Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
GE Aerospace, liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The liquidity position, as indicated by the current, quick, and cash ratios, exhibits a generally declining trend over the observed period from March 31, 2022, to December 31, 2025. While fluctuations occur within the timeframe, the overall movement suggests a gradual decrease in the company’s ability to meet its short-term obligations using its most liquid assets.
- Current Ratio
- The current ratio began at 1.19 in March 2022 and generally decreased to 1.04 by December 2025. There were periods of slight improvement, such as the increase from 1.10 in September 2022 to 1.16 in December 2022, and from 1.08 in March 2025 to 1.08 in September 2025, but these were not sustained. The ratio remained above 1.0 throughout the period, indicating the company possesses more current assets than current liabilities, but the narrowing margin suggests a weakening short-term solvency position.
- Quick Ratio
- The quick ratio demonstrates a similar downward trajectory, starting at 0.82 in March 2022 and falling to 0.71 by December 2025. This ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. The decline suggests a decreasing ability to cover immediate liabilities with highly liquid assets. Fluctuations were observed, with a peak of 0.86 in March 2023, but the overall trend is negative. The ratio consistently remained below 1.0, indicating a potential challenge in meeting short-term obligations without relying on inventory sales.
- Cash Ratio
- The cash ratio, the most conservative liquidity measure, shows the most pronounced decline. Beginning at 0.44 in March 2022, it decreased to 0.32 by December 2025. This indicates a reduction in the proportion of current liabilities covered by cash and cash equivalents. While the ratio experienced some minor increases, such as from 0.35 in September 2022 to 0.44 in December 2022, the overall trend is consistently downward. The ratio remained significantly below 1.0 throughout the period, highlighting a limited capacity to cover immediate liabilities solely with cash.
In summary, the observed trends across all three liquidity ratios suggest a gradual erosion of the company’s short-term liquidity position. While the current ratio remains above 1.0, the declining trends in the quick and cash ratios warrant continued monitoring to ensure the company maintains sufficient liquidity to meet its obligations.
Current Ratio
GE Aerospace, current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 40,596) | 40,074) | 37,801) | 37,575) | 37,635) | 38,649) | 37,352) | 59,589) | 59,799) | 56,434) | 60,213) | 60,286) | 66,234) | 60,082) | 60,658) | 63,299) | |||||
| Current liabilities | 38,980) | 37,203) | 36,466) | 34,941) | 34,392) | 34,093) | 32,750) | 51,087) | 50,876) | 48,164) | 48,108) | 48,177) | 56,947) | 54,657) | 53,883) | 53,344) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.04 | 1.08 | 1.04 | 1.08 | 1.09 | 1.13 | 1.14 | 1.17 | 1.18 | 1.17 | 1.25 | 1.25 | 1.16 | 1.10 | 1.13 | 1.19 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 1.19 | 1.18 | 1.23 | 1.23 | 1.32 | 1.12 | 1.18 | 1.14 | 1.14 | 1.15 | 1.17 | 1.16 | 1.22 | 1.22 | 1.25 | 1.30 | |||||
| Caterpillar Inc. | — | 1.38 | 1.34 | 1.32 | 1.42 | 1.40 | 1.28 | 1.35 | 1.35 | 1.45 | 1.33 | 1.43 | 1.39 | 1.41 | 1.45 | 1.44 | |||||
| Eaton Corp. plc | — | 1.28 | 1.24 | 1.31 | 1.50 | 1.53 | 1.56 | 1.56 | 1.51 | 1.45 | 1.53 | 1.50 | 1.38 | 1.28 | 0.97 | 0.99 | |||||
| Honeywell International Inc. | — | 1.36 | 1.29 | 1.25 | 1.31 | 1.44 | 1.21 | 1.66 | 1.27 | 1.35 | 1.41 | 1.26 | 1.25 | 1.24 | 1.20 | 1.21 | |||||
| Lockheed Martin Corp. | 1.09 | 1.13 | 0.98 | 1.08 | 1.13 | 1.30 | 1.24 | 1.30 | 1.21 | 1.36 | 1.36 | 1.30 | 1.32 | 1.28 | 1.27 | 1.27 | |||||
| RTX Corp. | — | 1.07 | 1.01 | 1.01 | 0.99 | 0.99 | 0.99 | 1.07 | 1.04 | 1.03 | 1.10 | 1.13 | 1.09 | 1.09 | 1.10 | 1.16 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 40,596 ÷ 38,980 = 1.04
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the observed period, generally remaining above 1.0, indicating a consistent ability to cover short-term liabilities with short-term assets. However, a subtle downward trend is discernible towards the end of the period.
