GE Vernova LLC (GEV)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,551,000 | 2,067,000 | — |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 29,306,000 | 26,042,000 | — |
| Cash ratio | 0.05 | 0.08 | — |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,551,000K
+ $—K)
÷ $29,306,000K
= 0.05
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Looking at the cash ratio of GE Vernova LLC over the past two years, we see a decline from 0.08 in 2022 to 0.05 in 2023. This suggests that the company may have experienced a decrease in its liquidity position as compared to the previous year. It is important to note that the cash ratio for 2021 is not available, making it challenging to track the trend over a longer period.
A cash ratio of 0.05 indicates that for every dollar of current liabilities, GE Vernova LLC has $0.05 in cash and cash equivalents to cover these obligations. While a lower cash ratio can indicate potential liquidity challenges, it is essential to consider other factors such as the company's overall financial health, its industry norms, and any specific business strategies that may impact its cash holdings.
Further analysis and comparison with industry benchmarks and competitors' cash ratios can provide additional insights into GE Vernova LLC's liquidity position and its ability to manage short-term obligations effectively.
Peer comparison
Dec 31, 2023