Liquidity Analysis

Difficulty level: Basic

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


Ratios (Summary)

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.

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Current Ratio

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 1.23 1.27 1.26 1.26 1.21
Current Ratio, Industry
Industrials 1.28 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.

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Quick Ratio

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 0.47 0.51 0.52 0.55 0.55
Quick Ratio, Industry
Industrials 0.74 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.

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Cash Ratio

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 0.23 0.27 0.27 0.29 0.27
Cash Ratio, Industry
Industrials 0.32 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.

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