- Overall Trend
- From March 31, 2022, through December 31, 2022, the current ratio fluctuated between 1.10 and 1.19. A relative peak was observed in December 2022 at 1.16. The first half of 2023 showed stability at 1.25. Subsequently, the ratio experienced a gradual decline, falling to 1.04 by December 31, 2025.
- Short-Term Fluctuations
- A slight decrease was noted from the first quarter of 2022 (1.19) to the fourth quarter of 2022 (1.16). The ratio then strengthened in the first two quarters of 2023, reaching 1.25. A more pronounced downward trend began in the third quarter of 2023 (1.17) and continued through the subsequent quarters.
- Recent Performance
- The most recent quarters demonstrate a continued weakening of the current ratio. It decreased from 1.17 in September 2023 to 1.04 in December 2025. This suggests a potential tightening of short-term liquidity, although the ratio remains above 1.0.
- Underlying Components
- The decline in the current ratio appears to be driven by a combination of factors. While current assets experienced some volatility, they generally remained stable until a decrease in the first quarter of 2024. Current liabilities also fluctuated, but the decrease in current assets in the latter part of the period contributed more significantly to the ratio’s decline.
In conclusion, while the company consistently maintained a current ratio above 1.0 throughout the analyzed period, the recent downward trend warrants monitoring. Further investigation into the drivers of the changes in both current assets and current liabilities is recommended to assess the sustainability of short-term liquidity.
Quick Ratio
GE Aerospace, quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash, cash equivalents and restricted cash | 12,392) | 12,501) | 10,861) | 12,405) | 13,619) | 13,724) | 12,107) | 18,447) | 16,967) | 13,127) | 12,766) | 12,001) | 17,262) | 12,596) | 13,190) | 12,842) | |||||
| Investment securities | —) | 1,008) | 998) | 1,000) | 982) | 2,232) | 3,338) | 3,737) | 5,706) | 7,054) | 10,885) | 12,814) | 7,609) | 6,297) | 6,745) | 10,779) | |||||
| Current receivables | 11,773) | 10,671) | 10,512) | 9,653) | 9,327) | 8,936) | 8,370) | 15,100) | 15,466) | 14,546) | 14,767) | 14,212) | 17,976) | 17,197) | 16,283) | 16,050) | |||||
| Financing receivables, net | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||
| Other GE Capital receivables | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||
| Current contract assets | 3,511) | 3,111) | 3,059) | 2,940) | 2,982) | 2,884) | 2,719) | 1,547) | 1,500) | 1,875) | 2,037) | 2,244) | 3,088) | 3,701) | 4,241) | 4,246) | |||||
| Total quick assets | 27,676) | 27,291) | 25,430) | 25,998) | 26,910) | 27,776) | 26,534) | 38,831) | 39,639) | 36,602) | 40,455) | 41,271) | 45,935) | 39,791) | 40,459) | 43,917) | |||||
| Current liabilities | 38,980) | 37,203) | 36,466) | 34,941) | 34,392) | 34,093) | 32,750) | 51,087) | 50,876) | 48,164) | 48,108) | 48,177) | 56,947) | 54,657) | 53,883) | 53,344) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.71 | 0.73 | 0.70 | 0.74 | 0.78 | 0.81 | 0.81 | 0.76 | 0.78 | 0.76 | 0.84 | 0.86 | 0.81 | 0.73 | 0.75 | 0.82 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 0.38 | 0.34 | 0.34 | 0.35 | 0.39 | 0.24 | 0.26 | 0.22 | 0.28 | 0.28 | 0.28 | 0.29 | 0.32 | 0.29 | 0.28 | 0.29 | |||||
