The Boeing Company (BA)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.93 | 7.23 | 7.12 | 6.78 | 6.54 | 6.09 | 5.66 | 5.59 | 5.53 | 5.83 | 5.62 | 5.22 | 5.52 | 5.22 | 5.54 | 6.21 | 6.80 | 7.73 | 8.12 | 8.23 | |
| DOH | days | 52.67 | 50.50 | 51.26 | 53.85 | 55.84 | 59.94 | 64.49 | 65.34 | 66.00 | 62.65 | 64.99 | 69.90 | 66.10 | 69.91 | 65.87 | 58.75 | 53.70 | 47.20 | 44.95 | 44.35 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.93
= 52.67
To analyze Boeing Co.'s days of inventory on hand (DOH) over the past eight quarters, we can observe a general trend of increasing DOH from 415.38 days at the end of December 2022 to 493.16 days at the end of March 2022. This indicates that it took Boeing Co. longer to sell its inventory over this period.
The rising trend in DOH suggests inefficiencies in inventory management or potential challenges in sales and demand forecasting. A higher DOH may be indicative of excess inventory and could lead to increased carrying costs, storage expenses, and risk of obsolescence.
It is important for the company to closely monitor and actively manage its inventory levels to optimize working capital and ensure that its inventory turnover remains healthy. Additionally, a thorough assessment of production and supply chain processes may be needed to address the increasing DOH trend and improve inventory management efficiencies.
Peer comparison
Dec 31, 2023
See also:
The Boeing Company Average Inventory Processing Period (Quarterly Data)