The Boeing Company (BA)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 13,801,000 | 12,691,000 | 14,614,000 | 8,052,000 | 7,752,000 |
| Short-term investments | US$ in thousands | 12,481,000 | 3,274,000 | 2,606,000 | 8,192,000 | 17,838,000 |
| Total current liabilities | US$ in thousands | 97,078,000 | 95,827,000 | 90,052,000 | 81,992,000 | 87,280,000 |
| Cash ratio | 0.27 | 0.17 | 0.19 | 0.20 | 0.29 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($13,801,000K
+ $12,481,000K)
÷ $97,078,000K
= 0.27
The Cash Ratio of The Boeing Company has shown a declining trend from 0.29 as of December 31, 2020, to 0.27 as of December 31, 2024. This ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally preferred as it suggests a stronger ability to meet short-term obligations without relying on external sources of funding.
The declining trend in Boeing's Cash Ratio over the years could indicate potential liquidity challenges or a decrease in the proportion of liquid assets relative to short-term liabilities. It is important for the company to closely monitor its cash position and liquidity management to ensure it can meet its financial obligations in a timely manner. Further analysis of the company's cash flow and working capital management may provide additional insights into the underlying factors driving this trend in the Cash Ratio.
Overall, the declining Cash Ratio of The Boeing Company raises concerns about its short-term liquidity position and underscores the importance of effective cash management in sustaining financial stability.
Peer comparison
Dec 31, 2024