Profitability Analysis

Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).


Ratios (Summary)

Boeing Co., profitability ratios

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Return on Sales
Gross profit margin 15.42% 15.98% 18.72% 19.38% 17.20%
Operating profit margin 7.58% 7.72% 8.50% 7.73% 3.07%
Net profit margin 5.29% 4.77% 5.85% 5.14% 1.92%
Return on Investment
Return on equity (ROE) 30.82% 66.47% 114.31% 119.56% 61.65%
Return on assets (ROA) 4.95% 4.39% 5.02% 4.82% 2.11%

Source: Based on data from Boeing Co. Annual Reports

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Boeing Co.'s gross profit margin deteriorated from 2011 to 2012 and from 2012 to 2013.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Boeing Co.'s operating profit margin deteriorated from 2011 to 2012 and from 2012 to 2013.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Boeing Co.'s net profit margin deteriorated from 2011 to 2012 but then slightly improved from 2012 to 2013.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Boeing Co.'s ROE deteriorated from 2011 to 2012 and from 2012 to 2013.
ROA A profitability ratio calculated as net income divided by total assets. Boeing Co.'s ROA deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

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Gross Profit Margin

Boeing Co., gross profit margin calculation

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Gross profit 13,355  13,054  12,868  12,463  11,741 
Revenues 86,623  81,698  68,735  64,306  68,281 
Ratio
Gross profit margin1 15.42% 15.98% 18.72% 19.38% 17.20%

Source: Based on data from Boeing Co. Annual Reports

2013 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 13,355 ÷ 86,623 = 15.42%

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Boeing Co.'s gross profit margin deteriorated from 2011 to 2012 and from 2012 to 2013.

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Operating Profit Margin

Boeing Co., operating profit margin calculation, comparison to benchmarks

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Earnings from operations 6,562  6,311  5,844  4,971  2,096 
Revenues 86,623  81,698  68,735  64,306  68,281 
Ratio
Operating profit margin1 7.58% 7.72% 8.50% 7.73% 3.07%
Benchmarks
Operating Profit Margin, Competitors
United Technologies Corp. 14.70% 13.32% 13.92% 13.23% 12.16%
Operating Profit Margin, Sector
Aerospace 10.57% 10.04% 10.99% 10.25% 7.02%
Operating Profit Margin, Industry
Industrials 11.89% 10.68% 11.73% 12.03% 10.11%

Source: Based on data from Boeing Co. Annual Reports

2013 Calculations

1 Operating profit margin = 100 × Earnings from operations ÷ Revenues
= 100 × 6,562 ÷ 86,623 = 7.58%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Boeing Co.'s operating profit margin deteriorated from 2011 to 2012 and from 2012 to 2013.

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Net Profit Margin

Boeing Co., net profit margin calculation, comparison to benchmarks

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Net earnings related to parent 4,585  3,900  4,018  3,307  1,312 
Revenues 86,623  81,698  68,735  64,306  68,281 
Ratio
Net profit margin1 5.29% 4.77% 5.85% 5.14% 1.92%
Benchmarks
Net Profit Margin, Competitors
United Technologies Corp. 9.14% 8.89% 8.56% 8.05% 7.30%
Net Profit Margin, Sector
Aerospace 6.91% 6.48% 7.09% 6.47% 4.26%
Net Profit Margin, Industry
Industrials 9.07% 8.05% 9.10% 8.44% 6.96%

Source: Based on data from Boeing Co. Annual Reports

2013 Calculations

1 Net profit margin = 100 × Net earnings related to parent ÷ Revenues
= 100 × 4,585 ÷ 86,623 = 5.29%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Boeing Co.'s net profit margin deteriorated from 2011 to 2012 but then slightly improved from 2012 to 2013.

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Return on Equity (ROE)

Boeing Co., ROE calculation, comparison to benchmarks

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Net earnings related to parent 4,585  3,900  4,018  3,307  1,312 
Shareholders’ equity 14,875  5,867  3,515  2,766  2,128 
Ratio
ROE1 30.82% 66.47% 114.31% 119.56% 61.65%
Benchmarks
ROE, Competitors
United Technologies Corp. 17.95% 19.80% 22.76% 20.45% 19.08%
ROE, Sector
Aerospace 22.05% 28.41% 35.43% 31.80% 23.16%
ROE, Industry
Industrials 17.55% 17.94% 20.59% 17.78% 15.05%

Source: Based on data from Boeing Co. Annual Reports

2013 Calculations

1 ROE = 100 × Net earnings related to parent ÷ Shareholders’ equity
= 100 × 4,585 ÷ 14,875 = 30.82%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Boeing Co.'s ROE deteriorated from 2011 to 2012 and from 2012 to 2013.

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Return on Assets (ROA)

Boeing Co., ROA calculation, comparison to benchmarks

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Net earnings related to parent 4,585  3,900  4,018  3,307  1,312 
Total assets 92,663  88,896  79,986  68,565  62,053 
Ratio
ROA1 4.95% 4.39% 5.02% 4.82% 2.11%
Benchmarks
ROA, Competitors
United Technologies Corp. 6.31% 5.74% 8.10% 7.48% 6.87%
ROA, Sector
Aerospace 5.62% 5.06% 6.36% 6.04% 4.36%
ROA, Industry
Industrials 6.96% 6.12% 7.20% 6.63% 5.57%

Source: Based on data from Boeing Co. Annual Reports

2013 Calculations

1 ROA = 100 × Net earnings related to parent ÷ Total assets
= 100 × 4,585 ÷ 92,663 = 4.95%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Boeing Co.'s ROA deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

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