| Caterpillar Inc. | — | 0.78 | 0.72 | 0.69 | 0.80 | 0.76 | 0.69 | 0.73 | 0.74 | 0.76 | 0.74 | 0.79 | 0.79 | 0.78 | 0.81 | 0.84 | |||||
| Eaton Corp. plc | — | 0.65 | 0.63 | 0.74 | 0.85 | 0.87 | 0.94 | 0.93 | 0.91 | 0.84 | 0.85 | 0.78 | 0.73 | 0.65 | 0.50 | 0.51 | |||||
| Honeywell International Inc. | — | 0.98 | 0.90 | 0.83 | 0.88 | 0.96 | 0.83 | 1.18 | 0.84 | 0.92 | 0.98 | 0.84 | 0.88 | 0.85 | 0.82 | 0.84 | |||||
| Lockheed Martin Corp. | 0.90 | 0.93 | 0.80 | 0.87 | 0.92 | 1.10 | 1.05 | 1.08 | 0.99 | 1.14 | 1.14 | 1.07 | 1.09 | 1.06 | 1.03 | 1.03 | |||||
| RTX Corp. | — | 0.67 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.64 | 0.63 | 0.63 | 0.68 | 0.71 | 0.69 | 0.70 | 0.71 | 0.76 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 27,676 ÷ 38,980 = 0.71
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates fluctuations, generally remaining below one but exhibiting periods of improvement. An initial decline is observed from the first quarter of 2022 through the third, followed by a recovery in the fourth quarter. This pattern of fluctuation continues into 2023 and 2024, with a more pronounced downward trend emerging in the latter half of 2024 and continuing into 2025.
- Overall Trend
- The quick ratio generally decreased over the analyzed period. While there were quarterly improvements, the overall trajectory points towards a weakening ability to meet short-term obligations with highly liquid assets. The ratio started at 0.82 in March 2022 and concluded at 0.71 in December 2025.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to June 2022, the quick ratio decreased from 0.82 to 0.75. A further decline to 0.73 was noted in September 2022, before recovering to 0.81 by December 2022. The first half of 2023 showed relative stability, fluctuating between 0.84 and 0.86. This suggests a period of managing liquidity effectively, despite some underlying volatility.
- Mid-Term Stability & Subsequent Decline (2023-2025)
- The quick ratio remained relatively stable between 0.76 and 0.81 through September 2023. However, a noticeable decline began in the fourth quarter of 2023, falling to 0.78. This downward trend accelerated in 2024, with the ratio decreasing from 0.76 in March to 0.71 in December. This suggests increasing pressure on short-term liquidity. The decline continued into the first three quarters of 2025, reaching a low of 0.71 in December.
- Asset and Liability Dynamics
- Total quick assets generally decreased over the period, from US$43,917 million in March 2022 to US$27,676 million in December 2025. Current liabilities also decreased, but at a slower rate, falling from US$53,344 million to US$38,980 million over the same period. This disparity between the decline in assets and liabilities contributes to the observed decrease in the quick ratio.
The observed trends suggest a potential weakening in the company’s short-term liquidity position. Continued monitoring of this ratio, alongside other liquidity metrics, is recommended.
