Boeing Co. (NYSE:BA)

Inventory Turnover

The inventory turnover ratio demonstrates a generally positive trend over the analyzed periods. Starting at 0.74 in March 2021, it gradually increased to 0.97 by September 2025, indicating an improvement in the efficiency of inventory management. Notable fluctuations include a peak of 0.88 at the end of 2023, followed by a slight dip, and then recovery toward the end of the period.

Receivables Turnover

The receivables turnover ratio exhibits some variability without a clear upward or downward trend. It fluctuated between approximately 20.27 and 29.37 throughout the examined quarters, with the highest value observed in December 2023. These variations suggest changes in credit policy effectiveness or customer payment behavior but no consistent improvement or deterioration.

Payables Turnover

The payables turnover ratio generally increased from 4.9 in March 2021 to 6.81 by September 2025, reflecting a tendency towards quicker payment of obligations to suppliers. The ratio shows moderate fluctuations but an overall trend of increased turnover, indicating possibly strengthened supplier relationships or adjusted payment terms.

Working Capital Turnover

Working capital turnover shows a strong upward trend, rising from 1.88 in March 2021 to a peak of 6.04 in September 2024 and concluding at 4.29 by September 2025. Although some volatility is evident, this increase indicates enhanced efficiency in utilizing working capital to generate revenue, with a notable peak in 2024 followed by a moderate decline.

Average Inventory Processing Period

The average inventory processing period generally shortened over the period, moving from 496 days in March 2021 to 377 days in September 2025. This decline suggests improved inventory turnover speed and potentially better inventory management practices, despite intermittent periods of minor increases.

Average Receivable Collection Period

The average receivable collection period remained relatively stable, oscillating mostly between 12 and 18 days. This steadiness suggests consistent credit and collection policies with no significant changes in customer payment patterns.

Operating Cycle

The operating cycle duration shows a gradual decrease from 511 days in March 2021 to 392 days by September 2025. This contraction points to improved efficiency in the overall management of inventory and receivables relative to payables across the company's operation.

Average Payables Payment Period

The average payables payment period decreased slightly from 74 days in March 2021 to 54 days by September 2025, with some fluctuations. This trend indicates that the company is paying its suppliers faster over time, which aligns with the increasing payables turnover ratio observed.

Cash Conversion Cycle

The cash conversion cycle shows a consistent downward trend, decreasing from 437 days in March 2021 to 338 days in September 2025. This marked reduction suggests significant improvements in managing the time taken to convert inventory and receivables into cash, lessening the duration for which capital is tied up in the operational process.

Cost of Products and Services

The cost of products and services showed variability across the reported quarters. Starting at 13,799 million USD in March 2021, it rose to a peak of 18,116 million USD by the end of 2022. The cost then experienced fluctuations throughout 2023 and 2024, with notable increases in September 2024 (21,347 million USD) and a substantial surge projected in March 2025 reaching 25,645 million USD. Overall, the trend indicates increasing costs with some volatility, particularly pronounced in late 2024 and early 2025.

Inventories

Inventory levels remained relatively stable with minor oscillations over the periods. From 82,668 million USD in March 2021, inventories slightly decreased towards the end of 2021, fluctuated modestly through 2022 and 2023, and showed a general upward movement through 2024, peaking at 89,077 million USD in June 2025. However, there is a slight decline post this peak by September 2025 to 82,425 million USD. This stability with moderate increases suggests controlled inventory management with some build-up towards mid-2025.

Inventory Turnover Ratio

The inventory turnover ratio demonstrated a gradual improvement over time, indicating more efficient inventory utilization. Beginning at 0.74 in March 2021, the ratio steadily increased, reaching 0.88 by December 2022 and maintaining levels close to this figure into 2023. Although small dips were observed during 2024, notably at 0.78 in June and December 2024, the ratio rebounded in the subsequent quarters, culminating in a significant improvement to 0.97 by September 2025. This trend reflects enhanced operational efficiency in converting inventory into sales or products/services over the observed periods.

Summary

The data reflects rising costs of products and services alongside stable to slightly increasing inventory levels. There is a clear trend of improved inventory turnover, suggesting gains in efficiency despite the upward pressure on costs. The combination of increasing costs and more effective inventory management may indicate strategic adjustments in production or supply chain processes. The marked cost increase in late 2024 and early 2025 warrants attention for potential impacts on profitability or pricing strategies.

