Boeing Co. (NYSE:BA)

The composition of goodwill and intangible assets exhibits notable shifts over the five-year period. Overall, a significant increase in the value of goodwill and acquired intangibles is observed in the final year presented. A detailed examination of individual components reveals varying trends.

Goodwill

Goodwill remained relatively stable between 2021 and 2023, fluctuating within a narrow range of approximately US$8.068 million to US$8.093 million. However, a substantial increase to US$17,275 million is evident in 2025, representing a more than doubling of its value. This warrants further investigation to understand the underlying cause, such as a significant acquisition.

Trade Names & In-process Research and Development

Trade names remained constant at US$197 million throughout the period for which information is available. Similarly, in-process research and development remained constant at US$202 million across all years. This suggests a consistent valuation approach and limited changes in these specific intangible assets.

Indefinite-Lived Intangible Assets

Indefinite-lived intangible assets were consistent at US$399 million from 2021 to 2023, then decreased to US$202 million in 2025. This decline could be due to impairment charges or reclassification of assets.

Finite-Lived Intangible Assets

Distribution rights, product know-how, customer base, developed technology, and other finite-lived intangible assets all demonstrate a general downward trend from 2021 to 2025. The decline is most pronounced in customer base (from US$1,360 million to US$1,217 million) and product know-how (from US$553 million to US$222 million). Accumulated amortization consistently increased, contributing to the net decrease in acquired finite-lived intangible assets. The gross carrying amount of acquired finite-lived intangible assets also decreased over the period, from US$5,394 million to US$4,700 million.

Acquired Intangibles

The total value of acquired intangibles decreased steadily from US$2,562 million in 2021 to US$1,567 million in 2025, mirroring the trends observed in the individual finite-lived components. This suggests a consistent pattern of amortization and potential impairment impacting the overall value.

Goodwill and Acquired Intangibles Combined

The combined value of goodwill and acquired intangibles generally decreased from US$10,630 million in 2021 to US$10,041 million in 2024. However, the significant increase in goodwill in 2025 resulted in a substantial rise to US$18,842 million, driven almost entirely by the change in goodwill value. This represents a significant shift in the company’s intangible asset profile.

The observed trends suggest a period of relatively stable intangible asset values, followed by a substantial change in 2025 primarily attributable to a significant increase in goodwill. The consistent decline in finite-lived intangible assets, coupled with increasing accumulated amortization, indicates a natural reduction in their carrying value over time. The decrease in indefinite-lived intangible assets also requires further scrutiny.

An examination of the financial information reveals a consistent difference between reported and adjusted total assets and shareholders’ equity over the five-year period. The adjustments appear to primarily relate to the removal of goodwill and intangible assets, resulting in a lower reported net asset value and equity position.

Total Assets

Reported total assets experienced a slight decrease from 2021 to 2022, followed by relative stability in 2022 and 2023. A significant increase is then observed in 2024 and 2025. However, adjusted total assets demonstrate a similar pattern of initial decline and subsequent growth, but at consistently lower levels than the reported figures. The difference between reported and adjusted total assets remains relatively stable, approximately $8 billion to $9 billion annually, suggesting a consistent level of goodwill or intangible assets being removed from the adjusted figures.

Shareholders’ Equity

Reported shareholders’ equity transitioned from a substantial deficit to a positive value between 2024 and 2025. Conversely, adjusted shareholders’ equity consistently reflects a deficit throughout the period, and the magnitude of the deficit is larger than the reported equity position. The gap between reported and adjusted shareholders’ equity widened from approximately $8 billion in 2021 to around $17 billion in 2023, before narrowing somewhat in 2024 and 2025. This indicates that the removal of goodwill and intangible assets has a material negative impact on the reported equity position.

The consistent adjustments to both total assets and shareholders’ equity suggest a systematic approach to accounting for goodwill and intangible assets. The increasing difference in shareholders’ equity, particularly between 2021 and 2023, warrants further investigation into the nature and timing of these adjustments. The eventual move to positive reported equity in 2025, while notable, is offset by a continued substantial adjusted equity deficit.

Overall Impact

The adjustments significantly alter the financial picture presented by the company. While reported figures show improvement in equity during the later years, the adjusted figures reveal a continuing underlying deficit. This discrepancy highlights the importance of understanding the composition of assets and the impact of intangible assets on the overall financial health of the entity.

The financial metrics demonstrate a consistent pattern when goodwill is removed from the calculation. Generally, adjustments resulting from the exclusion of goodwill lead to slightly altered, but consistent, trends across the observed ratios. The period between 2021 and 2025 shows fluctuations in performance, with a notable improvement in the most recent year, 2025.

