The Boeing Company (BA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.58 | 52.67 | 55.87 | 66.00 | 66.10 |
| Days of sales outstanding (DSO) | days | 14.44 | 12.43 | 13.79 | 15.48 | 12.27 |
| Number of days of payables | days | 60.55 | 62.32 | 59.02 | 57.03 | 73.91 |
| Cash conversion cycle | days | 13.47 | 2.78 | 10.64 | 24.44 | 4.46 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.58 + 14.44 – 60.55
= 13.47
The cash conversion cycle of The Boeing Company has shown fluctuations over the analyzed period. In December 2020, the company's cash conversion cycle was 4.46 days, indicating a relatively efficient management of cash and working capital. However, by the end of December 2021, the cash conversion cycle increased significantly to 24.44 days, suggesting a delay in converting investments in inventory and accounts receivable into cash.
In the following year, by December 2022, The Boeing Company managed to reduce its cash conversion cycle to 10.64 days, indicating an improvement in working capital management efficiency. Nevertheless, in December 2023, the company experienced a notable decrease in its cash conversion cycle to 2.78 days, showcasing a swift turnaround in converting assets into cash.
By December 2024, The Boeing Company's cash conversion cycle increased to 13.47 days, indicating a moderate increase in the time taken to convert investments into cash compared to the previous year. Overall, the company's cash conversion cycle fluctuated over the analyzed period, reflecting changes in the efficiency of cash management and working capital practices.
Peer comparison
Dec 31, 2024