Boeing Co. (NYSE:BA)

The short-term operating activity ratios exhibit varied trends over the observed period. Generally, a degree of improvement in efficiency metrics is noted from 2022 through 2025, though fluctuations exist. Inventory management, accounts receivable processing, and accounts payable management all demonstrate shifts worthy of consideration. Overall working capital utilization also shows significant changes.

Inventory Turnover

Inventory turnover demonstrates a generally increasing trend, rising from 0.74 in March 2022 to 1.01 in December 2025. This suggests improving efficiency in managing inventory levels, with a faster rate of sales relative to inventory held. However, there is a slight dip to 0.82 in March 2024 before resuming the upward trajectory.

Receivables Turnover

Receivables turnover fluctuates considerably, beginning at 25.37 in March 2022 and reaching a peak of 30.63 in December 2025. There are dips in June 2022 and March 2023, but the overall trend is positive, indicating a more efficient collection of receivables. The most recent value suggests an acceleration in collecting outstanding payments.

Payables Turnover

Payables turnover remains relatively stable, ranging between 5.61 and 6.81 throughout the period. A slight downward trend is observed from March 2022 to December 2023, followed by a modest recovery. This suggests consistent, but not dramatically changing, payment practices to suppliers.

Working Capital Turnover

Working capital turnover exhibits a substantial increase from 2.51 in March 2022 to 4.40 in December 2025. This indicates improved efficiency in utilizing working capital to generate sales. A significant jump occurs between March 2023 and September 2023, followed by a slight decline in the most recent quarter. The dip to 2.15 in December 2024 is a notable deviation from the overall upward trend.

Average Inventory Processing Period

The average inventory processing period consistently decreases from 493 days in March 2022 to 363 days in December 2025. This aligns with the increasing inventory turnover and signifies a reduction in the time required to convert inventory into sales. The decline is not linear, with some quarterly variations.

Average Receivable Collection Period

The average receivable collection period remains relatively stable, fluctuating between 12 and 18 days. A slight tendency towards shorter collection periods is observed in the later quarters, mirroring the receivables turnover trend. The period returns to 12 days in the final two quarters of the observed period.

Operating Cycle

The operating cycle demonstrates a decreasing trend, moving from 507 days in March 2022 to 375 days in December 2025. This indicates a shortening of the time required to convert raw materials into cash from sales. The reduction is consistent with improvements in both inventory processing and receivable collection.

Average Payables Payment Period

The average payables payment period fluctuates between 54 and 65 days. A slight increase is observed through December 2023, followed by a decrease. The period remains relatively stable in the final year of the observation period.

Cash Conversion Cycle

The cash conversion cycle shows a significant decrease from 453 days in March 2022 to 319 days in December 2025. This is a positive indicator, suggesting improved efficiency in managing working capital and converting investments into cash. The most substantial improvement occurs between 2022 and 2023.

In summary, the analyzed ratios suggest improving operational efficiency over the period, particularly in inventory and receivables management. The working capital turnover and cash conversion cycle demonstrate significant positive trends. While payables management remains relatively stable, the overall picture indicates a strengthening of short-term financial health.

The inventory turnover ratio exhibits a generally increasing trend over the observed period, though with some quarterly fluctuations. Initial values are relatively stable before demonstrating more pronounced changes in later periods.

Overall Trend

From March 31, 2022, through December 31, 2023, the inventory turnover ratio generally increased, moving from 0.74 to 0.88. This suggests a growing efficiency in managing inventory levels relative to the cost of goods sold. However, this upward trend was not consistent, with some quarterly declines.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The ratio remained relatively flat between 0.74 and 0.81 during this period. This indicates a stable, but comparatively low, rate of inventory conversion into revenue. Cost of products and services increased steadily, while inventories remained largely consistent.

Acceleration (Mar 31, 2023 – Sep 30, 2023)

A noticeable increase in the ratio occurred between March 31, 2023 (0.83) and June 30, 2023 (0.88). This coincided with a rise in the cost of products and services and a slight decrease in inventory levels, suggesting improved inventory management. The ratio then decreased slightly to 0.87 by September 30, 2023.

Recent Fluctuations (Dec 31, 2023 – Dec 31, 2025)

The ratio experienced more volatility in the latter part of the period. It decreased to 0.82 by March 31, 2024, and further to 0.78 by June 30, 2024, before recovering to 0.85 by September 30, 2024. A subsequent decline to 0.78 was observed by December 31, 2024. The most significant increases occurred in the final two quarters, reaching 0.97 by September 30, 2025, and peaking at 1.01 by December 31, 2025. This recent surge suggests a substantial improvement in inventory efficiency, potentially driven by increased sales or more effective inventory control measures. Inventory levels decreased while cost of products and services increased significantly in the final two quarters.

