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

Boeing Co. (NYSE:BA)

Analysis of Operating Leases

Advanced level


Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Boeing Co., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total undiscounted future operating lease payments 1,838  1,355  1,475  1,515 
Discount rate1 5.38% 5.73% 6.10% 6.13%
 
Total present value of future operating lease payments 1,399  1,039  1,107  1,155 

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).

1 Weighted-average interest rate for Boeing Co.’s debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 5.38%
2019 272  2019 272  258 
2020 232  2020 232  209 
2021 194  2021 194  166 
2022 165  2022 165  134 
2023 126  2023 126  97 
2024 and thereafter 849  2024 126  92 
2025 126  87 
2026 126  83 
2027 126  79 
2028 126  75 
2029 126  71 
2030 93  50 
Total: 1,838  1,838  1,399 

Based on: 10-K (filing date: 2019-02-08).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 5.73%
2018 216  2018 216  204 
2019 201  2019 201  180 
2020 157  2020 157  133 
2021 115  2021 115  92 
2022 96  2022 96  73 
2023 and thereafter 570  2023 96  69 
2024 96  65 
2025 96  61 
2026 96  58 
2027 96  55 
2028 90  49 
Total: 1,355  1,355  1,039 

Based on: 10-K (filing date: 2018-02-12).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 6.10%
2017 233  2017 233  220 
2018 210  2018 210  187 
2019 182  2019 182  152 
2020 135  2020 135  107 
2021 95  2021 95  71 
2022 and thereafter 620  2022 95  67 
2023 95  63 
2024 95  59 
2025 95  56 
2026 95  53 
2027 95  50 
2028 50  25 
Total: 1,475  1,475  1,107 

Based on: 10-K (filing date: 2017-02-08).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 6.13%
2016 240  2016 240  226 
2017 217  2017 217  193 
2018 182  2018 182  152 
2019 157  2019 157  124 
2020 117  2020 117  87 
2021 and thereafter 602  2021 117  82 
2022 117  77 
2023 117  73 
2024 117  68 
2025 117  65 
2026 17 
Total: 1,515  1,515  1,155 

Based on: 10-K (filing date: 2016-02-10).


Adjustments to Financial Statements for Operating Leases

Boeing Co., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 133,625  117,359  92,333  89,997  94,408 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  1,399  1,039  1,107  1,155 
Total assets (adjusted) 133,625  118,758  93,372  91,104  95,563 
Adjustment to Total Debt
Total debt (as reported) 27,302  13,847  11,117  9,952  9,964 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  1,399  1,039  1,107  1,155 
Add: Current portion of lease liabilities 252  —  —  —  — 
Add: Non-current portion of lease liabilities 978  —  —  —  — 
Total debt (adjusted) 28,532  15,246  12,156  11,059  11,119 

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).

1, 2 Equal to total present value of future operating lease payments.


Boeing Co., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Boeing Co., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total Asset Turnover1
Reported total asset turnover 0.57 0.86 1.01 1.05 1.02
Adjusted total asset turnover 0.57 0.85 1.00 1.04 1.01
Debt to Equity2
Reported debt to equity 40.85 31.32 12.18 1.57
Adjusted debt to equity 44.97 34.24 13.54 1.76
Return on Assets3 (ROA)
Reported ROA -0.48% 8.91% 8.88% 5.44% 5.48%
Adjusted ROA -0.48% 8.81% 8.78% 5.37% 5.42%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Boeing Co.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Boeing Co.’s adjusted debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Boeing Co.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Boeing Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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)
Revenues 76,559  101,127  93,392  94,571  96,114 
Total assets 133,625  117,359  92,333  89,997  94,408 
Activity Ratio
Total asset turnover1 0.57 0.86 1.01 1.05 1.02
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 76,559  101,127  93,392  94,571  96,114 
Adjusted total assets 133,625  118,758  93,372  91,104  95,563 
Activity Ratio
Adjusted total asset turnover2 0.57 0.85 1.00 1.04 1.01

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 Total asset turnover = Revenues ÷ Total assets
= 76,559 ÷ 133,625 = 0.57

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 76,559 ÷ 133,625 = 0.57

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Boeing Co.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

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)
Total debt 27,302  13,847  11,117  9,952  9,964 
Shareholders’ equity (8,617) 339  355  817  6,335 
Solvency Ratio
Debt to equity1 40.85 31.32 12.18 1.57
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 28,532  15,246  12,156  11,059  11,119 
Shareholders’ equity (8,617) 339  355  817  6,335 
Solvency Ratio
Adjusted debt to equity2 44.97 34.24 13.54 1.76

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 Debt to equity = Total debt ÷ Shareholders’ equity
= 27,302 ÷ -8,617 =

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 28,532 ÷ -8,617 =

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Boeing Co.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

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 for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings (loss) related to parent (636) 10,460  8,197  4,895  5,176 
Adjusted total assets 133,625  118,758  93,372  91,104  95,563 
Profitability Ratio
Adjusted ROA2 -0.48% 8.81% 8.78% 5.37% 5.42%

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

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