GE Vernova LLC (GEV)
Quick ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,395,000 | 5,779,000 | 3,255,000 | 3,597,000 |
| Short-term investments | US$ in thousands | 1,001,000 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 31,233,000 | 29,065,000 | 29,516,000 | 29,430,000 |
| Quick ratio | 0.27 | 0.20 | 0.11 | 0.12 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,395,000K
+ $1,001,000K
+ $—K)
÷ $31,233,000K
= 0.27
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term obligations with its most liquid assets. A higher quick ratio is generally preferable as it indicates a stronger liquidity position.
For GE Vernova LLC, the quick ratio has shown a fluctuating trend over the year. As of December 31, 2023, the quick ratio was 0.12, indicating that the company had only 12 cents in liquid assets available to cover each dollar of current liabilities. This suggests potential liquidity challenges in meeting short-term obligations.
The quick ratio decreased slightly to 0.11 as of March 31, 2024, further highlighting the company's limited ability to meet immediate financial commitments. However, there was a significant improvement in the quick ratio to 0.20 by June 30, 2024, indicating that the company had enhanced its liquidity position.
By September 30, 2024, the quick ratio further improved to 0.27, reaching its highest point during the year. This suggests that GE Vernova LLC had increased its ability to meet short-term obligations using its most liquid assets.
Overall, the trend in GE Vernova LLC's quick ratio indicates fluctuations in liquidity levels throughout the year. The company should continue monitoring its liquidity position and aim to maintain a healthy quick ratio to ensure its ability to cover short-term liabilities efficiently.
Peer comparison
Sep 30, 2024