The Boeing Company (BA)
Liquidity ratios
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.32 | 1.12 | 1.18 | 1.14 | 1.14 | 1.15 | 1.17 | 1.16 | 1.22 | 1.22 | 1.25 | 1.30 | 1.33 | 1.36 | 1.35 | 1.33 | 1.39 | 1.42 | 1.41 | 1.17 |
| Quick ratio | 0.30 | 0.14 | 0.16 | 0.11 | 0.19 | 0.18 | 0.18 | 0.19 | 0.22 | 0.19 | 0.17 | 0.18 | 0.23 | 0.26 | 0.27 | 0.27 | 0.32 | 0.32 | 0.38 | 0.20 |
| Cash ratio | 0.27 | 0.11 | 0.13 | 0.08 | 0.17 | 0.14 | 0.15 | 0.16 | 0.19 | 0.16 | 0.14 | 0.15 | 0.20 | 0.23 | 0.24 | 0.24 | 0.29 | 0.29 | 0.35 | 0.16 |
The Boeing Company's liquidity ratios have shown a mixed trend over the past few years.
- The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has fluctuated slightly but generally remained above 1, indicating that Boeing has sufficient current assets to meet its short-term obligations.
- The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown a decreasing trend over the period. This may suggest that Boeing may have increasing difficulty meeting its short-term obligations without relying on inventory.
- The cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents, also exhibited a declining trend. This indicates that Boeing's ability to meet its short-term obligations solely with cash has decreased over the period.
Overall, Boeing's liquidity ratios show that while the company has maintained a current ratio above 1, indicating decent short-term liquidity, the decreasing quick ratio and cash ratio suggest potential challenges in meeting immediate obligations without relying on inventory or other current assets. It would be important for Boeing to closely monitor its liquidity position and manage its working capital effectively to ensure it can meet its obligations in a timely manner.
See also:
Additional liquidity measure
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 13.47 | 4.09 | 6.40 | 5.92 | 2.78 | 6.07 | 7.78 | 11.38 | 10.64 | 18.42 | 23.32 | 25.51 | 24.44 | 16.85 | 12.85 | 10.73 | 4.46 | 0.65 | 4.70 | -2.42 |
The cash conversion cycle of The Boeing Company has experienced fluctuations over the reported periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash received from customers.
From March 2020 to December 2024, the cash conversion cycle for Boeing ranged from -2.42 days to 25.51 days. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers, which can be advantageous for liquidity.
Boeing's cash conversion cycle increased from a negative value in March 2020 to over 25 days by March 2022, indicating a significant increase in the time it took the company to convert its investments into cash. Subsequently, the cash conversion cycle reduced to around 4 days by June 2024, indicating an improvement in the company's efficiency in managing its working capital.
Overall, Boeing's cash conversion cycle has shown variability, which could be influenced by factors such as changes in sales volumes, inventory management practices, and payment terms with suppliers and customers. Keeping the cash conversion cycle at an optimal level is crucial for managing liquidity effectively and ensuring the company's financial health.