The Boeing Company (BA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 12,691,000 | 14,614,000 | 8,052,000 | 7,752,000 | 9,485,000 |
| Short-term investments | US$ in thousands | 3,274,000 | 2,606,000 | 8,192,000 | 17,838,000 | 545,000 |
| Total current liabilities | US$ in thousands | 95,827,000 | 90,052,000 | 81,992,000 | 87,280,000 | 97,312,000 |
| Cash ratio | 0.17 | 0.19 | 0.20 | 0.29 | 0.10 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($12,691,000K
+ $3,274,000K)
÷ $95,827,000K
= 0.17
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates better liquidity and ability to meet short-term obligations.
Boeing Co.'s cash ratio has shown fluctuations over the past five years, decreasing from 0.34 in 2020 to 0.19 in 2023. In 2019, the ratio was particularly low at 0.13.
The decreasing trend in the cash ratio could imply that Boeing Co.'s ability to meet its short-term obligations with its readily available cash and cash equivalents has weakened over the years. This could be a cause for concern as it may indicate potential difficulties in meeting short-term financial commitments.
Further analysis involving other liquidity and solvency measures would be necessary to gain a more comprehensive understanding of Boeing Co.'s overall financial health and liquidity position.
Peer comparison
Dec 31, 2023