Stock Analysis on Net

Boeing Co. (NYSE:BA)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Boeing Co., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (77) (2,910) (2,649) (8,306) (1,241)
Invested capital2 44,883 50,833 49,413 47,630 35,543
Performance Ratio
ROIC3 -0.17% -5.73% -5.36% -17.44% -3.49%
Benchmarks
ROIC, Competitors4
Caterpillar Inc. 17.41% 13.36% 12.38% 6.44% 11.83%
Cummins Inc. 4.88% 10.36% 14.75% 11.55% 17.13%
General Electric Co. 20.95% 2.73% -2.53% 5.22% 2.37%
Honeywell International Inc. 12.37% 11.54% 12.33% 10.85% 15.49%
Lockheed Martin Corp. 25.46% 21.60% 22.51% 25.67% 26.53%
RTX Corp. 3.68% 4.11% 4.41% -1.38% 7.00%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -77 ÷ 44,883 = -0.17%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Boeing Co. ROIC deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Decomposition of ROIC

Boeing Co., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 -0.17% = 0.85% × 1.73 × -11.76%
Dec 31, 2022 -5.73% = -3.49% × 1.31 × 100.00%
Dec 31, 2021 -5.36% = -3.17% × 1.26 × 100.00%
Dec 31, 2020 -17.44% = -20.02% × 1.22 × 100.00%
Dec 31, 2019 -3.49% = -1.80% × 2.15 × 100.00%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »


Operating Profit Margin (OPM)

Boeing Co., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (77) (2,910) (2,649) (8,306) (1,241)
Add: Cash operating taxes2 736 588 676 (3,337) (140)
Net operating profit before taxes (NOPBT) 658 (2,323) (1,973) (11,643) (1,381)
 
Revenues 77,794 66,608 62,286 58,158 76,559
Profitability Ratio
OPM3 0.85% -3.49% -3.17% -20.02% -1.80%
Benchmarks
OPM, Competitors4
Caterpillar Inc. 20.95% 17.38% 18.88% 11.93% 16.28%
Cummins Inc. 6.80% 11.71% 13.19% 12.82% 13.49%
General Electric Co. 17.53% 4.46% -2.35% 12.65% 6.66%
Honeywell International Inc. 20.28% 19.83% 21.58% 20.26% 21.22%
Lockheed Martin Corp. 13.04% 11.60% 11.85% 13.19% 12.87%
RTX Corp. 7.71% 10.88% 9.65% -1.08% 12.79%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Revenues
= 100 × 658 ÷ 77,794 = 0.85%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Boeing Co. OPM deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Turnover of Capital (TO)

Boeing Co., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenues 77,794 66,608 62,286 58,158 76,559
Invested capital1 44,883 50,833 49,413 47,630 35,543
Efficiency Ratio
TO2 1.73 1.31 1.26 1.22 2.15
Benchmarks
TO, Competitors3
Caterpillar Inc. 1.11 1.03 0.87 0.72 0.92
Cummins Inc. 1.66 1.25 1.38 1.14 1.56
General Electric Co. 1.29 1.10 0.99 0.63 0.67
Honeywell International Inc. 0.76 0.76 0.72 0.67 0.86
Lockheed Martin Corp. 2.46 2.48 2.34 2.33 2.33
RTX Corp. 0.62 0.59 0.56 0.49 0.75

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).

1 Invested capital. See details »

2 2023 Calculation
TO = Revenues ÷ Invested capital
= 77,794 ÷ 44,883 = 1.73

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Boeing Co. TO improved from 2021 to 2022 and from 2022 to 2023.

Effective Cash Tax Rate (CTR)

Boeing Co., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (77) (2,910) (2,649) (8,306) (1,241)
Add: Cash operating taxes2 736 588 676 (3,337) (140)
Net operating profit before taxes (NOPBT) 658 (2,323) (1,973) (11,643) (1,381)
Tax Rate
CTR3 111.76%
Benchmarks
CTR, Competitors4
Caterpillar Inc. 25.26% 25.48% 24.33% 25.06% 21.38%
Cummins Inc. 56.67% 28.93% 18.99% 21.24% 18.60%
General Electric Co. 7.01% 44.47% 34.06% 47.14%
Honeywell International Inc. 19.41% 23.25% 20.13% 20.56% 15.05%
Lockheed Martin Corp. 20.72% 24.95% 18.89% 16.51% 11.49%
RTX Corp. 22.52% 36.10% 18.64% 26.56%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 736 ÷ 658 = 111.76%

4 Click competitor name to see calculations.