The Boeing Company (BA)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 66,517,000 | 77,794,000 | 66,608,000 | 62,286,000 | 58,158,000 |
| Total current assets | US$ in thousands | 127,998,000 | 109,275,000 | 109,523,000 | 108,666,000 | 121,642,000 |
| Total current liabilities | US$ in thousands | 97,078,000 | 95,827,000 | 90,052,000 | 81,992,000 | 87,280,000 |
| Working capital turnover | 2.15 | 5.78 | 3.42 | 2.34 | 1.69 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $66,517,000K ÷ ($127,998,000K – $97,078,000K)
= 2.15
The working capital turnover of The Boeing Company has shown a positive trend over the years, indicating an improvement in the efficiency of utilizing its working capital. The ratio has increased from 1.69 in December 31, 2020, to 2.34 in December 31, 2021, reflecting a stronger turnover of working capital. This improvement continued substantially as the ratio further increased to 3.42 in December 31, 2022, and significantly surged to 5.78 in December 31, 2023. The significant spike in 2023 suggests that Boeing was able to generate revenue at a much faster rate relative to its working capital investment during that year. However, there was a slight decrease in the working capital turnover to 2.15 in December 31, 2024, which may require further investigation to understand the potential factors contributing to this decline. Overall, the increasing trend in the working capital turnover ratio indicates that Boeing has been managing its working capital efficiently, which could be a positive sign for the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024