The Boeing Company (BA)
Payables 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 |
| Payables | US$ in thousands | 11,364,000 | 11,964,000 | 10,200,000 | 9,261,000 | 12,928,000 |
| Payables turnover | 6.03 | 5.86 | 6.18 | 6.40 | 4.94 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $68,508,000K ÷ $11,364,000K
= 6.03
The payables turnover ratio for The Boeing Company has shown a generally increasing trend over the years, starting at 4.94 in December 2020 and reaching a peak of 6.40 in December 2021. Subsequently, the ratio decreased slightly to 6.18 in December 2022, followed by a further decline to 5.86 in December 2023. However, there was a slight improvement noted in December 2024, with the payables turnover ratio increasing to 6.03.
This trend indicates that Boeing has been managing its accounts payable more effectively, as a higher payables turnover ratio suggests the company is paying its suppliers more frequently within a given period. It could imply strong liquidity and efficient working capital management practices. However, the slight fluctuations in the ratio over the years may indicate varying payment terms with suppliers or changes in the company's purchasing patterns.
Overall, the increasing trend in the payables turnover ratio for most years suggests that Boeing has been successful in optimizing its payables management, potentially improving its cash flows and relationships with suppliers.
Peer comparison
Dec 31, 2024