The Boeing Company (BA)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	25.28	25.33	23.31	25.83	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
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
Working capital turnover	2.15	6.04	4.13	5.76	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

The Inventory turnover ratio for The Boeing Company has shown a generally positive trend over the past few years, starting at 6.21 in March 2020 and increasing to 6.13 by December 2024. This indicates that Boeing is efficiently managing its inventory, with faster turnover rates in recent periods.

The Receivables turnover ratio has fluctuated during the same period, ranging from 20.27 in June 2022 to 29.75 in December 2020. The ratio reflects the effectiveness of Boeing in collecting its outstanding receivables, with some periods showing better collection efficiency than others.

Boeing's Payables turnover ratio has also varied, ranging from 4.25 in September 2020 to 6.40 in December 2021. The increasing trend in this ratio generally suggests that Boeing is taking longer to pay its bills, which could potentially impact relationships with suppliers.

The Working capital turnover ratio for Boeing has demonstrated an increasing trend from 1.57 in September 2020 to 6.04 in September 2024. This suggests that Boeing is generating more revenue for each dollar of working capital invested, indicating improved efficiency in utilizing its resources to generate sales.

Overall, The Boeing Company's activity ratios show fluctuations over the analyzed period, with some improvements in inventory turnover and working capital turnover, while receivables and payables turnover ratios have shown varying performance. It is essential for Boeing to continue monitoring and managing these ratios to ensure optimal operational efficiency and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	59.58	52.74	55.78	53.45	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
Days of sales outstanding (DSO)	days	14.44	14.41	15.66	14.13	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
Number of days of payables	days	60.55	63.06	65.03	61.66	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

The activity ratios of The Boeing Company, specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the company's operational efficiency and management of its working capital.

1. Days of Inventory on Hand (DOH): This ratio measures how many days it takes for the company to turn its inventory into sales. Over the reported periods, Boeing's DOH has shown a downward trend, decreasing from 58.75 days as of March 31, 2020, to 59.58 days as of December 31, 2024. The declining trend indicates that Boeing has been managing its inventory more efficiently over time, which may result in lower carrying costs and improved liquidity.

2. Days of Sales Outstanding (DSO): DSO reflects how long it takes for Boeing to collect its accounts receivable. The DSO has fluctuated over the periods but generally maintained within a reasonable range. Boeing's DSO ranged from 12.27 days as of December 31, 2020, to 18.00 days as of June 30, 2022. A lower DSO suggests that Boeing is efficiently converting sales into cash, indicating strong credit and collection policies.

3. Number of Days of Payables: This ratio represents how long Boeing takes to pay its suppliers. The trend in the Number of Days of Payables has been somewhat stable over the periods, ranging from 54.22 days as of March 31, 2022, to 65.03 days as of June 30, 2024. A longer period of payables may indicate that Boeing has been able to negotiate favorable credit terms with its suppliers, potentially improving cash flow and liquidity.

In summary, Boeing's activity ratios show a trend of improving operational efficiency and working capital management, which is crucial for sustaining a healthy financial position and supporting long-term growth.

Long-term

	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
Fixed asset turnover	5.83	6.52	6.70	7.15	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
Total asset turnover	0.43	0.53	0.52	0.57	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

The fixed asset turnover ratio for The Boeing Company has been relatively consistent over the years, ranging from 4.92 to 7.30. This ratio measures how efficiently the company is generating sales from its fixed assets, indicating that Boeing has been able to effectively utilize its fixed assets to generate revenue.

In contrast, the total asset turnover ratio for Boeing has shown more fluctuation, ranging from 0.38 to 0.57. This ratio indicates how efficiently the company is using all its assets to generate revenue. The increase in the total asset turnover ratio over time suggests that Boeing has improved its efficiency in utilizing all its assets to generate sales.

Overall, the long-term activity ratios suggest that Boeing has been effectively managing its fixed assets to generate sales and has made improvements in the effective utilization of all its assets to generate revenue over the years.