Boeing Co. (NYSE:BA)

Net Operating Profit After Taxes (NOPAT)

There is considerable volatility in NOPAT over the observed period. Initially, the company experienced a significant operating loss of -8,306 million USD in 2020. In the following years, the losses improved markedly in 2021 and 2022, reaching -2,649 million USD and -2,910 million USD respectively, indicating a partial recovery. The loss further narrowed significantly to -77 million USD in 2023, suggesting near breakeven performance during that year. However, in 2024, NOPAT deteriorated sharply to -10,234 million USD, the worst in the reported period, indicating a substantial negative impact on profitability.

Invested Capital

Invested capital shows relative stability with moderate fluctuations. Starting at 47,630 million USD in 2020, it increased gradually to 49,413 million USD in 2021 and further to 50,833 million USD in 2022. In 2023, invested capital declined to 44,883 million USD, reflecting a decrease in capital investment or asset base. It rebounded to 50,250 million USD in 2024, suggesting renewed investment or capital allocation towards the end of the period.

Return on Invested Capital (ROIC)

ROIC remained negative throughout the entire period, indicating persistent challenges in generating profitable returns from the invested capital. Initially, ROIC was sharply negative at -17.44% in 2020, followed by a significant improvement to -5.36% in 2021 and a relatively stable -5.73% in 2022. The ratio approached near zero in 2023 at -0.17%, suggesting a temporary stabilization and improved operational efficiency. Nonetheless, ROIC deteriorated drastically to -20.37% in 2024, reaching its lowest point over the five years, signaling a severe reduction in capital effectiveness and operational profitability.

Summary

The company demonstrates substantial volatility in operating profitability and returns on invested capital over the analyzed timeframe. While there are signs of operational recovery and capital efficiency improvement between 2020 and 2023, the sharp downturn in 2024 across both NOPAT and ROIC raises concerns. Invested capital levels fluctuate moderately but do not follow a consistent upward or downward trend, indicating variable capital deployment strategies. Overall, the data suggests periods of financial stress interspersed with attempts at recovery, culminating in a significant setback in the most recent year.

The analysis of the annual financial indicators reveals several notable trends and fluctuations over the five-year period from 2020 to 2024.

Operating Profit Margin (OPM)

The operating profit margin exhibits significant volatility throughout the period. Starting at a steep negative margin of -20.02% in 2020, it improves substantially to -3.17% in 2021, followed by a slight further decline to -3.49% in 2022. In 2023, there is a positive margin recorded at 0.85%, indicating a temporary recovery in operational profitability. However, this is reversed dramatically in 2024, with the margin deteriorating back to a negative -14.62%, suggesting renewed operational challenges or increased expenses negatively affecting profitability.

Turnover of Capital (TO)

The turnover of capital demonstrates an overall upward trend with some fluctuations. Commencing at 1.22 in 2020, the ratio shows gradual improvements to 1.26 in 2021 and 1.31 in 2022. A notable increase occurs in 2023, reaching 1.73, indicating more efficient use of capital in generating sales during that year. Nevertheless, in 2024, the turnover declines to 1.32, which still remains above the initial values but reflects a reduction in capital utilization effectiveness compared to the previous year.

1 – Effective Cash Tax Rate (CTR)

This metric remains generally constant at 100% for four of the five years (2020, 2021, 2022, and 2024), implying that the cash tax impact effectively equals the underlying tax expense during those years. An anomaly appears in 2023 with a significantly negative value of -11.76%, which could indicate the presence of tax credits, deferred tax assets, or other tax-related adjustments impacting cash flow in that specific year.

Return on Invested Capital (ROIC)

Return on invested capital is consistently negative throughout the period, indicating that the company has been generating returns below its cost of capital. The ROIC starts at a deeply negative -17.44% in 2020, improves to -5.36% in 2021 and slightly worsens to -5.73% in 2022. In 2023, it almost reaches breakeven at -0.17%, but in 2024, ROIC sharply declines again to -20.37%, signaling considerable inefficiencies in generating returns on capital invested in that year.

The financial data reveals notable fluctuations in profitability and revenues over the five-year period analyzed. The net operating profit before taxes (NOPBT) exhibited a negative trend overall, punctuated by an exceptional positive value in the year ending December 31, 2023.

