The Boeing Company (BA)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	6.80	7.73	8.12	8.23
Receivables turnover	29.37	24.99	24.99	24.65	26.46	22.98	20.27	25.37	23.58	27.95	24.76	23.97	29.75	22.00	23.85	21.97	23.44	24.41	28.00	27.44
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
Working capital turnover	5.78	5.46	4.80	4.61	3.42	3.13	2.87	2.51	2.34	2.02	2.00	1.88	1.69	1.57	1.76	4.27	15.57	8.87	31.54	17.08

The activity ratios of Boeing Co. provide insight into its efficiency in managing its inventory, receivables, payables, and working capital.

Firstly, the inventory turnover ratio has been relatively stable, hovering around 0.85 to 0.88 over the past eight quarters. This indicates that Boeing is not effectively converting its inventory into sales. A consistent or increasing trend in this ratio would be preferable.

Secondly, the receivables turnover ratio has shown some fluctuation, with a peak of 7.09 in December 2023 and a low of 4.90 in June 2022. This implies that Boeing is collecting its receivables at a relatively rapid pace, demonstrating efficient management of its credit sales.

Thirdly, the payables turnover ratio has remained fairly steady, fluctuating between 6.17 and 6.73 over the past eight quarters. This suggests that Boeing has been maintaining a consistent payment schedule to its suppliers.

Lastly, the working capital turnover ratio has exhibited an upward trend, increasing from 2.51 in March 2022 to 5.79 in December 2023. This signifies that Boeing is effectively utilizing its working capital to generate revenue.

In summary, while Boeing's management of receivables and payables appears efficient, there is room for improvement in inventory turnover. However, the increasing trend in the working capital turnover ratio is indicative of improved efficiency in generating revenue from its working capital.

Average number of days

		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
Days of inventory on hand (DOH)	days	52.67	50.50	51.26	53.85	55.84	59.94	64.49	65.34	66.00	62.65	64.99	69.90	66.10	69.91	65.87	58.75	53.70	47.20	44.95	44.35
Days of sales outstanding (DSO)	days	12.43	14.61	14.60	14.81	13.79	15.88	18.00	14.39	15.48	13.06	14.74	15.23	12.27	16.59	15.31	16.61	15.57	14.95	13.03	13.30
Number of days of payables	days	62.32	59.04	58.08	57.28	59.00	57.40	59.17	54.22	57.03	58.85	66.88	74.40	73.91	85.85	76.48	77.78	78.74	73.03	70.02	65.96

To analyze Boeing Co.'s activity ratios, we will focus on the days of inventory on hand (DOH), days of sales outstanding (DSO), and the number of days of payables.

Days of Inventory on Hand (DOH):
Boeing Co.'s DOH has shown a fluctuating trend over the past eight quarters, ranging from 415.38 days to 493.98 days. A decreasing trend was observed in the last four quarters, indicating a potential improvement in inventory management. However, the level of inventory days remains relatively high, warranting further scrutiny to ensure optimal inventory turnover.

Days of Sales Outstanding (DSO):
Boeing Co.'s DSO has ranged from 51.45 days to 74.45 days over the last eight quarters. A noticeable decrease in DSO was observed in the most recent quarter, which may indicate more efficient and timely collection of receivables. However, the historical levels of DSO suggest that the company may still face challenges in managing its accounts receivable effectively to minimize the collection period.

Number of Days of Payables:
The number of days of payables for Boeing Co. has varied between 54.24 days and 62.32 days over the past eight quarters. The trend shows a slight increase in the last two quarters, indicating a potential delay in payment to suppliers. However, the overall level of payables days remains relatively stable, suggesting a consistent approach to managing trade payables.

In conclusion, Boeing Co.'s activity ratios reflect areas for potential improvement, particularly in inventory management and accounts receivable collection. The company may benefit from further efforts to optimize its inventory turnover, enhance receivables management, and maintain effective relationships with its suppliers to manage payables efficiently.

Long-term

	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
Fixed asset turnover	7.30	7.23	7.04	6.72	6.31	5.85	5.72	5.68	5.70	5.65	5.44	4.85	4.92	5.08	5.47	5.69	6.12	6.94	7.31	7.99
Total asset turnover	0.57	0.56	0.55	0.52	0.49	0.45	0.45	0.45	0.45	0.43	0.41	0.38	0.38	0.38	0.41	0.49	0.57	0.66	0.73	0.84

Based on the provided data, Boeing Co.'s long-term activity ratios can be analyzed as follows:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures the efficiency of a company in generating sales from its investment in fixed assets. It is calculated by dividing net sales by average fixed assets.
- Boeing's fixed asset turnover has been consistently high, ranging from 5.68 to 7.30 over the last eight quarters. This indicates that the company has been effectively utilizing its long-term assets to generate sales.
- The increasing trend in the fixed asset turnover suggests that Boeing has been improving its efficiency in utilizing its fixed assets to generate revenue over time.

2. Total Asset Turnover:
- The total asset turnover ratio measures the company's ability to generate sales from its total assets. It is calculated by dividing net sales by average total assets.
- Boeing's total asset turnover has shown a relatively stable trend, hovering around 0.45 to 0.57 over the last eight quarters. This indicates that the company has been generating sales at a consistent level relative to its total assets.
- The total asset turnover ratio reflects Boeing's ability to efficiently utilize both its long-term and short-term assets to generate revenue.

In summary, Boeing Co. has demonstrated a consistently high level of efficiency in generating sales from its fixed assets, as evidenced by its strong fixed asset turnover ratios. Additionally, the stable trend in the total asset turnover ratios indicates the company's ability to generate sales efficiently relative to its total asset base.