Total Asset Turnover

Reported total asset turnover exhibited variability, ranging from 0.45 in 2021 to 0.57 in 2023, followed by a decrease to 0.43 in 2024 and a recovery to 0.53 in 2025. The adjusted total asset turnover mirrored this trend, consistently showing slightly higher values than the reported figures. The adjusted ratio moved from 0.48 in 2021 to 0.60 in 2023, decreased to 0.45 in 2024, and increased to 0.59 in 2025. This suggests that goodwill does not significantly distort the efficiency with which assets are used to generate revenue.

Financial Leverage

Reported financial leverage is only available for 2025, registering at 30.85. Adjusted financial leverage figures are not present in the provided information, preventing a comparative analysis.

Return on Equity (ROE)

Similar to financial leverage, reported ROE is only available for 2025, at 40.98%. Adjusted ROE values are absent, hindering a comparative assessment of the impact of goodwill removal on equity returns.

Return on Assets (ROA)

Reported ROA was negative for the period 2021-2024, ranging from -7.56% to -3.03%. A positive ROA of 1.33% was reported in 2025. The adjusted ROA followed a similar pattern, consistently showing slightly more negative values than the reported figures from 2021 to 2024 (-3.22% to -7.97%). In 2025, the adjusted ROA was 1.48%, slightly higher than the reported value. The consistent difference between reported and adjusted ROA indicates that goodwill contributes to a higher, though still potentially negative, asset return.

In summary, the removal of goodwill generally results in a slight downward adjustment to ROA across the observed period. The trends in total asset turnover remain largely unaffected. The absence of adjusted financial leverage and ROE values for years prior to 2025 limits a comprehensive understanding of the impact of goodwill on these metrics.

An examination of the financial information reveals trends in both total assets and asset turnover ratios over a five-year period. Reported total assets experienced a slight decrease between 2021 and 2022, followed by relative stability through 2023, before increasing significantly in 2024 and 2025. Adjusted total assets mirrored this pattern, though the absolute values are consistently lower than reported total assets. The adjusted total asset turnover ratio demonstrates fluctuations throughout the period, with a general upward trend followed by a dip and subsequent recovery.

Reported Total Asset Turnover

The reported total asset turnover ratio increased from 0.45 in 2021 to 0.49 in 2022, and further to 0.57 in 2023, indicating improving efficiency in generating revenue from assets. However, this ratio decreased to 0.43 in 2024, suggesting a decline in asset utilization. A subsequent increase to 0.53 in 2025 partially recovered the lost ground, but did not reach the 2023 peak.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio exhibited a similar pattern to the reported ratio, beginning at 0.48 in 2021 and rising to 0.52 in 2022, then to 0.60 in 2023. A decrease to 0.45 was observed in 2024, followed by an increase to 0.59 in 2025. The adjusted ratio consistently presents a slightly higher value than the reported ratio each year, suggesting that excluding certain asset components results in a more favorable efficiency metric.

Asset Base Trends

Both reported and adjusted total assets remained relatively stable between 2021 and 2023. A substantial increase in both measures occurred between 2023 and 2024, continuing into 2025. This suggests significant investment in assets during those periods. The difference between reported and adjusted total assets remained consistent throughout the period, indicating a stable composition of the adjustments made to arrive at the adjusted figure.

Relationship between Turnover and Asset Base

The observed decline in asset turnover ratios in 2024, despite the increase in total assets, suggests that the revenue generated did not keep pace with the asset growth. The partial recovery in 2025 indicates some improvement in asset utilization, but further investigation would be needed to determine the underlying causes of these fluctuations and whether the asset base is optimally deployed.

An examination of the financial information reveals trends in total assets and shareholders’ equity, alongside calculated financial leverage metrics. Reported total assets experienced a slight decrease between 2021 and 2022, followed by relative stability in 2022 and 2023, before increasing significantly in 2024 and 2025. Adjusted total assets mirrored this pattern, though the absolute values are consistently lower than those reported. Shareholders’ equity, as reported, demonstrated a substantial improvement from a significant deficit in 2021 to a positive value in 2025. Conversely, adjusted shareholders’ equity remained in a deficit position throughout the observed period, though the magnitude of the deficit lessened over time.

Total Assets

Reported total assets decreased from US$138,552 million in 2021 to US$137,100 million in 2022, remaining relatively flat at US$137,012 million in 2023. A notable increase is then observed, reaching US$156,363 million in 2024 and further growing to US$168,235 million in 2025. Adjusted total assets followed a similar trajectory, starting at US$130,484 million in 2021 and reaching US$150,960 million in 2025, consistently lower than the reported figures.