Net Operating Profit Before Taxes (NOPBT)

The NOPBT started at a significant loss of -11,643 million US dollars in 2020, improving substantially to -1,973 million in 2021. However, it experienced a slight deterioration to -2,323 million in 2022. A turnaround occurred in 2023, with NOPBT reaching a positive 658 million US dollars, indicating a brief period of profitability. This improvement was not sustained, as NOPBT reverted to a substantial loss of -9,725 million in 2024.

Revenues

Revenues showed a generally increasing trend from 58,158 million US dollars in 2020 to a peak of 77,794 million in 2023, indicating growth in sales or service volumes. However, in 2024 revenues declined to 66,517 million, a level still above the initial 2020 figure but well below the peak observed in 2023.

Operating Profit Margin (OPM)

The operating profit margin, reflecting operating profitability relative to revenues, was negative in the first four years, ranging from -20.02% in 2020 to just -3.17% in 2021 and -3.49% in 2022, showing some margin improvement over this period. In 2023, the margin turned slightly positive at 0.85%, in line with the positive NOPBT. However, the margin sharply declined again to -14.62% in 2024, indicating deteriorated operating efficiency or increased costs relative to revenues.

Overall, the data suggests that while revenues generally increased, profitability remained volatile, with substantial losses dominating most years except for the brief positive turnaround in 2023. The temporary profitability aligns with a peak in revenues and improved operating margin, yet the subsequent year shows a marked decline, signaling ongoing challenges in sustaining operating profitability. These patterns indicate periods of operational difficulty, with spikes of recovery that were not maintained, highlighting potential areas for efficiency improvement or cost control to stabilize profits.

Over the observed period, revenues displayed a generally upward trend from 2020 through 2023, increasing from 58,158 million US dollars in 2020 to a peak of 77,794 million US dollars in 2023. However, in 2024, revenues declined to 66,517 million US dollars, falling below the prior year's peak but remaining above the figures recorded in 2020 through 2022.

Invested capital showed relatively moderate fluctuations throughout the period. It increased slightly from 47,630 million US dollars in 2020 to 50,833 million in 2022. A notable decrease occurred in 2023, with invested capital dropping to 44,883 million US dollars, before rising again to 50,250 million US dollars in 2024. This pattern suggests some level of asset base adjustment or reallocation of investment during the period.

The turnover of capital ratio, reflecting how efficiently invested capital is utilized to generate revenues, demonstrated an overall improving trend. Starting at 1.22 in 2020, the ratio gradually increased to 1.31 by 2022. A significant jump to 1.73 occurred in 2023, indicating much higher efficiency in capital use that year. However, in 2024, the ratio receded to 1.32, aligning closer to earlier years but still higher than the 2020 baseline.

In summary, the data reveals increasing revenues and improving capital turnover efficiency through 2023, paired with fluctuations in invested capital. The peak efficiency and revenue figures in 2023 suggest a particularly strong operational year. The subsequent decline in revenues and turnover ratio in 2024, alongside a rebound in invested capital, could indicate a change in business conditions or strategic shifts impacting financial performance and capital utilization.

The financial data reveals notable fluctuations and inconsistencies across the examined periods.

Cash Operating Taxes

The cash operating taxes demonstrated significant volatility. In 2020, there was a substantial negative outflow of -3,337 million USD, indicating a probable tax credit or refund situation. This shifted to positive cash tax payments starting in 2021 through 2024, with values ranging from 508 million USD to 736 million USD. This change suggests a recovery or normalization of taxable income or tax payments after 2020.

Net Operating Profit Before Taxes (NOPBT)

This metric showed considerable instability and mostly negative results. The NOPBT was deeply negative from 2020 to 2022, with values of -11,643 million USD, -1,973 million USD, and -2,323 million USD respectively. There was a brief positive turn in 2023, rising to 658 million USD, indicating an operating profit before tax. However, this improvement was not sustained, as 2024 reverted to a significant loss of -9,725 million USD. This pattern indicates challenges in maintaining profitable operations across the period, with only a short-lived positive result.

Effective Cash Tax Rate (CTR)

The effective cash tax rate data is largely incomplete, except for 2023, where it is recorded at 111.76%. This extraordinarily high tax rate might indicate unusual tax charges relative to the income, potentially caused by one-time items, tax adjustments, or accounting anomalies during that year.

Overall, the company faced persistent operating losses before taxes for most of the period, except in 2023, alongside a significant recovery in positive cash tax payments after initially negative cash operating taxes. The spike in the effective cash tax rate in 2023 suggests an atypical tax situation that warrants further detailed analysis. The trends suggest operational and financial challenges, with inconsistent profitability and tax impacts influencing cash flows.