JetBlue Airways Corp (JBLU)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.60 | 0.53 | 0.57 | 0.52 | 0.51 | 0.67 | 0.74 | 0.81 | 0.95 | 1.03 | 1.06 | 1.15 | 1.25 | 1.23 | 0.95 | 0.61 | 0.67 | 0.53 | 0.51 | 0.53 |
| Quick ratio | 0.52 | 0.46 | 0.51 | 0.47 | 0.46 | 0.62 | 0.69 | 0.75 | 0.89 | 0.98 | 1.01 | 1.08 | 1.20 | 1.11 | 0.75 | 0.52 | 0.59 | 0.45 | 0.41 | 0.43 |
| Cash ratio | 0.43 | 0.37 | 0.43 | 0.38 | 0.37 | 0.54 | 0.62 | 0.69 | 0.83 | 0.92 | 0.94 | 1.03 | 1.16 | 1.08 | 0.73 | 0.50 | 0.50 | 0.36 | 0.31 | 0.31 |
Jetblue Airways Corp's liquidity ratios have fluctuated over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has shown a decreasing trend, dropping from 0.81 in Q1 2022 to 0.60 in Q4 2023. This suggests that Jetblue may be facing challenges in meeting its short-term financial obligations.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also declined over the quarters, indicating a decrease in the company's ability to quickly meet its short-term obligations without relying on inventory.
The cash ratio, which reflects the company's ability to cover its current liabilities with its cash and cash equivalents, has followed a similar downward trend. The decreasing cash ratio from 0.73 in Q1 2022 to 0.47 in Q4 2023 highlights the diminishing ability of Jetblue to meet its short-term obligations solely with its readily available cash resources.
Overall, the declining trend in Jetblue Airways Corp's liquidity ratios signals a potential liquidity risk for the company. It is essential for Jetblue to closely monitor its liquidity position and implement strategies to improve its ability to meet short-term financial obligations promptly.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -12.90 | -16.21 | -18.08 | -13.43 | -9.08 | -14.28 | -15.01 | -21.56 | -16.80 | -23.80 | -11.05 | -3.42 | -14.28 | -19.50 | -14.62 | -16.96 | -10.45 | -12.22 | -13.19 | -9.23 |
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Jetblue Airways Corp, the cash conversion cycle has shown some fluctuations over the past eight quarters.
In Q2 2022, the cash conversion cycle was at its highest at 13.30 days, indicating that Jetblue took longer to convert its investments into cash during that period. However, this metric decreased in subsequent quarters until Q2 2023 when it reached its lowest point at 11.38 days. This suggests that the company improved its efficiency in managing its working capital and converting resources into cash during this time.
Overall, Jetblue Airways Corp has demonstrated a relatively stable cash conversion cycle performance, hovering around the 12-day mark for most quarters. Maintaining a lower cash conversion cycle is generally considered favorable as it indicates that the company is operating efficiently and able to quickly generate cash from its operations.