GE Vernova LLC (GEV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 1,551,000 | 2,067,000 | — |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 29,306,000 | 26,042,000 | — |
| Quick ratio | 0.05 | 0.08 | — |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,551,000K
+ $—K
+ $—K)
÷ $29,306,000K
= 0.05
The quick ratio, also known as the acid-test ratio, is used to evaluate a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities.
Based on the data provided, GE Vernova LLC's quick ratio decreased from 0.08 in 2022 to 0.05 in 2023. This decline suggests that the company's ability to cover its current liabilities with its most liquid assets weakened over the year.
It is notable that no quick ratio data was available for 2021, making it challenging to analyze the trend over a longer period. However, the current quick ratio of 0.05 indicates that GE Vernova LLC may potentially struggle to meet its short-term financial obligations with its current liquid assets. Further investigation into the company's liquidity position and management of working capital may be warranted to understand the reasons behind the decrease in the quick ratio.
Peer comparison
Dec 31, 2023