Boeing Co. (NYSE:BA)

The financial ratios over the analyzed periods indicate distinct patterns in liquidity and short-term financial stability.

Current Ratio

The current ratio exhibited an initial increase from 1.17 at the end of the first quarter in 2020 to a peak near 1.42 by September 2020. Subsequently, the ratio stabilized around the range of 1.3 to 1.35 throughout 2021, followed by a gradual decline through 2022 and early 2023, reaching a low near 1.14 by the end of 2023. Some recovery was observed afterwards, with the ratio rising again to above 1.3 by mid-2024 before a slight decline by the first quarter of 2025. This suggests a general trend of slightly decreasing liquidity over time, with some volatility and partial recovery in recent quarters.

Quick Ratio

The quick ratio showed more pronounced fluctuations. Starting at a relatively low 0.3 in March 2020, it increased significantly to nearly 0.47 by mid-2020, then declined steadily through 2022 and 2023, falling to values around 0.28 or below, indicating reduced ability to cover current liabilities without relying on inventory. A notable improvement appeared at the end of 2024, with ratios climbing back above 0.35 and maintaining levels higher than the preceding declining phase. Overall, the quick ratio trend points to variability in liquid asset availability, with a downward phase followed by recent improvement.

Cash Ratio

The cash ratio followed a somewhat similar pattern to the quick ratio but remained consistently lower throughout the periods. It increased sharply from 0.16 in early 2020 to about 0.35 in June 2020, then gradually diminished to lows near 0.08 in early 2024. From mid-2024 onwards, the cash ratio showed recovery, rising again to approximately 0.23 by the first quarter of 2025. This indicates fluctuations in the most liquid assets held, reflecting changes in immediate cash availability relative to current liabilities.

In summary, all three liquidity ratios demonstrate an improvement during the middle of 2020, followed by a general declining trend through 2022 and early 2024, reflecting tightening liquidity conditions. The latter part of the data set shows signs of recovery in liquidity, particularly from mid-2024 onwards, suggesting improved short-term financial positioning at the latest measured intervals.

The quarterly financial data exhibit notable trends in current assets, current liabilities, and the current ratio over the analyzed periods.

Current Assets

The current assets demonstrate a variable yet generally stable pattern. Starting at approximately $111 billion in the first quarter of 2020, current assets increased to peak around $130 billion by mid-2020. Subsequently, there is a gradual decline observed through 2021, reaching a low of about $106 billion in the first quarter of 2022. After this period, the assets stabilize around the $108-110 billion range for several quarters. From the beginning of 2024 onward, there is a noticeable upward movement, with current assets rising back above $120 billion by early 2025. This suggests an overall recovery or growth phase in short-term asset holdings following a period of contraction and stabilization.

Current Liabilities

Current liabilities show a downward trend at the outset, decreasing from approximately $94.5 billion in early 2020 to about $82 billion by the end of 2021. Following this low point, liabilities exhibit a gradual increasing trend, reaching a high of roughly $103.6 billion by the first quarter of 2025. This increase in liabilities toward the end of the period contrasts with the prior decline and may indicate increased short-term obligations or borrowing.

Current Ratio

The current ratio begins at 1.17 in early 2020 and improves notably to values exceeding 1.4 by mid to late 2020, reflecting a period of strengthened liquidity where current assets sufficiently cover current liabilities. However, from 2021 across the next several quarters, a declining trend emerges, with the ratio falling and fluctuating around the 1.1 to 1.2 mark. This decrease points to tightening liquidity conditions. Nevertheless, a slight recovery is evident in early 2024 when the ratio briefly rises above 1.3 before settling again near 1.2 by early 2025. Despite fluctuations, the current ratio remains above 1.0 throughout the entire timeframe, indicating that short-term asset coverage over liabilities is maintained, albeit with varying degrees of buffer.

In summary, the data reveal an initial period of strengthening liquidity through increased current assets and reduced liabilities, followed by a phase of stabilization and modest contraction. More recently, increases in both current assets and liabilities, along with a partially recovered current ratio, suggest dynamic management of working capital and ongoing adjustments in financial positioning.