Revenue Trends

Revenues exhibit a fluctuating pattern across the observed quarters, with values ranging approximately between $13.9 billion and $23.3 billion. Initial quarters show moderate variation, with some downward movement in early 2022 followed by recovery and growth towards the end of 2022 and into 2023. A notable peak occurs in the fourth quarter of 2023, reaching over $22 billion, followed by variability in 2024 marked by a decline in early 2024 and moderate recovery later in the year. The data from 2025 shows strong growth, culminating in revenues surpassing $23 billion by the third quarter.

Accounts Receivable, Net

The net accounts receivable amounts generally trend upward, reflecting growing outstanding customer balances in proportion to the business activity. Beginning around $2.36 billion in the first quarter of 2021, values increase with some fluctuations, reaching approximately $3.3 billion by the third quarter of 2025. Periods of decline or stabilization occur sporadically but are typically followed by renewed increases, indicating cyclical patterns possibly tied to seasonal business cycles or billing practices.

Receivables Turnover Ratio

The receivables turnover ratio varies from about 20.27 to nearly 29.37 during the observation period, reflecting changes in the efficiency of collecting receivables. The ratio experiences a dip during mid-2022, pointing to slower collection processes or extended payment terms, followed by a recovery peak in late 2023. In 2024 and 2025, the turnover ratio stabilizes between approximately 21 and 25, suggesting a consistent approach to receivables management despite fluctuations in outstanding balances and revenues.

Overall Insights

The revenue increases, especially towards the end of the periods presented, combined with rising accounts receivable, suggest growing sales volume or extended credit terms. However, the relatively stable receivables turnover ratio indicates that the company maintains reasonable control over its receivables collection processes. The fluctuation in turnover ratios, particularly the lower values during mid-2022, may warrant monitoring to ensure continued efficiency in cash conversion. The data also point to seasonality or cyclical influences affecting both revenues and receivables, which are typical in industries with large contract cycles and phased deliveries.

The financial data reflects significant fluctuations in key operational metrics over the observed periods, indicating dynamic shifts in cost management and payment cycles.

Cost of Products and Services

The cost exhibited a generally volatile trend with notable peaks and troughs across quarters. Initial values were around $13.8 billion, experiencing an increase to approximately $17.3 billion by the end of 2021. Subsequent periods showed alternating declines and rises, with the highest cost reaching over $25.6 billion by the third quarter of 2025. This pattern suggests variable production or procurement expenses, possibly influenced by changing demand, input costs, or operational scale adjustments.

Accounts Payable

Accounts payable started at approximately $12.4 billion and showed a declining trend until the first quarter of 2022, reaching about $8.8 billion. From that point onwards, there was a gradual increase and stabilization around the $11 billion to $12 billion range, persisting through to 2025. This suggests a cautious approach to payables management, potentially balancing cash flow needs with supplier terms.

Payables Turnover Ratio

The payables turnover ratio generally increased from 4.9 in the first quarter of 2021 to a peak near 6.8 by the third quarter of 2025, denoting an improved rate of paying off suppliers. The ratio showed some fluctuations, with a slower turnover observed toward the end of 2023 and early 2024 before rising again. The upward trajectory indicates enhanced efficiency in managing payables, possibly reflecting stronger liquidity or renegotiated payment terms allowing faster settlement of obligations.

Overall, the trends highlight fluctuations in costs, a relatively steady control over accounts payable levels after initial decreases, and a positive momentum in the speed of payables turnover. The interplay of these metrics may be indicative of evolving operational strategies aimed at optimizing cost structures while maintaining supplier relationships and cash flow effectiveness.

The analysis of the quarterly financial data reveals several significant trends and changes in working capital, revenues, and working capital turnover ratios over the observed periods.

Working Capital

The working capital demonstrates a general downward trend from March 2021 through December 2024, with fluctuations throughout the quarters. Initially, the working capital starts at 30,053 million USD and decreases gradually, reaching a low point near the end of 2024 at 12,136 million USD in September 2024. Notably, there is a temporary increase in March 2024 (17,809 million USD) and a sharp rise in December 2024 (30,920 million USD), followed by another decrease in subsequent quarters. This suggests some periods of increased liquidity or improved short-term assets relative to liabilities, but the overall downward movement could indicate tighter working capital management or potential liquidity constraints in certain quarters.