Shareholders’ Equity

Reported shareholders’ equity began as a deficit of US$14,999 million in 2021 and deepened to a deficit of US$17,233 million in 2023. However, a significant turnaround occurred, with the deficit shrinking to US$3,908 million in 2024 and ultimately becoming a positive equity of US$5,454 million in 2025. In contrast, adjusted shareholders’ equity consistently represented a deficit, starting at US$23,067 million in 2021 and decreasing to US$11,821 million in 2025, indicating a slower rate of improvement when considering adjustments.

Financial Leverage

Reported financial leverage is only available for 2025, registering at 30.85. Adjusted financial leverage is not provided for any period. The difference between reported and adjusted equity suggests that the adjustments significantly impact the leverage calculation, potentially indicating the presence of substantial off-balance sheet items or conservative accounting practices affecting the reported equity position. The substantial increase in reported equity in 2024 and 2025 likely contributed to the reported leverage ratio of 30.85.

The divergence between reported and adjusted figures for both total assets and shareholders’ equity warrants further investigation. The adjustments consistently result in lower asset values and larger equity deficits, suggesting a potential impact from items such as goodwill, intangible assets, or other non-cash adjustments. The substantial improvement in reported shareholders’ equity in the later years, coupled with the lack of corresponding improvement in adjusted shareholders’ equity, highlights the importance of understanding the nature of these adjustments.

Shareholders’ equity exhibited significant volatility over the observed period. Reported shareholders’ equity began with a deficit of approximately US$15 billion in 2021, declining to a deficit of US$17.233 billion by 2023 before a substantial increase to a positive US$5.454 billion in 2025. Adjusted shareholders’ equity consistently remained in a deficit position throughout the period, starting at US$23.067 billion in 2021 and decreasing to US$11.821 billion in 2025.

Reported Return on Equity (ROE)

Reported ROE is unavailable for the years 2021 through 2024. A value of 40.98% is reported for 2025, coinciding with the shift to positive reported shareholders’ equity. This substantial increase suggests a significant improvement in profitability relative to the equity base in that year.

Adjusted Return on Equity (ROE)

Adjusted ROE values are not presented for any of the years. The absence of this metric hinders a comprehensive assessment of performance when considering the adjustments made to shareholders’ equity. Without these values, it is difficult to determine the impact of the adjustments on overall profitability.

The divergence between reported and adjusted shareholders’ equity, and consequently the lack of adjusted ROE figures, warrants further investigation. The substantial difference between the two equity measures suggests the presence of significant adjustments, potentially related to intangible assets or goodwill. The positive shift in reported equity in 2025, coupled with the reported ROE, indicates a potential turnaround in financial performance, but a complete understanding requires analysis of the adjustments and the corresponding adjusted ROE.

The period under review demonstrates fluctuating returns on assets, both reported and adjusted. Total asset values experienced a general upward trajectory, though with an initial decline. A comparison of reported and adjusted figures reveals a consistent, though minor, difference in calculated return.

Total Assets

Reported total assets decreased from US$138,552 million in 2021 to US$137,100 million in 2022, followed by a slight decrease to US$137,012 million in 2023. A significant increase is then observed, reaching US$156,363 million in 2024 and further growing to US$168,235 million in 2025. Adjusted total assets mirrored this pattern, exhibiting similar fluctuations and overall growth.

Reported Return on Assets (ROA)

Reported ROA began at -3.03% in 2021, declining to -3.60% in 2022. A modest improvement was seen in 2023, with ROA reaching -1.62%. However, this was followed by a substantial decrease to -7.56% in 2024. The final year of the period showed a positive shift, with reported ROA increasing to 1.33% in 2025.

Adjusted Return on Assets (ROA)

Adjusted ROA followed a similar trend to the reported ROA. It started at -3.22% in 2021, decreased to -3.82% in 2022, and improved to -1.72% in 2023. A significant decline occurred in 2024, reaching -7.97%. Finally, adjusted ROA rose to 1.48% in 2025. The adjusted ROA consistently presented a slightly more negative value than the reported ROA across all years.

The substantial decline in both reported and adjusted ROA in 2024, followed by recovery in 2025, warrants further investigation. The consistent difference between reported and adjusted ROA suggests the adjustments made to total assets have a minor, but consistent, impact on the calculated return. The overall trend indicates a period of initial underperformance followed by a return to profitability as measured by ROA.