The Boeing Company (BA)

The days of sales outstanding (DSO) measure the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates faster collection of revenue, which can be a sign of effective credit and collections management.

Looking at the DSO trend for Boeing Co., we observe a fluctuating pattern over the past five years. In 2019, the DSO was 58.68 days, which increased to 62.45 days in 2020, indicating a slight delay in collecting sales revenue. However, in 2021, the DSO further increased to 65.99 days, reflecting a more prolonged collection period.

The trend shifted in 2022, as the DSO decreased to 61.11 days, indicating a more efficient collection process compared to the previous year. This trend continued in 2023, where the DSO reduced to 51.45 days, implying a notable improvement in collecting revenue after sales.

The fluctuation in DSO over the years suggests that Boeing Co. has faced challenges in managing its accounts receivable and collecting revenue promptly. The recent improvement in DSO may be indicative of enhanced credit and collections management, contributing to a more efficient working capital cycle.

Overall, while the recent reduction in DSO is positive, it would be important to monitor this trend closely to ensure that Boeing Co. maintains efficient collections practices and continues to improve its days of sales outstanding.

Peer comparison

Dec 31, 2023

See also:

The Boeing Company Average Receivable Collection Period