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-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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).
An analysis of liquidity metrics from March 2022 through September 2026 reveals a progressive tightening of the company's short-term financial position. While liquidity ratios initially experienced a period of stability and modest growth peaking in early 2023, a sustained downward trajectory is evident throughout the subsequent quarters, indicating a reduction in the margin of safety for meeting short-term obligations.
- Current Ratio
- The current ratio exhibited a peak of 1.25 in the first half of 2023 before entering a period of gradual decline. By June 2026, the ratio dropped below the critical threshold of 1.00, ending at 0.98 in September 2026. This transition indicates that current liabilities have grown to exceed current assets, marking a shift in the company's ability to cover short-term debts using its total current asset base.
- Quick Ratio
- A similar contraction is observed in the quick ratio, which fell from a high of 0.86 in March 2023 to 0.62 by September 2026. This steady decrease suggests a reduction in highly liquid assets relative to current liabilities, implying a growing reliance on inventory liquidation or external financing to meet immediate financial commitments.
- Cash Ratio
- The most pronounced decline occurred within the cash ratio, which plummeted from a peak of 0.52 in March 2023 to 0.21 in September 2026. This significant erosion reflects a substantial decrease in the proportion of cash and cash equivalents available to cover current liabilities, representing the sharpest deterioration among the three liquidity indicators.
The convergence of these trends suggests a systemic reduction in liquidity over the analyzed period. The simultaneous decline in all three ratios, particularly the sharp drop in the cash ratio, indicates a strategic or operational shift that has prioritized the utilization of liquid assets over the maintenance of a high liquidity buffer. The descent of the current ratio below 1.00 in the final year of the sequence signals a heightened vulnerability to short-term financial shocks.
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Current Ratio
GE Aerospace, current ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | 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 | 41,528) | 39,697) | 40,361) | 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 | 42,395) | 40,430) | 40,027) | 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 | 0.98 | 0.98 | 1.01 | 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. | 1.13 | 1.14 | 1.18 | 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. | — | 1.37 | 1.35 | 1.44 | 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 | 1.23 | 1.24 | 1.19 | 1.32 | 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. | 0.96 | 1.21 | 1.39 | 1.30 | 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. | 1.26 | 1.19 | 1.14 | 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. | 1.05 | 1.01 | 1.02 | 1.03 | 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-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q3 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 41,528 ÷ 42,395 = 0.98
2 Click competitor name to see calculations.
The liquidity profile exhibits two distinct phases separated by a significant structural realignment in the second quarter of 2024. Initial data indicates a period of relative stability where current assets and liabilities were maintained at higher absolute levels, followed by a sharp reduction in both components and a subsequent gradual decline in the current ratio.
- Asset and Liability Volume
- From March 2022 through March 2024, current assets fluctuated between approximately 56 billion and 66 billion US dollars, while current liabilities remained largely between 48 billion and 57 billion US dollars. A substantial contraction occurred in June 2024, with current assets dropping to 37.35 billion US dollars and current liabilities falling to 32.75 billion US dollars. Following this event, a slow upward trajectory is observed in both categories through September 2026, with assets reaching 41.53 billion US dollars and liabilities rising to 42.40 billion US dollars.
- Current Ratio Trend Analysis
- During the first phase (March 2022 to March 2024), the current ratio remained consistently above 1.10, peaking at 1.25 in the first half of 2023, indicating a comfortable margin of liquidity. Following the structural shift in June 2024, the ratio began a steady descent. The ratio declined from 1.14 in June 2024 to 1.01 by March 2026, eventually falling below the critical 1.0 threshold to reach 0.98 by the end of the analyzed period.
- Liquidity Implications
- The gradual convergence of current assets and current liabilities since mid-2024 suggests a tightening of short-term liquidity. The trend concludes with current liabilities exceeding current assets, signifying a shift from a position of net short-term liquidity to a deficit. This pattern is driven by the fact that current liabilities grew by approximately 29.5% between June 2024 and September 2026, while current assets grew by only 11.3% over the same period.
