Quick Ratio

The quick ratio measures a company’s ability to pay short-term liabilities with its most liquid assets, excluding inventory; a value of 0.52x means GE has only $0.52 in liquid assets for every $1 of current debt, indicating a tight liquidity position.

Among its sector peers, GE’s quick ratio of 0.52x falls below the sector median of 0.71x, placing it in the 32nd percentile. Historical data show only two values: the current 0.52x and a prior 0.65x, with a year-over-year change that is not available and a quarter-over-quarter decline of -20.0%. The combination of a below-median level and a sharp quarterly drop suggests elevated short-term liquidity risk, as the company’s ability to cover obligations has weakened recently. This liquidity weakness directly contradicts the overall NEUTRAL verdict, which implies balanced risk and reward; instead, the metric points to a higher-risk profile that investors should weigh carefully.

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