Total quick assets

The total quick assets exhibit notable volatility over the observed periods. Initially, there is a considerable increase from approximately 28.3 billion USD at the end of Q1 2020 to a peak nearing 44 billion USD in Q2 2020. This is followed by a gradual decline through the end of 2021, reaching a low around 27.6 billion USD in Q4 2021. Subsequently, the figure continues to fluctuate with a downward trend until Q1 2024, where it dips near 20.2 billion USD, the lowest recorded in the dataset. In the final quarters, there is a marked recovery, with quick assets rising sharply to above 37 billion USD in Q4 2024 and sustaining elevated levels thereafter. Overall, total quick assets demonstrate cyclical movements with a trough in early 2024 and a recovery phase at the end of the period.

Current liabilities

Current liabilities maintain relatively high levels throughout the timeline, starting around 94.5 billion USD in Q1 2020. There is a slight decreasing trend from early 2020 into late 2021, reaching just under 82 billion USD in Q4 2021. After this period, liabilities gradually increase once again, crossing the 90 billion USD mark in 2022 and continuing to rise, peaking above 103 billion USD in Q1 2025. The data suggests overall growth in current liabilities toward the later periods, indicating increased short-term obligations.

Quick ratio

The quick ratio follows a downward trajectory from an initial level of 0.3 in Q1 2020 to a lower range around 0.28 by late 2021. The ratio slightly declines further, reaching a trough near 0.22 in Q2 2024, reflecting relatively weaker liquidity during this interval. However, in the final quarters, there is an improvement in the ratio, climbing back to approximately 0.39 in Q1 2025. This pattern indicates that liquidity, as measured by the quick ratio, weakened through the middle periods but showed signs of strengthening toward the end of the series.

Summary

The analysis reveals a general pattern of fluctuating liquidity and rising short-term liabilities. Total quick assets initially increase sharply but experience extended periods of decline and volatility before rebounding strongly in the last quarters. Meanwhile, current liabilities trend downward initially but then increase steadily reaching their highest levels in the final periods. The quick ratio's decline through much of the timeline suggests liquidity constraints, with partial recovery occurring toward the end. Taken together, these trends may reflect business cycles impacting asset and liability management, with liquidity pressures easing in the most recent quarters as quick assets rise against a backdrop of increased liabilities.

Cash Assets Trend

The total cash assets demonstrate significant volatility over the analyzed periods. There was a notable surge from March 31, 2020 (15,527 million USD) to June 30, 2020 (32,430 million USD), followed by a decline through the end of 2020. The first half of 2021 shows a downward trend with cash assets steadily decreasing. The year 2022 begins with a low point (12,282 million USD) but exhibits a gradual recovery, peaking in December 2022 (17,220 million USD). Subsequently, total cash decreased again in early 2023 but rose towards the end of that year. The trend in 2024 is marked by considerable fluctuations, with a pronounced low at June 30, 2024 (7,529 million USD), followed by a sharp recovery by year-end and March 2025, ending with 23,674 million USD.

Current Liabilities Trend

Current liabilities remained high throughout the period, consistently fluctuating around a range of approximately 81,600 to 103,600 million USD. The data reveals an initial gradual decline from March 31, 2020 (94,502 million USD) to December 31, 2020 (87,280 million USD), followed by relatively stable values through 2021 and 2022, oscillating mostly in the mid-80,000 to mid-90,000 million USD range. Starting from the end of 2023 and into 2024, current liabilities trend upward, peaking at 103,654 million USD by March 31, 2025.

Cash Ratio Analysis

The cash ratio, representing the company's short-term liquidity resilience, exhibits a fluctuating but generally low trend across the periods. It peaked at 0.35 in June 2020, coinciding with the highest cash assets observed, and then steadily declined through the remainder of 2020. In 2021, the ratio fell slightly below 0.20, stabilizing mostly between 0.14 and 0.20 until early 2023. A notable dip to 0.08 occurs in June 2024, reflecting the lowest liquidity position in the sample. The ratio somewhat recovers to 0.27 by December 2024 before settling again at 0.23 in March 2025. This indicates an overall tight liquidity position with periods of improvement but no sustained strong liquidity buffer.

Overall Financial Position Insights

The data indicates a company navigating a challenging liquidity environment with high current liabilities relative to cash assets. Despite occasional recoveries in cash positions, the cash ratio remains low, underscoring limited liquid asset coverage of short-term obligations. The volatility in cash assets suggests fluctuating cash management or operational cash flows. The increasing trend in current liabilities towards the end of the period suggests increasing short-term financial obligations, potentially increasing liquidity risk if not matched by cash or other liquid asset growth.