The Boeing Company (BA)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 109,275,000 | 109,523,000 | 108,666,000 | 121,642,000 | 102,229,000 |
| Total current liabilities | US$ in thousands | 95,827,000 | 90,052,000 | 81,992,000 | 87,280,000 | 97,312,000 |
| Current ratio | 1.14 | 1.22 | 1.33 | 1.39 | 1.05 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $109,275,000K ÷ $95,827,000K
= 1.14
The current ratio of Boeing Co. has fluctuated over the past five years. The ratio measures the company's ability to meet its short-term obligations with its short-term assets. A higher current ratio is generally seen as favorable as it suggests a stronger ability to cover short-term liabilities.
Looking at the trend, the current ratio has decreased from 1.03 in 2019 to 1.14 in 2023, with intermittent fluctuations in between. This downward trend indicates that Boeing Co. may be experiencing challenges in maintaining a comfortable level of short-term liquidity to cover its current liabilities.
While a current ratio above 1.0 indicates the company has more current assets than current liabilities, the decreasing trend suggests a potential need for Boeing Co. to evaluate its working capital management and liquidity position to ensure it can comfortably meet its short-term financial obligations.
Peer comparison
Dec 31, 2023