The Boeing Company (BA)
Payables 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 |
| Payables | US$ in thousands | 11,364,000 | 12,267,000 | 11,864,000 | 11,616,000 | 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 |
| Payables turnover | 6.03 | 5.79 | 5.61 | 5.92 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ 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 past several quarters, demonstrating the company's ability to efficiently manage its accounts payable. The ratio has improved from 4.69 in March 2020 to 6.03 in December 2024.
A higher payables turnover ratio indicates that Boeing is paying off its suppliers more frequently within a given period, which may reflect strong supplier relationships or effective working capital management. It also suggests that Boeing may be utilizing its resources more effectively and potentially negotiating better credit terms with its suppliers.
The slight fluctuations in the ratio over the observed period are common in the industry and can be influenced by various factors, including changes in purchasing patterns, payment terms renegotiations, or adjustments in inventory management strategies.
Overall, the consistent improvement in the payables turnover ratio for The Boeing Company suggests sound financial management practices and a proactive approach towards managing its accounts payable in a timely and efficient manner.
Peer comparison
Dec 31, 2024