JetBlue Airways Corp (JBLU)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 0.60 | 0.51 | 0.95 | 1.25 | 0.67 |
| Quick ratio | 0.52 | 0.46 | 0.89 | 1.20 | 0.59 |
| Cash ratio | 0.43 | 0.37 | 0.83 | 1.16 | 0.50 |
The liquidity ratios of Jetblue Airways Corp have depicted a fluctuating trend over the past five years. The current ratio, which measures the company's ability to meet short-term liabilities with its current assets, has shown a declining pattern from 2019 to 2023. The ratio stood at 0.60 in 2023, implying that the company may face challenges in meeting its short-term obligations with its current assets.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited a decreasing trend from 2019 to 2023. With a ratio of 0.57 in 2023, Jetblue Airways Corp may struggle to meet its immediate liabilities without relying on inventory.
The cash ratio, which indicates the firm's ability to cover current liabilities with its cash and cash equivalents, has also shown a downward movement over the past five years. At a ratio of 0.47 in 2023, the company appears to have a lower cash reserve relative to its short-term obligations, signaling a potential liquidity risk.
Overall, the declining trend in Jetblue Airways Corp's liquidity ratios suggests a deteriorating ability to meet its short-term liabilities with current assets, cash, and cash equivalents. It may be prudent for the company to closely monitor its liquidity position and take necessary steps to improve its liquidity management in order to mitigate potential financial risks.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -12.89 | -9.07 | -16.58 | -13.68 | -10.45 |
Jetblue Airways Corp's cash conversion cycle has shown a slight increasing trend over the past five years, ranging from 10.42 days in 2019 to 12.76 days in 2023. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and receivables back into cash. A longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.
Jetblue's relatively stable cash conversion cycle suggests the company has been effective in managing its working capital during this period. However, the slight increase in the cycle over the years may indicate a need for the company to streamline its operations to reduce the time it takes to convert investments into cash. Monitoring and managing the cash conversion cycle can help Jetblue improve its liquidity and overall financial performance.