Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
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- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
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Liquidity Ratios (Summary)
Boeing Co., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Current Ratio
- The current ratio exhibits a general declining trend from 1.39 in 2020 to a low of 1.14 in 2023, indicating a gradual decrease in the company's short-term liquidity over this period. However, there is a noticeable recovery in 2024, with the ratio rising to 1.32, suggesting an improved ability to cover current liabilities with current assets during the latest year reported.
- Quick Ratio
- The quick ratio consistently decreases from 0.41 in 2020 to a trough of 0.28 in 2023, signaling a declining level of liquid assets relative to current liabilities, excluding inventory. This downward movement points to a reduction in the most liquid assets over these years. In 2024, the quick ratio rebounds to 0.39, reflecting an enhancement in immediate liquidity after several years of decline.
- Cash Ratio
- Similarly, the cash ratio moves downward from 0.29 in 2020 to 0.17 in 2023, indicating a reduced proportion of cash and cash equivalents relative to current liabilities. This suggests tighter cash positions during these years. The ratio then increases to 0.27 in 2024, indicative of strengthened cash reserves compared to prior years.
Current Ratio
Boeing Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Current Ratio, Sector | ||||||
| Capital Goods | ||||||
| Current Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data exhibits varying trends in key liquidity metrics over the examined period, reflecting changes in the organization's short-term financial health.
- Current Assets
- Current assets showed a decline from 121,642 million US dollars at the end of 2020 to 108,666 million US dollars in 2021, followed by a marginal increase in 2022 and a slight decrease in 2023. However, there was a notable rise again in 2024, reaching 127,998 million US dollars, the highest value in the observed timeframe.
- Current Liabilities
- Current liabilities initially decreased from 87,280 million US dollars in 2020 to 81,992 million US dollars in 2021. Subsequently, they steadily increased each year, rising to 90,052 million in 2022, 95,827 million in 2023, and reaching 97,078 million in 2024. This consistent upward trend in liabilities suggests increasing short-term obligations over the last three years.
- Current Ratio
- The current ratio, an indicator of short-term liquidity, declined from 1.39 in 2020 to a low of 1.14 in 2023, highlighting a deteriorating ability to cover current liabilities with current assets during this period. In 2024, there was a recovery to 1.32, indicating an improved liquidity position compared to the prior two years, though still below the initial 2020 level.
Overall, the company experienced a reduction in liquidity from 2020 through 2023, as evidenced by declining current assets and a falling current ratio despite fluctuations in current liabilities. The increase in current liabilities from 2021 onward, combined with the initial decrease in current assets, contributed to this trend. The rebound in current assets and the current ratio in 2024 suggests a positive shift toward strengthening short-term financial stability.
Quick Ratio
Boeing Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Short-term and other investments | ||||||
| Accounts receivable, net | ||||||
| Unbilled receivables, net | ||||||
| Current portion of financing receivables, net | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Quick Ratio, Sector | ||||||
| Capital Goods | ||||||
| Quick Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibited a fluctuating trend over the observed periods. Starting at 35,641 million USD at the end of 2020, there was a noticeable decline to 27,622 million USD by the end of 2021, followed by a slight increase to 28,525 million USD in 2022. This was succeeded by another decrease to 27,030 million USD in 2023. However, a significant recovery occurred in 2024, with total quick assets rising sharply to 37,483 million USD, surpassing the initial 2020 value.
- Current Liabilities
- Current liabilities displayed an overall increasing trend throughout the period. Beginning at 87,280 million USD in 2020, liabilities decreased somewhat to 81,992 million USD in 2021 but then rose steadily each subsequent year: 90,052 million USD in 2022, 95,827 million USD in 2023, and reaching 97,078 million USD by the end of 2024. The general escalation in current liabilities suggests increasing short-term financial obligations over time.
- Quick Ratio
- The quick ratio followed a downward trend from 0.41 in 2020 to a low of 0.28 in 2023, reflecting a gradual reduction in short-term liquidity relative to current liabilities. However, in 2024, the quick ratio improved markedly to 0.39, indicating a recovery in the company's ability to cover its short-term liabilities with its most liquid assets. Despite this improvement, the quick ratio remained below the 2020 level.
- Overall Analysis
- The data reflects a period characterized by volatility in quick assets and rising current liabilities, exerting pressure on liquidity as evident from the declining quick ratio until 2023. The significant rebound in total quick assets and the quick ratio in 2024 suggests effective measures were taken to strengthen liquidity, mitigating some of the risks associated with high current liabilities. Nevertheless, the quick ratio remaining below the initial 2020 level implies that while liquidity improved, it has not fully returned to earlier stronger levels.
Cash Ratio
Boeing Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Short-term and other investments | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Cash Ratio, Sector | ||||||
| Capital Goods | ||||||
| Cash Ratio, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets demonstrated a fluctuating trend over the five-year period. Starting at 25,590 million USD at the end of 2020, there was a significant decline in 2021 to 16,244 million USD. This was followed by a modest increase in 2022 to 17,220 million USD, then a slight decrease in 2023 to 15,965 million USD. By the end of 2024, the total cash assets rose sharply to 26,282 million USD, surpassing the initial value in 2020. This indicates a recovery and a strong increase in liquidity in the latest period.
- Current liabilities
- Current liabilities exhibited a generally increasing trend, starting at 87,280 million USD in 2020. There was a decrease in 2021 to 81,992 million USD, followed by consistent increases in the subsequent years: 90,052 million USD in 2022, 95,827 million USD in 2023, and 97,078 million USD in 2024. The overall uptrend after 2021 suggests growing short-term obligations which may impact the company’s liquidity management.
- Cash ratio
- The cash ratio declined steadily from 0.29 in 2020 to a low of 0.17 in 2023, reflecting a decrease in readily available cash relative to current liabilities. However, in 2024, the cash ratio increased to 0.27, nearly returning to the 2020 level. This improvement aligns with the notable increase in total cash assets in 2024, indicating enhanced capacity to cover short-term liabilities with cash and cash equivalents in the latest year.
- Summary
- Over the examined period, the company experienced a liquidity contraction from 2020 through 2023, as indicated by the decline in total cash assets and the cash ratio, despite fluctuations in current liabilities. The rebound in cash assets and the cash ratio in 2024 signals a recovery in liquidity. Concurrently, current liabilities increased overall, necessitating careful monitoring of short-term obligations. The trends suggest an improvement in immediate liquidity by the end of 2024, which may positively affect the company’s financial flexibility.