The Boeing Company (BA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 2,631,000 | 2,649,000 | 2,517,000 | 2,641,000 | 1,955,000 |
| Total current liabilities | US$ in thousands | 97,078,000 | 95,827,000 | 90,052,000 | 81,992,000 | 87,280,000 |
| Quick ratio | 0.30 | 0.19 | 0.22 | 0.23 | 0.32 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($13,801,000K
+ $12,481,000K
+ $2,631,000K)
÷ $97,078,000K
= 0.30
The quick ratio of The Boeing Company has shown a declining trend over the past five years, decreasing from 0.32 at the end of December 31, 2020, to 0.30 at the end of December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its current liquid assets alone. In this case, The Boeing Company's quick ratio has consistently been below 1 during the period, which may raise concerns about its liquidity position and ability to cover short-term liabilities without relying on additional sources of funding.
The decreasing trend in the quick ratio over the years suggests that The Boeing Company may be facing challenges in maintaining sufficient liquid assets relative to its current liabilities. Investors and stakeholders may closely monitor this ratio to assess the company's financial health and ability to manage its short-term financial obligations effectively. It would be advisable for the company to focus on improving its liquidity position to enhance its financial stability and mitigate potential liquidity risks.
Peer comparison
Dec 31, 2024