In summary, while the inventory turnover ratio demonstrated a general upward trend, the rate of improvement varied considerably across the observed period. The most substantial gains occurred in the final quarters, indicating a potential shift in inventory management practices or demand patterns.

The receivables turnover ratio exhibits fluctuations over the observed period, generally ranging between 20 and 31. An initial decline is noted from the first to the second quarter of 2022, followed by a recovery and subsequent peak in the fourth quarter of the same year. This pattern repeats in the following years, suggesting a potential seasonal or cyclical component influencing the ratio.

Overall Trend

From March 2022 through December 2023, the ratio demonstrates variability without a clear, sustained upward or downward trend. However, a noticeable increase is observed in the final quarter of 2023 and continues into the first two quarters of 2025, reaching a high of 30.63 in December 2025. This suggests improved efficiency in collecting receivables during this later period.

Year-over-Year Comparisons

Comparing the first half of 2023 to the first half of 2022, the receivables turnover ratio remained relatively stable, fluctuating around 24-25. A similar pattern is observed when comparing the first half of 2024 to the first half of 2023. However, the latter half of 2024 and the first half of 2025 show a more pronounced increase in the ratio compared to the corresponding periods in prior years.

Quarterly Patterns

A recurring pattern emerges where the ratio tends to be lower in the second quarter and higher in the fourth quarter of each year. This could be linked to the timing of revenue recognition, payment terms offered to customers, or seasonal variations in sales volume. The ratio consistently peaks in either the fourth quarter or the first quarter following it.

The observed fluctuations in receivables turnover warrant further investigation to determine the underlying drivers. While the ratio generally indicates efficient management of accounts receivable, the recent upward trend suggests potential improvements in collection processes or a shift in customer payment behavior. Continued monitoring is recommended to assess the sustainability of this trend.

The accounts payable turnover ratio exhibits a generally stable pattern over the observed period, with some fluctuations. Initial values indicate a moderate level of efficiency in managing payments to suppliers, followed by a period of slight decline, and then a recovery towards the end of the period.

Overall Trend

From March 31, 2022, to December 31, 2022, the ratio decreased from 6.73 to 5.86. This suggests a lengthening of the time taken to pay suppliers during this timeframe. A subsequent recovery is observed through December 31, 2023, reaching 6.03, but this is followed by further fluctuations. The ratio peaks at 6.81 in September 2025 before decreasing to 6.50 by the end of the period.

Short-Term Fluctuations

A slight increase is noted from June 30, 2022 (6.17) to September 30, 2022 (6.36). The period between March 31, 2023 (6.37) and June 30, 2023 (6.28) shows minimal change. A more pronounced increase occurs between March 31, 2024 (5.92) and September 30, 2024 (5.79), followed by a return to 6.03 by December 31, 2024. The most significant increase occurs between June 30, 2025 (6.72) and September 30, 2025 (6.81).

Relationship to Cost of Products and Services

The cost of products and services generally increased over the period, with some quarterly variations. While accounts payable also increased, the fluctuations in the payables turnover ratio suggest that the timing of payments did not always directly correlate with changes in purchasing activity. For example, despite a rise in the cost of products and services from September 30, 2023 (16,939) to December 31, 2023 (19,321), the payables turnover ratio decreased, indicating slower payment processing.

Recent Performance

The most recent quarters show a slight downward trend, with the ratio decreasing from 6.81 in September 2025 to 6.50 in December 2025. This could warrant further investigation to determine if it signals a developing trend of slower payments or is simply a temporary fluctuation.

In summary, the accounts payable turnover ratio demonstrates a relatively stable performance with periodic adjustments. The observed fluctuations require continued monitoring to assess their potential impact on supplier relationships and working capital management.

The working capital turnover ratio exhibits considerable fluctuation throughout the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicate a gradual increase, followed by a period of substantial volatility and a concluding stabilization.

Initial Trend (Mar 31, 2022 – Dec 31, 2022)

From March 31, 2022, to December 31, 2022, the working capital turnover ratio demonstrates a consistent upward trend, increasing from 2.51 to 3.42. This suggests an improving efficiency in utilizing working capital to generate revenue during this timeframe. Revenues also increased during this period, contributing to the higher turnover.

Significant Increase & Peak (Mar 31, 2023 – Sep 30, 2023)

A marked increase is observed from March 31, 2023, peaking at 5.78 on September 30, 2023. The ratio more than doubled from 4.61 to 5.78, indicating a significant improvement in the efficiency of working capital utilization. This coincides with a period where revenues were relatively stable, while working capital decreased, driving the ratio higher.

Volatility & Decline (Dec 31, 2023 – Sep 30, 2024)

Following the peak, the ratio experiences volatility, decreasing to 2.15 by December 31, 2024. This decline is primarily attributable to a substantial increase in working capital, coupled with a decrease in revenues. The ratio then partially recovers to 6.04 by September 30, 2024, suggesting a temporary improvement in working capital efficiency.

