GE Vernova LLC (GEV)

Based on the liquidity ratios of GE Vernova LLC for the years 2021, 2022, and 2023, several insights can be drawn.

1. Current Ratio:
The current ratio indicates the company's ability to meet its short-term obligations with its current assets. GE Vernova LLC's current ratio has been declining over the years, from 0.95 in 2022 to 0.90 in 2023. A current ratio below 1 may suggest potential difficulties in meeting short-term liabilities with current assets.

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 Vernova LLC's quick ratio has also shown a declining trend from 0.08 in 2022 to 0.05 in 2023. This indicates that the company may have difficulty covering its short-term obligations without relying on inventory in the most recent year.

3. Cash Ratio:
The cash ratio measures the ability of a company to pay off its current liabilities solely with its cash and cash equivalents. Both the quick ratio and the cash ratio are equal in this case, indicating that there are no significant differences in the composition of current assets. The company's cash ratio has declined from 0.08 in 2022 to 0.05 in 2023, which might indicate a lower level of cash available to cover short-term liabilities.

Overall, the declining trend in all three liquidity ratios for GE Vernova LLC suggests a potential strain on its ability to meet short-term financial obligations using its current assets. It would be advisable for the company to closely monitor its liquidity position and take actions to improve its short-term financial health.

---

Additional liquidity measure

The cash conversion cycle of GE Vernova LLC has shown a gradual improvement over the past three years. In 2021, the company had a cash conversion cycle of 0.00 days, indicating an efficient management of cash inflows and outflows. However, in 2022 and 2023, the cash conversion cycle increased to 94.69 days and 92.93 days, respectively.

A higher cash conversion cycle suggests that the company takes longer to convert its investments in inventory and other resources into cash inflows from sales. This could be due to various reasons such as inefficient inventory management or slower collection of accounts receivable.

It is important for GE Vernova LLC to monitor and analyze its cash conversion cycle regularly to identify any inefficiencies in its working capital management and take appropriate measures to improve the cycle, which can help in maintaining healthy cash flows and overall financial performance.