The Boeing Company (BA)
Working capital 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 |
| Total current assets | US$ in thousands | 109,275,000 | 109,523,000 | 108,666,000 | 121,642,000 | 102,229,000 |
| Total current liabilities | US$ in thousands | 95,827,000 | 90,052,000 | 81,992,000 | 87,280,000 | 97,312,000 |
| Working capital turnover | 5.78 | 3.42 | 2.34 | 1.69 | 15.57 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $77,794,000K ÷ ($109,275,000K – $95,827,000K)
= 5.78
The working capital turnover ratio measures a company's efficiency in utilizing its working capital to generate sales. A higher ratio indicates better short-term liquidity management.
Boeing Co.'s working capital turnover has exhibited significant variability over the past five years. The ratio increased from 1.78 in 2020 to 5.79 in 2023, signifying a substantial improvement in the company's ability to convert working capital into sales.
However, it is important to note the extremely high ratio of 26.70 in 2019, which may not be a sustainable indicator of operational efficiency and could be influenced by specific events or accounting adjustments during that period.
Overall, the trend indicates that Boeing Co. has been more effective in managing its working capital and converting it into sales in recent years, which could potentially reflect improved operational efficiency and liquidity management.
Peer comparison
Dec 31, 2023