Stabilization (Mar 31, 2025 – Dec 31, 2025)

The final period, from March 31, 2025, to December 31, 2025, shows a degree of stabilization, with the ratio fluctuating between 4.29 and 4.40. This suggests a more consistent, though not exceptionally high, level of working capital efficiency. Revenues remained relatively stable during this period, and working capital experienced moderate changes.

Overall, the working capital turnover ratio demonstrates a complex pattern of improvement, peak performance, decline, and eventual stabilization. The fluctuations suggest sensitivity to changes in both revenue generation and working capital management practices.

The average inventory processing period demonstrates a generally decreasing trend over the observed timeframe, although with some quarterly fluctuations. Initial values indicate a lengthy processing period, which subsequently contracts before exhibiting some volatility and a final reduction. A more detailed examination reveals specific patterns and potential areas of interest.

Overall Trend

From March 31, 2022, to December 31, 2025, the average inventory processing period generally decreased. The period began at 493 days and concluded at 363 days, representing a substantial reduction. However, this decrease was not linear, with periods of increase interspersed throughout the observation window.

Initial Phase (Mar 31, 2022 – Dec 31, 2022)

The period commenced at 493 days and experienced a consistent decline through December 31, 2022, reaching 452 days. This initial reduction suggests improving efficiency in inventory management or a shift in sales patterns during this period. The decline, while consistent, was relatively modest each quarter.

Fluctuation and Continued Decline (Mar 31, 2023 – Dec 31, 2023)

The first half of 2023 saw a further reduction to 416 days, followed by a slight increase to 419 days in the third quarter. The period then stabilized at 415 days by the end of 2023. This suggests potential seasonal factors or temporary disruptions influencing inventory flow.

Volatility and Final Reduction (Mar 31, 2024 – Dec 31, 2025)

The period increased to 443 days in the first quarter of 2024, then to 470 days in the second, before decreasing to 428 days. A subsequent increase to 466 days was observed, followed by a more pronounced and sustained decline. The period ended at 363 days on December 31, 2025, representing the lowest value observed throughout the entire timeframe. This final reduction could be attributed to successful implementation of inventory optimization strategies or a change in production/sales dynamics.

Relationship to Inventory Turnover

The observed trend in the average inventory processing period aligns with the trend in inventory turnover. As inventory turnover increased, the average processing period decreased, indicating an inverse relationship. This is expected, as a higher turnover rate implies inventory is being sold and replenished more quickly, thus reducing the time it spends in processing.

In summary, the average inventory processing period has shown a general improvement over the analyzed period, with a notable reduction in the time required to process inventory. While fluctuations occurred, the overall trend suggests increasing efficiency in inventory management practices.

The average receivable collection period exhibited relative stability over the observed period, with fluctuations primarily occurring between 14 and 18 days. An initial increase from 14 days in the March 2022 period to 18 days in the June 2022 period is noted, followed by a decrease to 16 days by September 2022 and returning to 14 days by the end of the year.

Overall Trend

The collection period generally remained within a narrow range throughout the analyzed timeframe. While some quarterly variations occurred, a consistent, long-term upward or downward trend was not apparent. The period demonstrates a cyclical pattern, with increases and decreases occurring throughout the year.

Recent Performance

From March 2023 through December 2023, the average collection period remained consistently at 15 days, with a single instance of 12 days in December 2023. A slight increase to 17 days was observed in March 2024, followed by a return to 15 days in June 2024, and then stabilization at 14-15 days through September 2025. The final reported period, December 2025, shows a decrease to 12 days.

Notable Fluctuations

The most significant increase in the average collection period occurred between March and June 2022, representing a four-day increase. Conversely, the most substantial decrease occurred between September 2022 and December 2022, also a four-day decrease. A similar decrease to 12 days occurred in December 2023 and again in December 2025.

Potential Implications

The consistent collection period suggests effective credit and collection policies. Fluctuations may be attributable to seasonal sales patterns, changes in customer payment terms, or variations in the mix of customers. The recent decrease to 12 days in the final reported periods could indicate improved collection efficiency or a shift in customer payment behavior.

In summary, the average receivable collection period demonstrates a generally stable performance with minor cyclical variations. The company appears to maintain consistent control over its receivables, as evidenced by the relatively short and consistent collection timeframe.

The operating cycle demonstrates fluctuating patterns over the observed period. Generally, a decreasing trend in both components – average inventory processing period and average receivable collection period – is apparent, though with considerable quarterly variation. This suggests potential improvements in efficiency regarding inventory management and the speed of collecting receivables, but these improvements are not consistently realized.

