Boeing Co. (NYSE:BA)

Inventory Turnover

The inventory turnover ratio showed relatively low levels throughout the periods analyzed, starting at 0.78 in March 2021 and fluctuating slightly around 0.74 to 0.88. There was a modest upward trend from late 2021 through early 2023, reaching a peak at 0.88, followed by some variability but generally maintaining a level near 0.8.

Receivables Turnover

This ratio demonstrated pronounced volatility, with an initial posting near 29.75 in March 2021, then gradually declining to values around 20 in late 2021. A cyclical pattern emerged with variations up to approximately 29.37 in early 2024, followed by a decline towards 21.67 by mid-2025, indicating fluctuating efficiency in collecting receivables over time.

Payables Turnover

The payables turnover ratio generally increased from around 4.94 in early 2021 to peaks above 6.7 in mid-2022 and mid-2025. Periodic decreases occurred, notably in early 2024. Overall, this suggests an increasing pace in paying suppliers with intermittent slowdowns.

Working Capital Turnover

Working capital turnover exhibited a strong upward trend between early 2021 and late 2023, rising from 1.69 to a high of 6.04. After this peak, a pronounced decline occurred by mid-2024, followed by moderate recovery towards 3.15 by mid-2025. This indicates improved efficiency in using working capital over most of the timeframe, with some recent reductions.

Average Inventory Processing Period

The average days inventory remained relatively high and somewhat stable, oscillating between approximately 415 and 496 days. The period from mid-2021 to early 2023 showed a gradual improvement (decrease), dropping from near 493 to around 416 days, followed by slight increases toward mid-2025.

Average Receivable Collection Period

The days sales outstanding for receivables showed minor variability, mostly ranging between 12 and 18 days. A small increase was observed in late 2021 and 2022, with a temporary decline noted entering 2024, indicating steady but fluctuating collection periods.

Operating Cycle

The operating cycle, representing the combined inventory and receivables period, mirrored the trends in these individual components. It remained relatively steady at around 430 to 510 days, with a gradual downward trend in inventory processing helping to reduce the cycle length slightly towards 2023, followed by moderate increases thereafter.

Average Payables Payment Period

The average days payable outstanding decreased steadily from 74 days in early 2021 to about 54 days in mid-2022, indicating faster payment to suppliers. However, from 2023 onward, this period slightly lengthened again, reaching levels near 62 days and above, suggesting a moderation in payment speed during that time.

Cash Conversion Cycle

The cash conversion cycle closely followed the individual timings of inventory, receivables, and payables. Starting at approximately 405 days in early 2021, it increased to above 450 days during late 2021 and 2022, then showed a clear decline into 2023 reaching about 365 days, indicating improvements in cash flow management. Some reversal was seen through 2024, with values fluctuating near 400 days before decreasing again toward mid-2025.

The cost of products and services exhibited notable fluctuations over the reported periods. Initially, there was a decrease from March 2020 to June 2020, followed by a relatively stable phase with minor increases and decreases through 2021. In 2022 and 2023, the cost showed an overall increasing trend with some quarterly volatility, culminating in a significant rise towards the end of 2024. This pattern suggests varying production expenses potentially influenced by changes in demand, supply chain dynamics, or operational adjustments.

Inventories demonstrated a generally stable but slightly upward trend throughout the periods. Starting around 80 billion US dollars in early 2020, the inventory levels increased gradually, peaking near 89 billion US dollars by mid-2025. Occasional minor decreases occurred, yet the overall trajectory was one of accumulation, indicating either an increase in stockpiling or challenges in managing inventory turnover efficiently.

The inventory turnover ratio, where data is available, maintained consistency within a narrow range between 0.74 and 0.88. This ratio showed a subtle upward trend from late 2020 into 2023, suggesting marginal improvements in inventory management or sales efficiency during this time. However, in the later periods towards mid-2025, the ratio exhibited some volatility without a clear directional trend, implying fluctuating effectiveness in converting inventory into sales.

Cost of products and services

Displayed significant variability with periods of increase and decrease, particularly notable are declines in mid-2020 and subsequent rises through 2024.

Inventories

Gradually increased over time with minor fluctuations, indicating a build-up in stock levels possibly related to production volume or supply chain factors.

Inventory turnover

Remained relatively stable with slight improvement trends until 2023, followed by variable performance in later periods.

The quarterly financial data presents several notable trends and insights over the observed periods concerning revenues, accounts receivable, and receivables turnover ratios.

