Boeing Co. (BA)

Liquidity Analysis

Difficulty level: Basic

Liquidity ratios measure the company's ability to meet its short-term obligations.

Boeing Co., liquidity ratios

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Current ratio	1.20	1.26	1.27	1.21	1.15
Quick ratio	0.37	0.43	0.43	0.42	0.46
Cash ratio	0.23	0.30	0.30	0.27	0.30

Source: Based on data from Boeing Co. Annual Reports

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Boeing Co.'s current ratio deteriorated from 2012 to 2013 and from 2013 to 2014.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Boeing Co.'s quick ratio deteriorated from 2012 to 2013 and from 2013 to 2014.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Boeing Co.'s cash ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Boeing Co., current ratio calculation, comparison to benchmarks

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (USD $ in millions)
Current assets	67,785	65,074	57,309	49,810	40,572
Current liabilities	56,717	51,486	44,982	41,274	35,395
Ratio
Current ratio¹	1.20	1.26	1.27	1.21	1.15
Benchmarks
Current Ratio, Competitors
United Technologies Corp.	1.30	1.29	1.24	1.38	1.33
Current Ratio, Sector
Aerospace	–	1.27	1.26	1.26	1.21
Current Ratio, Industry
Industrials	–	1.32	1.30	1.26	1.33

Source: Based on data from Boeing Co. Annual Reports

2014 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 67,785 ÷ 56,717 = 1.20

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Boeing Co.'s current ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Boeing Co., quick ratio calculation, comparison to benchmarks

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	11,733	9,088	10,341	10,049	5,359
Short-term and other investments	1,359	6,170	3,217	1,223	5,158
Accounts receivable, net	7,729	6,546	5,608	5,793	5,422
Current portion of customer financing, net	190	344	364	476	285
Total quick assets	21,011	22,148	19,530	17,541	16,224
Current liabilities	56,717	51,486	44,982	41,274	35,395
Ratio
Quick ratio¹	0.37	0.43	0.43	0.42	0.46
Benchmarks
Quick Ratio, Competitors
United Technologies Corp.	0.72	0.71	0.67	0.83	0.73
Quick Ratio, Sector
Aerospace	–	0.51	0.52	0.55	0.55
Quick Ratio, Industry
Industrials	–	0.78	0.77	0.74	0.83

Source: Based on data from Boeing Co. Annual Reports

2014 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 21,011 ÷ 56,717 = 0.37

Ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Boeing Co.'s quick ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Boeing Co., cash ratio calculation, comparison to benchmarks

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	11,733	9,088	10,341	10,049	5,359
Short-term and other investments	1,359	6,170	3,217	1,223	5,158
Total cash assets	13,092	15,258	13,558	11,272	10,517
Current liabilities	56,717	51,486	44,982	41,274	35,395
Ratio
Cash ratio¹	0.23	0.30	0.30	0.27	0.30
Benchmarks
Cash Ratio, Competitors
United Technologies Corp.	0.23	0.20	0.20	0.32	0.23
Cash Ratio, Sector
Aerospace	–	0.27	0.27	0.29	0.27
Cash Ratio, Industry
Industrials	–	0.35	0.35	0.29	0.37

Source: Based on data from Boeing Co. Annual Reports

2014 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 13,092 ÷ 56,717 = 0.23

Ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Boeing Co.'s cash ratio deteriorated from 2012 to 2013 and from 2013 to 2014.