Boeing Co. (NYSE:BA)

The company’s total debt, encompassing finance lease obligations and commercial paper, exhibited a fluctuating pattern over the five-year period. Initial values decreased before stabilizing and then increasing again.

Overall Trend

Total debt began at US$58.102 billion in 2021, decreased to US$57.001 billion in 2022, and continued to decline to US$52.307 billion in 2023. A slight increase was observed in 2024, reaching US$53.864 billion, followed by a further increase to US$54.098 billion in 2025. This suggests a period of debt reduction followed by a modest resumption of borrowing.

Short-Term Debt

Short-term debt and the current portion of long-term debt demonstrated significant volatility. It increased substantially from US$1.296 billion in 2021 to US$5.190 billion in 2022, remaining relatively stable at US$5.204 billion in 2023. A substantial decrease occurred in 2024, falling to US$1.278 billion, before rising sharply to US$8.461 billion in 2025. This indicates a shifting reliance on short-term financing.

Long-Term Debt

Long-term debt, excluding the current portion, generally decreased from US$56.806 billion in 2021 to US$47.103 billion in 2023. An increase to US$52.586 billion was noted in 2024, but it decreased again to US$45.637 billion in 2025. The trend suggests a strategy of reducing long-term obligations, though with some fluctuations.

The interplay between short-term and long-term debt suggests a dynamic capital structure management approach. The increase in short-term debt in 2025, coupled with a decrease in long-term debt, may indicate a strategic shift towards utilizing more flexible, albeit potentially higher-cost, financing options.

The reported interest expenses demonstrate a fluctuating pattern over the five-year period. Overall, interest incurred has shown a slight increasing trend from 2021 to 2025, despite some interim declines.

Total Interest Expense

Interest expense, inclusive of Boeing Capital, decreased from US$2,714 million in 2021 to US$2,561 million in 2022, representing a reduction of approximately 5.6%. A further decrease was observed in 2023, with interest expense falling to US$2,459 million. However, expenses began to rise again in 2024, reaching US$2,725 million, and continued to increase in 2025 to US$2,771 million. This indicates a potential stabilization or modest increase in borrowing costs towards the end of the period.

Interest Capitalized

Interest capitalized exhibited a consistent upward trend throughout the observed period. Starting at US$76 million in 2021, it increased to US$89 million in 2022, and US$101 million in 2023. The rate of increase accelerated in 2024, reaching US$149 million, and continued to rise to US$185 million in 2025. This suggests a growing level of qualifying assets under construction or development where borrowing costs are being added to the asset's value rather than expensed immediately.

Total Interest Incurred

Total interest incurred, which includes both expensed and capitalized interest, mirrored the trend of the overall interest expense. It decreased from US$2,790 million in 2021 to US$2,650 million in 2022, then to US$2,560 million in 2023. A subsequent increase was noted in 2024, with total interest incurred rising to US$2,874 million, and further increasing to US$2,956 million in 2025. The increase in capitalized interest partially offset the fluctuations in interest expense, but the overall trend indicates a rising cost of borrowing when considering all interest obligations.

The increasing trend in interest capitalization suggests potential growth in long-term projects or asset development. The fluctuations in total interest incurred warrant further investigation to determine the underlying drivers, such as changes in debt levels, interest rates, or the mix of fixed versus floating rate debt.

The observed interest coverage ratios demonstrate significant volatility over the five-year period. Initially, both the standard and adjusted ratios were negative, indicating an inability to cover interest expense with earnings before interest and taxes. A brief period of positive coverage emerged in 2023, followed by a substantial decline in 2024, before recovering in 2025.

Interest Coverage Ratio (without capitalized interest)

This ratio began at -0.88 in 2021 and decreased to -0.98 in 2022, signifying a worsening ability to meet interest obligations. A positive value of 0.18 was recorded in 2023, suggesting a temporary improvement in earnings relative to interest expense. However, this was short-lived, as the ratio fell sharply to -3.48 in 2024, before a recovery to 1.95 in 2025. The fluctuations suggest considerable earnings instability or changes in interest expense.

Adjusted Interest Coverage Ratio (with capitalized interest)

The adjusted ratio mirrored the trend of the standard ratio. Starting at -0.84 in 2021, it declined to -0.94 in 2022. Similar to the standard ratio, 2023 saw a positive value of 0.18, followed by a substantial decrease to -3.30 in 2024. The ratio concluded the period with a value of 1.83 in 2025. The inclusion of capitalized interest appears to have a limited impact on the overall trend, though it consistently results in a slightly higher ratio value compared to the non-adjusted measure.

Overall Trend

The period is characterized by initial weakness in interest coverage, a brief improvement in 2023, a significant deterioration in 2024, and a subsequent recovery in 2025. The negative values in 2021, 2022, and 2024 indicate periods where earnings were insufficient to cover interest payments, potentially requiring reliance on financing or asset sales to meet obligations. The return to positive values in 2023 and 2025 suggests improved profitability or reduced interest burdens during those years.