Revenues

Revenues fluctuate more moderately but indicate a general pattern of cyclical peaks and troughs over the quarters. Starting at 15,217 million USD in March 2021, revenues show notable increases during mid-year quarters with peaks such as 19,980 million USD in December 2021 and recurring strong performances near the end of 2023 and 2025, reaching 23,270 million USD in September 2025. There are some mid-year dips that correspond with the working capital fluctuations, but overall revenues maintain an upward trajectory towards the latter part of the period, illustrating relative growth in operational income.

Working Capital Turnover

The working capital turnover ratio, which measures how efficiently working capital is used to generate revenues, exhibits a marked upward trend from 1.88 in March 2021 to as high as 6.04 in September 2024. This increase implies enhanced efficiency in using working capital to generate sales. However, after this peak, the ratio declines substantially to around 2.15 in December 2024 before increasing again to 4.29 by September 2025. The rising trend in turnover ratio until late 2024 aligns with the decreasing working capital, implying that revenues are being generated with less capital tied up in working capital. The subsequent decrease and rebound suggest some volatility in operational efficiency or changes in working capital policies.

In summary, the data indicate an overall effort to improve capital efficiency as demonstrated by increasing working capital turnover, despite some volatility in working capital levels. Revenues show a pattern of growth with cyclical variations, contributing to changing efficiency dynamics. The interplay between declining working capital and rising turnover ratio suggests strategic attempts to optimize short-term resource management alongside revenue generation, though fluctuations point to intermittent challenges in maintaining consistent liquidity and operational efficiency.

Inventory Turnover

The inventory turnover ratio exhibits a generally increasing trend over the analyzed periods. Beginning around 0.74-0.76 in early 2021, the ratio steadily rises, reaching approximately 0.88 by the end of 2023. Despite some minor fluctuations in 2024, the ratio continues its upward trajectory, culminating at 0.97 by the third quarter of 2025. This suggests an improved efficiency in managing inventory, with the company able to sell and replace inventory at a faster rate over time.

Average Inventory Processing Period

The average inventory processing period shows a corresponding downward trend, indicative of shorter durations required to process inventory. Starting from a high of 496 days in March 2021, the period decreases significantly, with some fluctuations, reaching its lowest recorded value of 377 days in September 2025. The downward trend aligns with the increasing inventory turnover ratio, reinforcing the conclusion of enhanced inventory management and quicker processing cycles.

Overall Analysis

The inverse relationship between the inventory turnover ratio and the average inventory processing period is evident, confirming operational improvements in inventory control. The gradual improvement in turnover and reduction in processing time over the nearly five-year span signal a positive development in asset management efficiency. Variations in 2024 indicate some intermittent adjustments or operational challenges, but the fundamental trend remains favorable by the end of the 2025 third quarter.

The analysis of the receivables turnover ratio over the observed periods reveals notable fluctuations reflecting changes in the efficiency of receivables collection. Initially, the ratio demonstrates a generally stable pattern with minor variations around the mid-20s, peaking at 27.95 in September 2021, indicating a relatively efficient collection process during that quarter.

However, subsequent quarters show some volatility, with a marked decrease to 20.27 in June 2022, suggesting a temporary slowdown in collections. This is followed by a recovery period, with the ratio rising again to as high as 29.37 by December 2023, pointing to improvements in managing receivables and possibly enhanced cash flow.

From 2024 onward, the turnover ratio displays a more irregular pattern with oscillations between approximately 21.67 and 25.83, indicating variability in receivables handling efficiency. The ratio's decline toward the mid-20s and lower in some quarters could signal challenges in collection speed or changes in credit terms offered to customers.

The average receivable collection period complements this observation, inversely mirroring the turnover ratio. The collection period starts around 15 days, briefly shortens to 13 days in September 2021, consistent with the peak turnover ratio, then elongates to 18 days by June 2022, corresponding with the turnover dip.

Post-June 2022, average collection days fluctuate between 12 and 16 days, with the shortest period of 12 days reported at December 2023, consistent with the highest turnover ratio in that quarter. This indicates efficient collection cycles during this time. The subsequent periods see an increase back to about 15–17 days, implying modest slowing in the collection process.

Overall, the data suggests that while receivables management has been generally effective, there is evident variability across quarters that could be influenced by operational factors, credit policies, or market conditions. Maintaining a focus on stabilizing the receivables turnover and reducing the collection period could support improved liquidity and working capital management.

Receivables Turnover Ratio

Shows significant variations between 20.27 and 29.37, with peaks in late 2021 and end of 2023 indicating periods of efficient receivables management.

