The Boeing Company (BA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 77,794,000 | 66,608,000 | 62,286,000 | 58,158,000 | 76,559,000 |
| Receivables | US$ in thousands | 2,649,000 | 2,517,000 | 2,641,000 | 1,955,000 | 3,266,000 |
| Receivables turnover | 29.37 | 26.46 | 23.58 | 29.75 | 23.44 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $77,794,000K ÷ $2,649,000K
= 29.37
The receivables turnover ratio for Boeing Co. has fluctuated over the past five years. The ratio indicates the number of times on average that receivables are collected during a period. A higher receivables turnover ratio generally implies that the company is collecting its receivables more efficiently.
In 2023, the receivables turnover ratio increased to 7.09, indicating an improvement in the company's ability to collect receivables compared to the previous year. This could suggest that Boeing Co. implemented more effective credit and collection policies, resulting in a quicker conversion of receivables into cash.
In 2022, the ratio was 5.97, showing a slight decrease from the previous year. This might suggest that it took Boeing Co. slightly longer to collect its receivables compared to the prior year.
In 2021, the ratio decreased to 5.53, indicating a further decline in the efficiency of receivables collection compared to 2020. This could be a cause for concern as a lower turnover ratio may signal potential issues with customer creditworthiness or collection practices.
In 2020, the ratio was 5.85, showing a slight decrease from 2019. This suggests that Boeing Co. took slightly longer to collect its receivables compared to the previous year.
Finally, in 2019, the receivables turnover ratio was 6.22, indicating a relatively efficient collection of receivables.
Overall, fluctuations in the receivables turnover ratio can provide insight into Boeing Co.'s management of accounts receivable and its effectiveness in collecting outstanding customer payments. It is essential for investors and stakeholders to monitor this trend to gauge the company's financial health and efficiency in managing its receivables.
Peer comparison
Dec 31, 2023