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Quick Ratio
GE Aerospace, quick ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | 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 | 8,764) | 9,345) | 10,981) | 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 | 14,019) | 12,360) | 12,466) | 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 | 3,527) | 3,473) | 3,439) | 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 | 26,310) | 25,178) | 26,886) | 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 | 42,395) | 40,430) | 40,027) | 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 | 0.62 | 0.62 | 0.67 | 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. | 0.31 | 0.30 | 0.32 | 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. | — | 0.77 | 0.72 | 0.86 | 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 | 0.61 | 0.62 | 0.61 | 0.66 | 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. | 0.76 | 0.76 | 0.93 | 0.88 | 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. | 1.06 | 0.97 | 0.91 | 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 | 0.65 | 0.65 | 0.67 | 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-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q3 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 26,310 ÷ 42,395 = 0.62
2 Click competitor name to see calculations.
The analysis of liquidity indicates a general contraction in the quick ratio over the observed period, moving from a high of 0.86 in March 2023 to a low of 0.62 by September 2026.
- Quick Ratio Trends
- The quick ratio exhibited moderate volatility between 0.73 and 0.86 from March 2022 through December 2024. A sustained downward trajectory became evident starting in March 2025, as the ratio declined steadily from 0.74 to 0.62 by the end of the period, signaling a reduction in the margin of safety for covering short-term liabilities with liquid assets.
- Balance Sheet Restructuring
- A significant structural shift occurred in June 2024, marked by a sharp and simultaneous decrease in both total quick assets and current liabilities. Quick assets declined from 38,831 million in March 2024 to 26,534 million in June 2024, while current liabilities fell from 51,087 million to 32,750 million. This suggests a substantial realignment of the company's short-term financial position during this quarter.
- Post-Restructuring Divergence
- Following the June 2024 adjustment, a divergence between assets and liabilities emerged. Total quick assets remained relatively flat, fluctuating between 25,178 million and 27,776 million through September 2026. In contrast, current liabilities entered a period of consistent growth, increasing from 32,750 million in June 2024 to 42,395 million by September 2026. This increase in short-term obligations, coupled with stagnant liquid assets, is the primary driver of the deteriorating quick ratio in the latter half of the analyzed timeframe.
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Cash Ratio
GE Aerospace, cash ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | 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 | 8,764) | 9,345) | 10,981) | 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 | 8,764) | 9,345) | 10,981) | 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 | 42,395) | 40,430) | 40,027) | 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 | 0.21 | 0.23 | 0.27 | 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. | 0.18 | 0.18 | 0.20 | 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. | — | 0.17 | 0.11 | 0.27 | 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 | 0.06 | 0.09 | 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. | 0.41 | 0.40 | 0.56 | 0.55 | 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. | 0.24 | 0.16 | 0.09 | 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. | 0.15 | 0.13 | 0.12 | 0.13 | 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-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q3 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,764 ÷ 42,395 = 0.21
2 Click competitor name to see calculations.
The liquidity profile of the organization exhibits a significant long-term contraction in its immediate coverage capacity. While the cash ratio showed relative stability and a brief peak in the first half of the observed period, a sustained downward trajectory is evident from late 2024 through September 2026.
- Cash Asset Trends
- Total cash assets peaked at 24,871 million US$ in December 2022 and remained elevated through March 2023. However, a persistent decline followed, with assets falling to 15,445 million US$ by June 2024. This downward trend accelerated in the latter half of the period, concluding at 8,764 million US$ in September 2026, representing a substantial reduction in absolute liquidity.
- Current Liabilities Dynamics
- Current liabilities remained consistently high between 53,344 million US$ and 56,947 million US$ from March 2022 through March 2024. A sharp reduction occurred in June 2024, where liabilities dropped to 32,750 million US$. Following this adjustment, a gradual and steady increase is observed, with liabilities rising to 42,395 million US$ by September 2026.
- Cash Ratio Interpretation
- The cash ratio reached its maximum value of 0.52 in March 2023, indicating the strongest immediate ability to cover current liabilities. The ratio remained within a range of 0.42 to 0.47 between September 2023 and September 2024. Subsequently, a consistent deterioration is observed, with the ratio falling to 0.21 by September 2026. This decline is driven by the simultaneous reduction in cash reserves and the gradual increase in current liabilities following the 2024 correction.
Overall, the data indicates a strategic or operational shift resulting in lower cash holdings relative to short-term obligations. The transition from a cash ratio of 0.52 to 0.21 suggests a significantly tighter liquidity position and a reduced margin of safety for meeting immediate financial commitments.
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