Liquidity Analysis

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

General Electric Co., liquidity ratios

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Current ratio 0.90 0.87 0.77 1.11 0.79
Quick ratio 0.53 0.55 0.46 0.80 0.48
Cash ratio 0.30 0.32 0.19 0.52 0.23

Source: Based on data from General Electric Co. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. General Electric Co.'s current ratio improved from 2011 to 2012 and from 2012 to 2013.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. General Electric Co.'s quick ratio improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. General Electric Co.'s cash ratio improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013.

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Current Ratio

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Current assets 42,232  41,750  33,948  41,103  30,418 
Current liabilities 46,947  48,053  44,335  36,876  38,361 
Current Ratio, Comparison to Industry
General Electric Co.1 0.90 0.87 0.77 1.11 0.79
Industry, Industrials 1.32 1.30 1.25 1.33 1.24

Source: Based on data from General Electric Co. Annual Reports

2013 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 42,232 ÷ 46,947 = 0.90

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. General Electric Co.'s current ratio improved from 2011 to 2012 and from 2012 to 2013.

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Quick Ratio

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Cash and equivalents 13,682  15,509  8,382  19,241  8,654 
Investment securities 323  74  18  19  30 
Current receivables 10,970  10,872  11,807  10,383  9,818 
Total quick assets 24,975  26,455  20,207  29,643  18,502 
Current liabilities 46,947  48,053  44,335  36,876  38,361 
Quick Ratio, Comparison to Industry
General Electric Co.1 0.53 0.55 0.46 0.80 0.48
Industry, Industrials 0.78 0.78 0.74 0.85 0.80

Source: Based on data from General Electric Co. Annual Reports

2013 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 24,975 ÷ 46,947 = 0.53

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. General Electric Co.'s quick ratio improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013.

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Cash Ratio

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Cash and equivalents 13,682  15,509  8,382  19,241  8,654 
Investment securities 323  74  18  19  30 
Total cash assets 14,005  15,583  8,400  19,260  8,684 
Current liabilities 46,947  48,053  44,335  36,876  38,361 
Cash Ratio, Comparison to Industry
General Electric Co.1 0.30 0.32 0.19 0.52 0.23
Industry, Industrials 0.35 0.35 0.29 0.38 0.35

Source: Based on data from General Electric Co. Annual Reports

2013 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 14,005 ÷ 46,947 = 0.30

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. General Electric Co.'s cash ratio improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013.

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