The Boeing Company (BA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 68,508,000 | 70,070,000 | 63,078,000 | 59,269,000 | 63,843,000 |
| Inventory | US$ in thousands | 11,182,000 | 10,112,000 | 9,655,000 | 10,717,000 | 11,562,000 |
| Inventory turnover | 6.13 | 6.93 | 6.53 | 5.53 | 5.52 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $68,508,000K ÷ $11,182,000K
= 6.13
The inventory turnover ratio for The Boeing Company has shown a gradual increase over the past five years. The ratio was 5.52 times in December 31, 2020, and slightly increased to 5.53 times by December 31, 2021. A more significant improvement was noted by December 31, 2022, where the ratio jumped to 6.53 times, indicating that Boeing was able to sell and replace its inventory more efficiently.
However, there was a further increase by December 31, 2023, with the turnover ratio reaching 6.93 times, signaling an even more efficient management of inventory during that period. The ratio slightly dipped to 6.13 times by December 31, 2024, which may indicate potential changes in Boeing's inventory management strategies or market conditions that affected the turnover rate.
Overall, the trend suggests that Boeing has been managing its inventory effectively and improving its turnover rate over the years, which is a positive indicator of operational efficiency and liquidity management.
Peer comparison
Dec 31, 2024