GE HealthCare Technologies Inc. (GEHC)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||
|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,874,000 | 3,550,000 | 1,997,000 | 2,551,000 | 2,494,000 | 2,408,000 |
| Short-term investments | US$ in thousands | 15,000 | 442,000 | — | — | — | — |
| Receivables | US$ in thousands | 102,000 | -10,000 | -10,000 | -6,000 | -1,000 | 6,000 |
| Total current liabilities | US$ in thousands | 9,553,000 | 8,670,000 | 8,318,000 | 8,859,000 | 8,981,000 | 7,565,000 |
| Quick ratio | 0.31 | 0.46 | 0.24 | 0.29 | 0.28 | 0.32 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,874,000K
+ $15,000K
+ $102,000K)
÷ $9,553,000K
= 0.31
The quick ratio of GE HealthCare Technologies Inc. has shown fluctuations over the past year, ranging from a low of 0.24 to a high of 0.46. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets.
In September 30, 2023, the quick ratio was 0.32, suggesting the company had $0.32 in liquid assets available to cover each dollar of current liabilities. However, the ratio decreased to 0.28 by the end of December 31, 2023, indicating a decline in the company's ability to meet short-term obligations.
The trend continued into March 31, 2024, with a quick ratio of 0.29, showing a slight improvement but still below the ideal level of 1. Interestingly, the ratio spiked in the next quarter, reaching 0.46 by September 30, 2024, indicating a significant increase in liquidity and the company's ability to cover short-term liabilities.
However, the quick ratio dropped back to 0.31 by December 31, 2024, suggesting a potential challenge in liquidity management. Overall, the fluctuating quick ratio of GE HealthCare Technologies Inc. indicates varying levels of financial stability and liquidity management throughout the year.