BA,... Cash flow concerns on the horizon for Boeing, UBS analysts say
It's all about the cash flow at Boeing (BA -1.3%), which worries UBS analysts that forecast the company's total cash from prepayments will average ~$2B in 2015-17, $2B-$3B lower than recent averages.
The firm says Boeing’s cash flow benefited from ~$7B in total customer prepayments in 2014 and $4B-$5B on average during 2011-14, which included $3.1B from customer advances in 2014 while progress payments provided an additional $3.8B.
UBS calculates Boeing has generated $228M in cash from prepayments in H1, including $198M from customer advances and $30M from progress payments; while customer advances were a $621M cash benefit in Q2, negative progress payments at $383M partially offset.
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