Revenues

Revenues experienced significant fluctuations across the quarters. The initial period shows revenues at approximately $16.9 billion, which then dropped to around $11.8 billion in the following quarter, indicating a sharp decline. Subsequently, revenues demonstrated a recovery trend, gradually increasing to nearly $20 billion towards the end of 2022. This upward trend continued with some variability in subsequent quarters, reaching a peak close to $22.7 billion by the end of the latest period. Despite some quarterly declines, the overall trend suggests gradual revenue growth after a dip in early 2020.

Accounts Receivable, Net

Accounts receivable showed moderate variability throughout the timeline. Starting from around $3.2 billion in the earliest quarter, the balance decreased in the mid-2020 period to a low of approximately $1.95 billion, correlating with the revenue dip and potential collection improvements or slower customer invoicing. Following this low, the accounts receivable gradually increased again, stabilizing between roughly $2.6 billion and $3.2 billion in the subsequent years. The fluctuations indicate some sensitivity of receivables balances to the changes in sales levels and possibly changes in credit or collection policies.

Receivables Turnover Ratio

The receivables turnover ratio exhibits considerable fluctuation each quarter, with values ranging from a low of approximately 20.27 to a high near 29.75. The ratio tends to decrease during quarters with higher revenue and/or higher accounts receivable balances and increase when receivables are collected more rapidly relative to revenues. The turnover ratio generally shows a pattern of decline and recovery mirroring the revenue and receivables trends, suggesting variations in collection efficiency or payment terms over time. Notably, after an initial high turnover ratio, this metric experienced a downward trajectory in the middle periods before showing intermittent rebounds.

In summary, the data reflects a business cycle affected by external or internal disruptions early on, with revenues and receivables tightly linked and showing recovery in later periods. The receivables turnover ratio variations indicate changing collection dynamics, which are critical for cash flow management. Overall, the financial position in terms of cash conversion efficiency and sales appears to improve gradually after an initial phase of weakness.

Cost of products and services

The cost of products and services reveals a volatile pattern with several fluctuations over the observed periods. Starting at a high of 16,756 million US dollars in March 2020, it dipped considerably in mid-2020 with values around 12,967 to 13,095 million US dollars. There was a notable increase at the end of 2020, peaking at 20,982 million US dollars in December 2020. Subsequently, the costs ranged mostly between approximately 13,600 and 19,300 million US dollars in 2021 and 2022, with peaks near the year-end quarters. The trend remains inconsistent but generally indicates rising costs towards the end of each year. In 2023 and early 2024, cost values again fluctuate within the range of 14,600 to 19,300 million US dollars, with no clear upward or downward trend but quarterly volatility persists.

Accounts payable

Accounts payable shows a gradual declining trend from March 2020, beginning at 14,963 million US dollars and steadily decreasing throughout 2020 and 2021 to a low of 9,261 million US dollars in December 2021. Beginning in 2022, accounts payable stabilizes with minor fluctuations, generally staying between 8,700 and 11,000 million US dollars. In 2023 and early 2024, the amount remains relatively stable, around 10,200 to 11,900 million US dollars, despite some minor increases in mid-year periods. Toward the latest periods, slight decreases are observable but with limited magnitude, pointing to a stabilization phase after the initial sharp decline in payable amounts during the early periods.

Payables turnover ratio

The payables turnover ratio, available from March 2021 onwards, initially increased steadily from approximately 4.94 to a peak near 6.73 by September 2025. Early in the period, the ratio showed significant improvement from around 4.9 up to above 6.0 during late 2021 and early 2022, suggesting faster payments relative to purchases. The ratio demonstrated minor fluctuations thereafter, mostly staying in the range of 5.6 to 6.7, which indicates consistent efficiency in managing payables without major volatility. This rising trend in turnover ratio may reflect more effective working capital management or strategic payment scheduling over time.

Working Capital

Working capital showed high volatility over the periods analyzed. It started at 16,509 million USD at the end of Q1 2020, peaked significantly at 38,705 million USD in Q3 2020, and then generally declined through 2021 and into early 2023. From mid-2023 onwards, working capital exhibited fluctuations, showing a notable increase to 17,809 million USD in Q2 2024, followed by a sharp drop and a moderate rise toward mid-2025. This pattern suggests variability in short-term assets and liabilities management, with possible operational or market-driven influences affecting liquidity positions.

Revenues

Revenues experienced multiple oscillations throughout the periods. Initial revenues were 16,908 million USD in Q1 2020, decreased to a low in Q2 2020 at 11,807 million USD, followed by gradual recovery and fluctuations. Revenues generally trended upwards from late 2021, peaking at 22,018 million USD in Q4 2023. Fluctuations continued into 2024 and 2025, with revenues dropping to 15,242 million USD in Q1 2025 before rising again to 22,749 million USD in Q2 2025. This indicates an inconsistent but overall positive revenue trajectory with potential seasonality and market factors influencing sales.

