The Boeing Company (BA)
Days of sales outstanding (DSO)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Receivables turnover | 25.28 | 29.37 | 26.46 | 23.58 | 29.75 | |
DSO | days | 14.44 | 12.43 | 13.79 | 15.48 | 12.27 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 25.28
= 14.44
Days Sales Outstanding (DSO) is a key efficiency ratio that indicates how long, on average, it takes for a company to collect payments after making a sale. A lower DSO indicates faster cash collection, which is generally favorable.
Analyzing the DSO trend for The Boeing Company, we observe the following:
1. As of December 31, 2020, The Boeing Company had a DSO of 12.27 days, suggesting efficient cash collection processes.
2. By December 31, 2021, the DSO increased to 15.48 days, indicating a slight delay in customer payments compared to the previous year.
3. In 2022, the DSO decreased to 13.79 days, showing an improvement in cash collection efficiency compared to the prior year.
4. By December 31, 2023, the DSO further decreased to 12.43 days, reflecting a positive trend towards faster cash collection.
5. As of the most recent data on December 31, 2024, the DSO increased to 14.44 days, which is still relatively low in comparison to previous years but indicates a slight delay in cash collection compared to the preceding year.
In summary, the DSO trend of The Boeing Company shows fluctuations over the years, with some improvements and minor setbacks. It is crucial for the company to monitor and manage its DSO effectively to ensure efficient working capital management and maintain healthy cash flows.
Peer comparison
Dec 31, 2024