General Motors Company (GM)

Quick ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	18,853,000	25,224,000	23,074,000	18,227,000	19,153,000	20,745,000	16,710,000	16,349,000	20,067,000	17,365,000	22,920,000	21,609,000	19,992,000	26,939,000	28,228,000	38,506,000	19,069,000	20,051,000	17,072,000	17,176,000
Short-term investments	US$ in thousands	7,613,000	9,651,000	9,556,000	9,981,000	12,150,000	9,566,000	10,124,000	9,907,000	8,609,000	6,575,000	6,211,000	7,771,000	9,046,000	9,962,000	9,254,000	7,620,000	4,174,000	6,725,000	7,049,000	6,021,000
Receivables	US$ in thousands	12,378,000	13,923,000	14,068,000	13,702,000	13,333,000	14,021,000	12,417,000	11,946,000	7,394,000	8,091,000	8,167,000	9,126,000	8,035,000	9,939,000	7,946,000	7,536,000	6,797,000	6,924,000	10,362,000	12,116,000
Total current liabilities	US$ in thousands	94,445,000	96,820,000	92,718,000	90,185,000	91,173,000	86,003,000	79,398,000	79,555,000	74,408,000	71,951,000	74,811,000	76,323,000	79,910,000	80,603,000	77,904,000	91,292,000	84,905,000	84,252,000	84,294,000	85,303,000
Quick ratio		0.41	0.50	0.50	0.46	0.49	0.52	0.49	0.48	0.48	0.45	0.50	0.50	0.46	0.58	0.58	0.59	0.35	0.40	0.41	0.41

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($18,853,000K + $7,613,000K + $12,378,000K) ÷ $94,445,000K
= 0.41

The quick ratio, also known as the acid-test ratio, measures the ability of a company to meet its short-term obligations with its most liquid assets. General Motors Company's quick ratio over the past eight quarters has varied significantly, ranging from 0.31 to 0.62.

In the most recent period, as of December 31, 2023, the company's quick ratio stood at 0.48. This indicates that General Motors may face some challenges in meeting its short-term obligations with its readily available liquid assets. However, it's important to note that the quick ratio should be viewed in conjunction with other liquidity and efficiency metrics to obtain a comprehensive understanding of the company's financial health.

The quick ratio of 0.48 suggests that General Motors may need to assess and potentially improve the management of its short-term liquidity in order to meet its near-term financial commitments. It would be beneficial for stakeholders to monitor this ratio over time to assess the company's progress in addressing its liquidity position.