Boeing: Selling The $83 Billion Inventories Is Essential To A Stronger Buy

Summary:

• Boeing’s turnaround plan focuses on stabilizing production, reducing inventories, and improving free cash flows to regain competitive positioning.
• Current inventories stand at $83 billion, with $72.1 billion tied to commercial airplane programs, highlighting significant potential for inventory reduction.
• Shutting down shadow factories and delivering stored airplanes will streamline operations, freeing resources for new production.
• Reducing inventories by delivering Boeing 787 and 737 MAX could cut physical commercial airplane inventories by 35%, enhancing balance sheet health and driving recovery.

Boeing (NYSE:BA) is working on a huge turnaround, which amongst other things, includes stabilizing production, selling non-core businesses and improving liquidity to address debt maturities in the years ahead. All of this should result in better free cash

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