The Boeing Company (BA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.58 | 52.74 | 55.78 | 53.45 | 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 |
| Days of sales outstanding (DSO) | days | 14.44 | 14.41 | 15.66 | 14.13 | 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 |
| Number of days of payables | days | 60.55 | 63.06 | 65.03 | 61.66 | 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 |
| Cash conversion cycle | days | 13.47 | 4.09 | 6.40 | 5.92 | 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 |
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 reported periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash. A shorter cash conversion cycle is generally seen as a positive indicator, as it shows that the company is able to efficiently manage its working capital.
From March 31, 2020, to December 31, 2024, Boeing's cash conversion cycle varied significantly. It started with negative days, indicating that the company was efficiently turning its investments into cash. However, there was a notable increase in the cycle, peaking at 25.51 days by March 31, 2022. This increase may suggest challenges in managing working capital efficiently during that period.
Subsequently, there was a decreasing trend in the cash conversion cycle, reaching 2.78 days by December 31, 2023. This improvement indicates that Boeing may have made adjustments to streamline its operations and optimize working capital management. However, there was a slight increase to 13.47 days by December 31, 2024, which could be worth monitoring in future periods.
Overall, Boeing's cash conversion cycle has displayed fluctuations, reflecting changes in its inventory management and cash flow processes. Further analysis and evaluation of the company's working capital efficiency may provide insights into its operational performance and financial health.
Peer comparison
Dec 31, 2024