Cash Ratio
GE Aerospace, cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash, cash equivalents and restricted cash | 12,392) | 12,501) | 10,861) | 12,405) | 13,619) | 13,724) | 12,107) | 18,447) | 16,967) | 13,127) | 12,766) | 12,001) | 17,262) | 12,596) | 13,190) | 12,842) | |||||
| Investment securities | —) | 1,008) | 998) | 1,000) | 982) | 2,232) | 3,338) | 3,737) | 5,706) | 7,054) | 10,885) | 12,814) | 7,609) | 6,297) | 6,745) | 10,779) | |||||
| Total cash assets | 12,392) | 13,509) | 11,859) | 13,405) | 14,601) | 15,956) | 15,445) | 22,184) | 22,673) | 20,181) | 23,651) | 24,815) | 24,871) | 18,893) | 19,935) | 23,621) | |||||
| Current liabilities | 38,980) | 37,203) | 36,466) | 34,941) | 34,392) | 34,093) | 32,750) | 51,087) | 50,876) | 48,164) | 48,108) | 48,177) | 56,947) | 54,657) | 53,883) | 53,344) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.32 | 0.36 | 0.33 | 0.38 | 0.42 | 0.47 | 0.47 | 0.43 | 0.45 | 0.42 | 0.49 | 0.52 | 0.44 | 0.35 | 0.37 | 0.44 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 0.27 | 0.22 | 0.22 | 0.23 | 0.27 | 0.11 | 0.13 | 0.08 | 0.17 | 0.14 | 0.15 | 0.16 | 0.19 | 0.16 | 0.14 | 0.15 | |||||
| Caterpillar Inc. | — | 0.21 | 0.16 | 0.11 | 0.21 | 0.17 | 0.13 | 0.15 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.21 | 0.21 | 0.22 | |||||
| Eaton Corp. plc | — | 0.06 | 0.06 | 0.20 | 0.26 | 0.25 | 0.34 | 0.32 | 0.34 | 0.25 | 0.20 | 0.09 | 0.09 | 0.08 | 0.07 | 0.06 | |||||
| Honeywell International Inc. | — | 0.59 | 0.49 | 0.46 | 0.52 | 0.56 | 0.47 | 0.73 | 0.44 | 0.46 | 0.51 | 0.40 | 0.51 | 0.44 | 0.43 | 0.49 | |||||
| Lockheed Martin Corp. | 0.18 | 0.15 | 0.05 | 0.09 | 0.13 | 0.18 | 0.14 | 0.16 | 0.09 | 0.21 | 0.21 | 0.14 | 0.16 | 0.15 | 0.11 | 0.12 | |||||
| RTX Corp. | — | 0.11 | 0.09 | 0.10 | 0.11 | 0.13 | 0.12 | 0.12 | 0.14 | 0.12 | 0.13 | 0.15 | 0.16 | 0.14 | 0.13 | 0.17 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 12,392 ÷ 38,980 = 0.32
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates fluctuations, generally remaining within a range of 0.32 to 0.52. An initial decline is observed from the first quarter of 2022 through the third, followed by a recovery in the fourth quarter. This pattern of fluctuation continues into 2023 and 2024, with a noticeable decrease beginning in the second quarter of 2024 and persisting through the first half of 2025.
- Overall Trend
- The cash ratio exhibits a generally stable, yet variable, pattern over the observed timeframe. While no consistently strong upward or downward trend is apparent across the entire period, a recent decline warrants attention. The ratio decreased from 0.47 in the second quarter of 2024 to 0.32 in the second quarter of 2025.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to December 2022, the cash ratio decreased from 0.44 to 0.44, indicating a period of relative stability despite internal fluctuations in cash assets and current liabilities. The ratio then increased to 0.52 in the first quarter of 2023, before decreasing to 0.49 in the second quarter. The remainder of 2023 saw the ratio remain relatively stable, fluctuating between 0.42 and 0.45.
- Recent Performance (2024-2025)
- The first quarter of 2024 began with a cash ratio of 0.43, followed by a significant decrease to 0.47 in the second quarter. This decrease continued through the subsequent quarters, reaching 0.32 in the second quarter of 2025. This recent decline suggests a potential weakening in the company’s immediate liquidity position. Total cash assets decreased from US$22,184 million in the first quarter of 2024 to US$11,859 million in the second quarter of 2025, while current liabilities remained relatively stable, contributing to the ratio’s decline.
- Component Analysis
- Total cash assets experienced a notable decrease over the period, particularly from the first quarter of 2024 onwards. Current liabilities, while also fluctuating, demonstrated less volatility than cash assets. The interplay between these two components directly influences the cash ratio, with the recent decline in cash assets being the primary driver of the observed decrease in the ratio.
In conclusion, while the cash ratio has historically demonstrated a degree of stability, the recent downward trend warrants further investigation to determine the underlying causes and potential implications for the company’s short-term financial health.