The Boeing Company (BA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 70,070,000 | 63,078,000 | 59,269,000 | 63,843,000 | 72,093,000 |
| Inventory | US$ in thousands | 10,112,000 | 9,655,000 | 10,717,000 | 11,562,000 | 10,606,000 |
| Inventory turnover | 6.93 | 6.53 | 5.53 | 5.52 | 6.80 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $70,070,000K ÷ $10,112,000K
= 6.93
The inventory turnover for Boeing Co. over the past five years has exhibited some fluctuations. In 2023, the inventory turnover stood at 0.88, a slight increase from the previous year's 0.81. This indicates that Boeing Co. converted its inventory into sales more efficiently in 2023 compared to 2022. However, it is important to note that the inventory turnover has generally been on a downward trend since 2019 when it was at 0.94.
A lower inventory turnover may suggest that Boeing Co. is experiencing challenges in managing its inventory levels or is facing difficulties in selling its products. This could potentially lead to higher carrying costs and obsolete inventory, which can impact the company's profitability and cash flows.
Further analysis of the inventory turnover trend in conjunction with other financial and operational metrics would be valuable in gaining a comprehensive understanding of Boeing Co.'s overall inventory management and operational efficiency.
Peer comparison
Dec 31, 2023