The Boeing Company (BA)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 53.70 | 47.20 | 44.95 | 44.35 |
| Days of sales outstanding (DSO) | days | 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 | 15.57 | 14.95 | 13.03 | 13.30 |
| Number of days of payables | days | 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 | 78.74 | 73.03 | 70.02 | 65.96 |
| Cash conversion cycle | days | 2.78 | 6.07 | 7.78 | 11.38 | 10.64 | 18.42 | 23.32 | 25.51 | 24.44 | 16.85 | 12.85 | 10.73 | 4.46 | 0.65 | 4.70 | -2.42 | -9.48 | -10.87 | -12.03 | -8.31 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.67 + 12.43 – 62.32
= 2.78
The cash conversion cycle of Boeing Co. has shown fluctuating results over the past eight quarters. The cycle measures the time it takes a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash quickly from its operations.
Looking at the data, we can see that the cash conversion cycle has ranged from a low of 404.51 days to a high of 509.25 days. The trend appears to be quite volatile, with noticeable ups and downs. This suggests that Boeing's ability to manage its working capital and convert it into cash has been inconsistent over the period in question.
It is important for investors and analysts to closely monitor the cash conversion cycle, as it provides insight into the company's operational efficiency and its ability to generate cash from its core business activities. Boeing Co. would benefit from focusing on strategies to improve its cash conversion cycle in order to enhance its overall financial performance and ensure sustainable cash flows.
Peer comparison
Dec 31, 2023