GE Vernova LLC (GEV)

Based on the provided data for GE Vernova LLC, the liquidity ratios have shown varying trends over the reporting periods. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has improved significantly from 0.12 in December 2023 to 1.08 in December 2024. This indicates that the company has a stronger ability to meet its short-term obligations as the ratio has increased over time.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has fluctuated over the periods, starting at 0.12 in December 2023, dropping to 0.09 in March 2024, and then gradually increasing to 0.23 by December 2024. Although the ratio experienced some fluctuations, it has generally improved towards the end of the reporting period.

Lastly, the cash ratio, which is the most conservative liquidity ratio representing the company's ability to pay off current liabilities with only cash and cash equivalents, has shown a positive trend. The ratio increased from 0.12 in December 2023 to 0.25 by December 2024, indicating an enhanced ability to settle short-term obligations using readily available cash resources.

Overall, the liquidity ratios of GE Vernova LLC have displayed improvements over the reporting periods, signaling a strengthening liquidity position and a better ability to meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle of GE Vernova LLC has shown some fluctuations over the analyzed period. Starting at 92.41 days as of December 31, 2023, it increased to 107.59 days by March 31, 2024, indicating a potential delay in converting inventory and receivables into cash. This trend continued to June 30, 2024, where the cycle extended to 111.31 days, signaling a longer time to recover cash invested in the business.

However, by September 30, 2024, the cash conversion cycle improved to 104.52 days, suggesting a more efficient management of working capital. The trend further improved by the end of the year, with the cycle decreasing to 91.70 days as of December 31, 2024, indicating a quicker conversion of inventory and receivables into cash.

Overall, while there were fluctuations in the cash conversion cycle throughout the period, the gradual improvement towards the end of the year is a positive sign for GE Vernova LLC's cash management and operational efficiency. It is essential for the company to continue monitoring and optimizing its working capital processes to sustain this positive trend in the future.