Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Boeing Co. (NYSE:BA)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Boeing Co., adjustment to net earnings (loss) related to parent

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings (loss) related to parent (as reported) (636) 10,460  8,197  4,895  5,176 
Add: Unrealized gain (loss) on certain investments, net of tax (2)
Net earnings (loss) related to parent (adjusted) (635) 10,462  8,198  4,893  5,184 

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Boeing Co., adjusted profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin -0.83% 10.34% 8.78% 5.18% 5.39%
Adjusted net profit margin -0.83% 10.35% 8.78% 5.17% 5.39%
Return on Equity (ROE)
Reported ROE 3,085.55% 2,309.01% 599.14% 81.70%
Adjusted ROE 3,086.14% 2,309.30% 598.90% 81.83%
Return on Assets (ROA)
Reported ROA -0.48% 8.91% 8.88% 5.44% 5.48%
Adjusted ROA -0.48% 8.91% 8.88% 5.44% 5.49%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Boeing Co.’s adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Boeing Co.’s adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Boeing Co.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Boeing Co., Profitability Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) related to parent (636) 10,460  8,197  4,895  5,176 
Revenues 76,559  101,127  93,392  94,571  96,114 
Profitability Ratio
Net profit margin1 -0.83% 10.34% 8.78% 5.18% 5.39%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) related to parent (635) 10,462  8,198  4,893  5,184 
Revenues 76,559  101,127  93,392  94,571  96,114 
Profitability Ratio
Adjusted net profit margin2 -0.83% 10.35% 8.78% 5.17% 5.39%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

2019 Calculations

1 Net profit margin = 100 × Net earnings (loss) related to parent ÷ Revenues
= 100 × -636 ÷ 76,559 = -0.83%

2 Adjusted net profit margin = 100 × Adjusted net earnings (loss) related to parent ÷ Revenues
= 100 × -635 ÷ 76,559 = -0.83%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Boeing Co.’s adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) related to parent (636) 10,460  8,197  4,895  5,176 
Shareholders’ equity (8,617) 339  355  817  6,335 
Profitability Ratio
ROE1 3,085.55% 2,309.01% 599.14% 81.70%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) related to parent (635) 10,462  8,198  4,893  5,184 
Shareholders’ equity (8,617) 339  355  817  6,335 
Profitability Ratio
Adjusted ROE2 3,086.14% 2,309.30% 598.90% 81.83%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

2019 Calculations

1 ROE = 100 × Net earnings (loss) related to parent ÷ Shareholders’ equity
= 100 × -636 ÷ -8,617 =

2 Adjusted ROE = 100 × Adjusted net earnings (loss) related to parent ÷ Shareholders’ equity
= 100 × -635 ÷ -8,617 =

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Boeing Co.’s adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) related to parent (636) 10,460  8,197  4,895  5,176 
Total assets 133,625  117,359  92,333  89,997  94,408 
Profitability Ratio
ROA1 -0.48% 8.91% 8.88% 5.44% 5.48%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) related to parent (635) 10,462  8,198  4,893  5,184 
Total assets 133,625  117,359  92,333  89,997  94,408 
Profitability Ratio
Adjusted ROA2 -0.48% 8.91% 8.88% 5.44% 5.49%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

2019 Calculations

1 ROA = 100 × Net earnings (loss) related to parent ÷ Total assets
= 100 × -636 ÷ 133,625 = -0.48%

2 Adjusted ROA = 100 × Adjusted net earnings (loss) related to parent ÷ Total assets
= 100 × -635 ÷ 133,625 = -0.48%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Boeing Co.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.