges in managing short-term liquidity. However, the quick ratio improved in the following quarters, reaching 0.67 by December 31, 2022.
Overall, the current quick ratio of 0.28 raises concerns about the company's ability to cover immediate liabilities without relying on selling inventory. It may be advisable for stakeholders to closely monitor GE HealthCare Technologies Inc.'s liquidity position and management strategies to ensure financial stability in the short term.
Peer comparison
Dec 31, 2023