The Boeing Company (BA)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 68,508,000 | 70,998,000 | 66,590,000 | 68,765,000 | 70,070,000 | 68,893,000 | 68,725,000 | 65,466,000 | 63,106,000 | 62,269,000 | 59,064,000 | 59,099,000 | 59,269,000 | 62,954,000 | 62,493,000 | 60,883,000 | 63,843,000 | 61,559,000 | 65,384,000 | 70,216,000 |
| Inventory | US$ in thousands | 11,182,000 | 10,259,000 | 10,176,000 | 10,069,000 | 10,112,000 | 9,531,000 | 9,651,000 | 9,658,000 | 9,655,000 | 10,225,000 | 10,436,000 | 10,580,000 | 10,717,000 | 10,805,000 | 11,127,000 | 11,660,000 | 11,562,000 | 11,791,000 | 11,800,000 | 11,301,000 |
| Inventory turnover | 6.13 | 6.92 | 6.54 | 6.83 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $68,508,000K ÷ $11,182,000K
= 6.13
Based on the inventory turnover data provided for The Boeing Company, we can observe fluctuations in the efficiency of managing inventory over the analyzed periods.
The inventory turnover ratio indicates how many times a company's inventory is sold and replaced within a specific period. A higher turnover ratio is generally considered more favorable as it suggests that inventory is being sold quickly, minimizing the holding costs and potential risks of obsolescence.
From March 31, 2020, to December 31, 2024, Boeing's inventory turnover ranged between 5.22 and 7.23 times. The company's inventory turnover showed an increasing trend from 2020 to 2023, reaching its peak of 7.23 times on September 30, 2023. A high turnover ratio like this could be interpreted positively, indicating efficient inventory management or potentially strong sales.
However, the inventory turnover ratio decreased slightly to 6.13 times on December 31, 2024, which may suggest a slower rate of inventory turnover compared to previous periods. A declining turnover ratio could imply excess inventory, potential sales challenges, or changes in demand dynamics that need to be addressed.
Overall, while Boeing's inventory turnover performance has shown fluctuations, it is essential for the company to continually monitor and optimize its inventory management practices to maintain an optimal balance between holding costs, sales efficiency, and customer demand.
Peer comparison
Dec 31, 2024
Dec 31, 2024