Average Receivable Collection Period

Ranges mostly between 12 and 18 days, with shorter periods aligning with higher turnover ratios, reflecting consistency in underlying trends.

Trends and Implications

Periods of ratio decline and corresponding collection period increase point to moments of reduced collection efficiency. The oscillations suggest the need for ongoing monitoring to ensure consistent receivables performance.

Inventory Processing Period

The average inventory processing period shows a general downward trend from March 2021 to September 2025. Starting at 496 days in March 2021, it fluctuates slightly in the first two years, peaking near 494 days mid-2022 but then gradually declines more consistently afterward. The period shortens to 377 days by September 2025, indicating improved efficiency in inventory turnover over the longer term, despite occasional increases around early 2024 and late 2024.

Receivable Collection Period

The average receivable collection period remains relatively stable over the observed time frame, fluctuating between 12 and 18 days. It begins at 15 days in early 2021, experiences minor variations throughout the quarters, and maintains an average around 14 to 16 days in most periods. There is no significant upward or downward trend, suggesting consistent credit and collection practices.

Operating Cycle

The operating cycle, which combines inventory processing and receivable collection periods, generally follows the pattern of the inventory processing period due to its longer duration. It starts at 511 days in March 2021, experiences some short-term fluctuations, and exhibits a downward trend beginning around early 2023. By September 2025, the operating cycle shortens notably to 392 days, reflecting overall gains in operational efficiency. Temporary increases observed in early and late 2024 correspond with similar movements in the inventory processing period.

The analysis of the payables-related financial ratios over the examined periods reveals distinct patterns in payables turnover and the average payables payment period.

Payables Turnover

The payables turnover ratio shows a generally increasing trend from March 31, 2021, through September 30, 2025. Starting at 4.9, it rises steadily, reaching peaks around the early quarters of 2022, followed by slight fluctuations. Notably, the ratio hovers between approximately 5.6 and 6.8 in the latter periods, indicating a largely stable but elevated turnover relative to earlier years. The increase suggests the company has become more efficient in utilizing credit from suppliers or is reducing its accounts payable balances more rapidly over time.

Average Payables Payment Period

Corresponding inversely with the payables turnover, the average payables payment period in days decreases from 74 days at the beginning of the observation period to lower levels closer to 54 days by the latest quarters. The payment period shows a decline with minor cyclical variations, reflecting a trend towards quicker payments to suppliers. This decrease, from about 74 days to the mid-50s through the course of the timeline, signals improved liquidity management and a potential strengthening of supplier relationships through timelier payments.

Overall, the data suggest an improvement in payables management efficiency, balancing the speed of payment with maintaining favorable credit terms. The faster turnover and shorter payment period indicate a potentially stronger cash conversion cycle and operational discipline in managing payables over the multiple years analyzed.

The analysis of the quarterly financial data reveals several notable trends in the company’s operational efficiency over the evaluated periods.

Average Inventory Processing Period

The inventory processing period shows a generally decreasing trend from March 2021 through September 2025, with fluctuations along the way. It started at 496 days in the first quarter of 2021, reaching a low point of 377 days by the third quarter of 2025. Although there were periodic increases, such as noticeable upticks in the first quarter of 2022 and the fourth quarter of 2024, the overall movement indicates improved inventory turnover and potentially enhanced inventory management efficiency.

Average Receivable Collection Period

The receivable collection period has remained relatively stable across the quarters, fluctuating narrowly between 12 and 18 days. This suggests consistent credit and collections policies. Minor variations without directional trends imply steady control over the collection of receivables.

Average Payables Payment Period

The payables payment period displays a gradual decline from early 2021 into 2025. Starting at 74 days in March 2021, it decreased to 54 days by the third quarter of 2025, with some intermittent increases during 2023 and 2024. This decline may reflect a tighter cash management strategy or improved relations with suppliers through quicker payments.

Cash Conversion Cycle

The cash conversion cycle demonstrates a general downward trend from 437 days in March 2021 to 338 days in the third quarter of 2025, indicating that the company is increasingly efficient at converting its investments in inventory and receivables into cash. Though the cycle rose during some quarters, particularly in early 2022 and late 2024, the overall reduction underscores enhanced operational effectiveness and working capital management.

In summary, the data suggests ongoing improvements in inventory management and cash conversion efficiency, stable receivables collection periods, and a contracting payables payment timeline. These trends point toward better liquidity and operational control over the analyzed period.