The Boeing Company (BA)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 72,093,000 | 75,475,000 | 79,585,000 | 81,311,000 |
| Payables | US$ in thousands | 11,964,000 | 11,143,000 | 10,936,000 | 10,274,000 | 10,200,000 | 9,793,000 | 9,575,000 | 8,779,000 | 9,261,000 | 10,151,000 | 11,450,000 | 12,410,000 | 12,928,000 | 14,479,000 | 13,700,000 | 14,963,000 | 15,553,000 | 15,101,000 | 15,267,000 | 14,693,000 |
| Payables turnover | 5.86 | 6.18 | 6.28 | 6.37 | 6.19 | 6.36 | 6.17 | 6.73 | 6.40 | 6.20 | 5.46 | 4.91 | 4.94 | 4.25 | 4.77 | 4.69 | 4.64 | 5.00 | 5.21 | 5.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $70,070,000K ÷ $11,964,000K
= 5.86
Boeing Co.'s payables turnover ratio measures how efficiently the company manages its trade credit from suppliers. The ratio is calculated by dividing the cost of goods sold by the average accounts payable for a period. A higher payables turnover ratio generally indicates that Boeing Co. is paying its suppliers more frequently, which may suggest good liquidity or strong negotiation power with suppliers.
Looking at the trend in Boeing's payables turnover ratio over the past eight quarters, we observe a relatively consistent performance with values ranging between 5.86 and 6.73. This consistency suggests that Boeing Co. has been effectively managing its payables turnover and maintaining a stable relationship with its suppliers. However, an increase in the ratio over time could indicate that the company is taking longer to pay its suppliers, which may have implications for supplier relationships and working capital management.
Considering the industry norms and Boeing Co.'s own historical data, this trend in payables turnover should be further evaluated in conjunction with other financial indicators to provide a comprehensive assessment of the company's financial performance and management of supplier relationships.
Peer comparison
Dec 31, 2023