Working Capital Turnover Ratio

The working capital turnover ratio data begins from Q1 2021 and shows a clear upward trend over the periods analyzed. Starting at a ratio of 1.69, it increased steadily to reach a peak of 6.04 in Q1 2024. This suggests improved efficiency in generating revenues from working capital over time. However, following this peak, the ratio declined significantly to 2.15 by Q2 2024 before rising again toward moderate levels around 3.15 by mid-2025. The fluctuations in turnover ratio imply variability in operational efficiency and possibly reflect changing dynamics between revenue generation and working capital levels.

Overall Trends and Insights

The data reveals a complex relationship between working capital levels, revenues, and turnover efficiency. Sustained revenue recovery and growth beyond 2020 are notable, reflecting a rebound from earlier declines. Nevertheless, the working capital values do not consistently support this trend, showing significant instability instead, which could indicate challenges in managing current assets and liabilities. The working capital turnover ratio's peak in early 2024 points to periods of enhanced operational efficiency, though subsequent volatility suggests this efficiency is not consistently maintained. The interplay of these factors suggests a company navigating fluctuating market conditions, balancing liquidity, and seeking improved asset utilization amid varying revenue outcomes.

Inventory Turnover Ratio

The inventory turnover ratio data starts from the first quarter of 2021, showing an initial value of 0.78, which slightly declines to a low of 0.74 by mid-2021. It then exhibits a gradual upward trend toward the end of 2022 and early 2023, reaching a peak of 0.88 in the third quarter of 2023. After maintaining high levels around 0.87 to 0.88, the ratio declines somewhat in late 2023 and early 2024, before showing some recovery toward mid-2025 with values approaching 0.86. Overall, the ratio indicates modest fluctuations but a general improvement compared to early 2021.

Average Inventory Processing Period

The average inventory processing period, which inversely correlates with the inventory turnover ratio, starts at 467 days in the first quarter of 2021. It then increases, peaking near 496 days in the second quarter of 2021, before progressively decreasing through 2022 and into early 2023, reaching its lowest point near 416 days in the third quarter of 2023. This decline reflects an improvement in inventory management efficiency. After this minimum, there is a gradual increase again, with the period rising to about 470 days by early 2024, followed by fluctuations and a modest reduction to 424 days by mid-2025. The trend in days corresponds inversely with the turnover ratio patterns, indicating cyclical alterations in inventory handling times.

Summary of Trends and Insights

The data suggests an initial phase of lower inventory efficiency in early 2021, followed by a measurable improvement up to late 2023, as seen from increasing turnover ratios and declining processing days. However, this improvement is not entirely sustained, with some regression in efficiency after late 2023 indicated by decreased turnover and increased processing days. Fluctuations in the latter part of the period point to intermittent challenges or adjustments in inventory management processes. The overall pattern reflects a dynamic approach to inventory optimization with responsiveness to market or operational conditions over the observed quarterly periods.

The analysis of the receivables turnover ratio and the average receivable collection period over the reported periods reveals notable fluctuations in the company's efficiency in managing its receivables.

Receivables Turnover Ratio

The receivables turnover ratio starts from a high value of 29.75 and generally exhibits a fluctuating but overall downward trend with some periods of recovery. Initially, the ratio declines to values around the low 20s and mid-20s, reaching a low of 20.27. It then recovers somewhat, attaining values close to or above 25 in several subsequent quarters. Towards the most recent periods, the ratio again experiences variability, ending lower than some preceding peaks at around 21.67 before slightly increasing to 23.61. This pattern indicates variable effectiveness in receivables management, with some periods of stronger turnover intensity and others with weakened collection performance.

Average Receivable Collection Period

The average receivable collection period, expressed in days, shows a complementary inverse pattern relative to the turnover ratio. It begins at around 12 days, extending gradually to a peak of 18 days. Following this peak, the days outstanding generally oscillate between 14 and 16 days with occasional drops to 12 days, indicating moderate variability in the time taken to collect receivables. In the final periods, the collection period stabilizes around 15 days with minor fluctuations, suggesting that while there is some inconsistency, the overall collection timeframe remains within a restrained range over time.

Overall, the data implies that the company experiences cyclical variations in its receivables management efficiency, with periods of improved turnover and shorter collection periods alternated by phases of reduced turnover and longer collection durations. These trends deserve attention for potential operational improvements to stabilize and enhance the accounts receivable processes.

The data reveals the trends of key operational efficiency metrics: average inventory processing period, average receivable collection period, and operating cycle, over multiple quarters.