Average Inventory Processing Period

The average inventory processing period exhibits significant volatility. It begins at 493 days and generally declines, reaching a low of 363 days by December 2025. However, this decline is not linear. Increases are observed between March and June 2024 (443 to 470 days) and again between September and December 2024 (428 to 466 days). The period fluctuates, indicating inconsistent inventory management practices or external factors impacting inventory turnover. The most recent value, 363 days, represents the lowest point in the observed timeframe.

Average Receivable Collection Period

The average receivable collection period remains relatively stable, fluctuating within a narrow range of 12 to 18 days. A slight upward trend is visible in the earlier part of the period, followed by a return to the lower end of the range. The period concludes at 12 days, mirroring the lowest values observed throughout the timeframe. This suggests consistent effectiveness in collecting receivables, although minor variations occur.

Operating Cycle

The operating cycle, calculated as the sum of the average inventory processing period and the average receivable collection period, mirrors the trends of its components. It begins at 507 days and generally decreases to 375 days by December 2025. Similar to the inventory processing period, the operating cycle experiences quarterly fluctuations. The period increased from 457 to 486 days between March and June 2024, and from 442 to 480 days between September and December 2024. The overall downward trend suggests increasing efficiency in converting investments in inventory and receivables into cash, but the volatility indicates this efficiency is not consistently maintained.

The observed fluctuations warrant further investigation to identify the underlying causes. Potential areas of inquiry include changes in supply chain management, production schedules, credit policies, and customer payment behavior. A more consistent reduction in the operating cycle would generally be viewed favorably, indicating improved liquidity and operational efficiency.

The average payables payment period exhibited a generally increasing trend over the observed period, with some fluctuations. Initially, the period stood at 54 days in March 2022, gradually increasing to 59 days by June 2022. It remained relatively stable around 57 to 62 days through the end of 2023.

Overall Trend

From March 2022 to December 2023, the average payables payment period increased from 54 days to 62 days, representing a roughly 15% increase. This suggests a lengthening in the time taken to settle obligations to suppliers.

Recent Fluctuations

A slight decrease was observed in the first quarter of 2024, with the period falling to 62 days, followed by a further decrease to 57 days in March 2025. However, it increased again to 56 days by June 2025. These fluctuations suggest potential shifts in supplier negotiation strategies or changes in the timing of payments.

Peak and Trough

The longest average payables payment period was recorded at 65 days in June 2024. The shortest period was 54 days, observed in both March 2022 and March 2025.

The payables turnover ratio, inversely related to the payment period, generally decreased over the period. This decrease in turnover corroborates the observed increase in the average payables payment period, indicating a consistent pattern of extending payment terms to suppliers.

Correlation with Payables Turnover

The inverse relationship between the average payables payment period and the payables turnover ratio is evident. As the turnover ratio declined from 6.73 in March 2022 to 6.50 in December 2025, the payment period generally increased, suggesting a consistent strategy regarding supplier payments.

The period stabilized somewhat in the most recent quarters, but remains elevated compared to the beginning of the analyzed timeframe. Continued monitoring of this metric is recommended to assess any further changes in payment practices and their potential impact on supplier relationships and working capital management.

The short-term operating activity, as measured by the cash conversion cycle and its components, demonstrates notable fluctuations over the observed period. Generally, a decreasing trend in the cash conversion cycle is apparent from 2022 through 2025, although with intermittent increases. A closer examination of the individual components reveals the drivers behind this overall trend.

Average Inventory Processing Period

The average inventory processing period exhibited a high level of variability. It began at 493 days in March 2022, decreased to a low of 363 days by December 2025, with several interim peaks. A general downward trend is visible, particularly from mid-2023 onwards, suggesting improved inventory management efficiency. However, a slight increase is observed in the first half of 2024, before resuming the decline.

Average Receivable Collection Period

The average receivable collection period remained relatively stable, fluctuating between 12 and 18 days throughout the period. There is no clear directional trend. The period generally remained within a narrow range, indicating consistent efficiency in collecting receivables. A slight tendency towards lower collection periods is observed in the latter half of the observed timeframe.

Average Payables Payment Period

The average payables payment period showed a gradual increasing trend from 54 days in March 2022 to 56 days in December 2025. While the increases are modest, they suggest a potential lengthening of payment terms to suppliers. The period experienced fluctuations, peaking at 65 days in June 2024, but generally remained between 54 and 62 days.

Cash Conversion Cycle

The cash conversion cycle decreased from 453 days in March 2022 to 319 days by December 2025. This decrease is primarily driven by the reduction in the average inventory processing period. While the receivable collection period remained relatively constant and the payables payment period increased slightly, the significant improvement in inventory management had the most substantial impact on shortening the cycle. The cycle experienced some volatility, with increases in the first half of 2024, but the overall trend is demonstrably downward.

In summary, the observed trends suggest improving efficiency in managing inventory, which is the primary driver of the decreasing cash conversion cycle. The consistent receivable collection period and slightly lengthening payables payment period have a less pronounced effect on the overall cycle length.