Stock Analysis on Net

Boeing Co. (NYSE:BA)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Boeing Co., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 8,093 8,057 8,068 8,081 8,060
Trade names 197 197 197 197 197
In process research and development 202 202 202 202 202
Indefinite-lived intangible assets 399 399 399 399 399
Distribution rights 2,545 2,546 2,554 2,812 2,989
Product know-how 552 552 553 553 553
Customer base 1,358 1,356 1,360 1,373 1,364
Developed technology 638 621 626 626 653
Other 280 276 301 303 280
Acquired finite-lived intangible assets, gross carrying amount 5,373 5,351 5,394 5,667 5,839
Accumulated amortization (3,678) (3,439) (3,231) (3,223) (2,900)
Acquired finite-lived intangible assets, net 1,695 1,912 2,163 2,444 2,939
Acquired intangibles 2,094 2,311 2,562 2,843 3,338
Goodwill and acquired intangibles 10,187 10,368 10,630 10,924 11,398

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Boeing Co. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Acquired intangibles Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Boeing Co. acquired intangibles decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and acquired intangibles Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Boeing Co. goodwill and acquired intangibles decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

Boeing Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 137,012 137,100 138,552 152,136 133,625
Less: Goodwill 8,093 8,057 8,068 8,081 8,060
Total assets (adjusted) 128,919 129,043 130,484 144,055 125,565
Adjustment to Shareholders’ Deficit
Shareholders’ deficit (as reported) (17,233) (15,883) (14,999) (18,316) (8,617)
Less: Goodwill 8,093 8,057 8,068 8,081 8,060
Shareholders’ deficit (adjusted) (25,326) (23,940) (23,067) (26,397) (16,677)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).


Boeing Co., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Boeing Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.57 0.49 0.45 0.38 0.57
Adjusted total asset turnover 0.60 0.52 0.48 0.40 0.61
Financial Leverage
Reported financial leverage
Adjusted financial leverage
Return on Equity (ROE)
Reported ROE
Adjusted ROE
Return on Assets (ROA)
Reported ROA -1.62% -3.60% -3.03% -7.80% -0.48%
Adjusted ROA -1.72% -3.82% -3.22% -8.24% -0.51%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Boeing Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Boeing Co. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Boeing Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues 77,794 66,608 62,286 58,158 76,559
Total assets 137,012 137,100 138,552 152,136 133,625
Activity Ratio
Total asset turnover1 0.57 0.49 0.45 0.38 0.57
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 77,794 66,608 62,286 58,158 76,559
Adjusted total assets 128,919 129,043 130,484 144,055 125,565
Activity Ratio
Adjusted total asset turnover2 0.60 0.52 0.48 0.40 0.61

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 77,794 ÷ 137,012 = 0.57

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 77,794 ÷ 128,919 = 0.60

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Boeing Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 137,012 137,100 138,552 152,136 133,625
Shareholders’ deficit (17,233) (15,883) (14,999) (18,316) (8,617)
Solvency Ratio
Financial leverage1
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 128,919 129,043 130,484 144,055 125,565
Adjusted shareholders’ deficit (25,326) (23,940) (23,067) (26,397) (16,677)
Solvency Ratio
Adjusted financial leverage2

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ deficit
= 137,012 ÷ -17,233 =

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ deficit
= 128,919 ÷ -25,326 =


Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net loss attributable to Boeing Shareholders (2,222) (4,935) (4,202) (11,873) (636)
Shareholders’ deficit (17,233) (15,883) (14,999) (18,316) (8,617)
Profitability Ratio
ROE1
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net loss attributable to Boeing Shareholders (2,222) (4,935) (4,202) (11,873) (636)
Adjusted shareholders’ deficit (25,326) (23,940) (23,067) (26,397) (16,677)
Profitability Ratio
Adjusted ROE2

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net loss attributable to Boeing Shareholders ÷ Shareholders’ deficit
= 100 × -2,222 ÷ -17,233 =

2 Adjusted ROE = 100 × Net loss attributable to Boeing Shareholders ÷ Adjusted shareholders’ deficit
= 100 × -2,222 ÷ -25,326 =


Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net loss attributable to Boeing Shareholders (2,222) (4,935) (4,202) (11,873) (636)
Total assets 137,012 137,100 138,552 152,136 133,625
Profitability Ratio
ROA1 -1.62% -3.60% -3.03% -7.80% -0.48%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net loss attributable to Boeing Shareholders (2,222) (4,935) (4,202) (11,873) (636)
Adjusted total assets 128,919 129,043 130,484 144,055 125,565
Profitability Ratio
Adjusted ROA2 -1.72% -3.82% -3.22% -8.24% -0.51%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net loss attributable to Boeing Shareholders ÷ Total assets
= 100 × -2,222 ÷ 137,012 = -1.62%

2 Adjusted ROA = 100 × Net loss attributable to Boeing Shareholders ÷ Adjusted total assets
= 100 × -2,222 ÷ 128,919 = -1.72%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Boeing Co. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.