Average Inventory Processing Period

The average inventory processing period shows a general pattern of fluctuations with a slight overall downward trend towards the later periods. Initially, from March 2021 through June 2022, the period fluctuates mostly between 468 and 494 days. From September 2022 onward, there is a notable gradual decline from 468 days to a low of 415 days by March 2024. This downward movement suggests improving efficiency in inventory processing. However, occasional upward spikes appear, notably in June 2024 and December 2024, indicating some variability in inventory management.

Average Receivable Collection Period

The average receivable collection period remains relatively stable with minor fluctuations ranging mostly between 12 and 18 days. From March 2021 to March 2023, the collection period hovers around 14 to 16 days, implying consistent credit management. There is an observable dip to around 12 days in March 2024, indicating improved receivables turnover, but the period rises again afterward, signaling some irregularity in collection speed towards June 2025.

Operating Cycle

The operating cycle, which combines inventory and receivables turnover, mirrors the trends observed in the inventory processing period. It peaks around mid-2021 with values over 500 days, then generally decreases after mid-2022, reaching a minimum near early 2024. This indicates a general improvement in converting inventory and receivables into cash during this period. Similar to inventory processing, the operating cycle shows intermittent increases after early 2024, suggesting some volatility in operational efficiency.

Overall, the data reflects a trend of improving operational efficiency from mid-2022 through early 2024, demonstrated by reductions in both inventory processing time and the operating cycle. The receivable collection period remains stable with slight variances, indicating consistent credit and collection practices. Post early 2024, some irregularities and increases in these metrics suggest challenges or changes affecting operational processes.

Payables turnover

The payables turnover ratio exhibits an upward trend starting from a value of 4.94 in the quarter ending March 31, 2020, progressively increasing to 6.72 by June 30, 2025. Initially, there is a steady increase from approximately 4.9 to a peak of 6.73 in mid-2022. Subsequently, minor fluctuations occur, with values generally staying above 6.0, followed by a slight dip near the end of 2023 and early 2024. Toward the end of the period, the ratio rebounds and reaches the highest levels observed at 6.72, indicating a more frequent turnover of payables, which may reflect improved management of obligations or possibly shorter supplier payment terms.

Average payables payment period

The average payables payment period inversely correlates with the payables turnover ratio, starting at 74 days in the earlier quarters around March to June 2020. It demonstrates a clear downward trend, reducing to a range between 54 to 59 days during 2021 and 2022, with slight oscillations within this band. Around the transition from 2023 to 2024, there is a moderate increase, reaching a peak of 65 days in late 2023, followed by a steady decline once again to 54 days by June 2025. This trend indicates a shortening of the time taken to settle payables over the long term despite some temporary elongations, suggesting enhanced cash outflow management or changes in credit terms with suppliers.

Overall insights

Overall, the data reflects a trend toward more efficient payables management, with an increase in the payables turnover ratio and a corresponding decrease in the average payment period over the analyzed timeframe. Occasional fluctuations are present, likely due to operational adjustments or external factors affecting payment cycles. The progressive improvement in these metrics may signal better liquidity management and supplier relations over the five-year period.

The data reveals several key trends regarding the company's liquidity and operational efficiency over multiple quarterly periods.

Average inventory processing period

This metric starts at 467 days in the earliest available period (March 31, 2021), showing a slight increase to 496 days by June 30, 2021, before experiencing fluctuating declines and occasional rises over subsequent quarters. By December 31, 2023, the period decreases to its lowest recorded point near 416 days, indicating improvements in inventory turnover. However, some resurgence occurs after this point, reaching around 470 days by September 2024, followed by a reduction to 424 days by June 30, 2025.

Average receivable collection period

This period begins at 12 days and generally fluctuates between 12 and 18 days throughout the observed timeframe. The pattern lacks a clear directional trend, with peaks at 18 days and valleys near 12 days, suggesting relatively stable but cyclic variability in the efficiency of receivable collections.

Average payables payment period

The payables payment period shows a clear downward trend from 74 days in the early periods to around 54 days by mid-2025. This decrease suggests a strategic shift toward faster payments to suppliers over time, possibly impacting the company’s short-term cash management.

Cash conversion cycle

The cash conversion cycle starts at a high value of 405 days early on and peaks at around 453 days several times within 2021 and 2022. Thereafter, there is a gradual decline to 373 days by December 31, 2023, indicating improved overall efficiency in managing working capital components. Despite some variability, with cycles rising again to about 421 days by September 2024, the trend ends on a positive note with a decrease to 385 days by mid-2025.

In summary, improvements are evident in the inventory processing and cash conversion cycle metrics over the analyzed periods, highlighting enhanced operational efficiency. The consistent reduction in payables days reflects a more prompt payment approach, while the receivables collection period remains relatively stable but variable without a definitive trend. Overall, the data suggests ongoing efforts to optimize working capital management, though fluctuations in specific metrics indicate periodic challenges or adjustments.