Boeing Co. (NYSE:BA)

Analysis of the financial data reveals the following insights regarding return on assets (ROA) over the observed periods.

Return on Assets (ROA)

The ROA figures show a fluctuating and generally negative performance throughout the five-year period. In 2020, the ROA was -7.8%, indicating a significant negative return on the assets employed by the company. This loss metric improved noticeably in 2021 to -3.03%, suggesting better asset utilization and possibly cost management or revenue enhancements.

However, in 2022, the ROA slightly worsened to -3.6%, marking a minor setback after the previous year's improvement. The year 2023 saw an improvement again to -1.62%, the best ROA level during the observed period, suggesting a more efficient return on asset base, though still negative.

In 2024, the ROA deteriorated sharply to -7.56%, nearly mirroring the poor performance seen in 2020. This indicates a significant decline in operational efficiency or asset productivity compared to the preceding years.

The overall trend of the ROA indicates considerable volatility with intermittent improvements but consistently negative returns, pointing to ongoing challenges in generating positive earnings relative to the asset base.

Financial leverage and return on equity (ROE) data are not available, limiting further assessment of how the company is managing its equity and debt structure and the overall profitability from shareholder perspective.

Net Profit Margin

The net profit margin exhibited considerable volatility over the five-year period. Initially, in 2020, the margin was significantly negative at -20.42%. This figure improved substantially in 2021 to -6.75%, suggesting a reduction in losses or better cost management. In 2022, the margin slightly declined again to -7.41%, indicating some challenges in maintaining profitability. By 2023, the margin improved further to -2.86%, approaching break-even territory. However, in 2024, the margin deteriorated sharply back to -17.77%, signaling a renewed decline in profitability or increased expenses impacting the bottom line.

Asset Turnover

Asset turnover showed an overall improving trend from 2020 through 2023. Starting at 0.38 in 2020, the ratio increased steadily each year, reaching 0.57 in 2023. This upward trend indicates enhanced efficiency in utilizing assets to generate revenue over this period. Nevertheless, in 2024, asset turnover declined to 0.43, suggesting a decrease in operational efficiency or changes in asset base or revenue generation capability.

Financial Leverage and Return on Equity (ROE)

No data were provided for financial leverage or return on equity during the period under review, rendering an analysis of these metrics unavailable.

EBIT Margin

The EBIT margin shows a fluctuating trend over the five-year period. It started at a significantly negative level of -21.07% in 2020, indicating substantial operating losses. The margin improved considerably in the following years, reaching -3.63% in 2021 and -3.56% in 2022, approaching break-even. In 2023, the EBIT margin turned positive to 0.61%, reflecting operational profitability. However, this improvement was not sustained, as the margin declined sharply to -14.24% in 2024, indicating a return to considerable operating losses.

Asset Turnover

Asset turnover exhibited a generally positive trend from 2020 to 2023. The ratio increased steadily from 0.38 in 2020 to 0.45 in 2021, 0.49 in 2022, and peaked at 0.57 in 2023. This suggests an improvement in the efficiency with which assets were used to generate revenue during this period. However, the ratio declined to 0.43 in 2024, indicating a decrease in asset utilization efficiency in that year compared to the previous peak.

Interest Burden

Interest burden information is largely missing, with data only available for 2023 where it records a notably negative value of -4.19. A negative interest burden ratio implies that interest expense exceeded earnings before interest and taxes in that year, signaling financial stress or high leverage impact during that period.

Tax Burden, Financial Leverage, and Return on Equity (ROE)

Data for tax burden, financial leverage, and return on equity are not available for analysis. This absence limits insight into the company's tax impact, capital structure, and overall profitability from an equity perspective during the reported periods.

Overall Observations

The firm experienced significant volatility in operational profitability from 2020 through 2024, as reflected in the EBIT margin. Improvements in operational efficiency and asset utilization were noted through 2023 but deteriorated in 2024. The isolated negative interest burden in 2023 suggests financial challenges during that year. The lack of comprehensive data on tax burden, financial leverage, and ROE restricts a full assessment of capital management and shareholder returns.

Net Profit Margin Trends

The net profit margin showed a marked negative trend across the five-year period. Starting at -20.42% in 2020, the margin improved significantly in 2021 to -6.75% and remained relatively stable with a slight decline in 2022 to -7.41%. A further improvement was observed in 2023, reaching -2.86%, indicating a reduction in losses. However, in 2024, the margin deteriorated again to -17.77%, suggesting renewed challenges in profitability.

Asset Turnover Trends

The asset turnover ratio demonstrated a positive trend from 2020 through 2023. Beginning at 0.38 in 2020, the ratio steadily increased each year to 0.45 in 2021, 0.49 in 2022, and peaked at 0.57 in 2023. This progression indicates improved efficiency in utilizing assets to generate sales. In 2024, the asset turnover ratio declined to 0.43, indicating a reduction in asset utilization efficiency compared to the previous year.

Return on Assets (ROA) Trends

The return on assets followed a pattern similar to the net profit margin, remaining negative throughout the period. Starting at -7.8% in 2020, ROA improved notably in 2021 to -3.03%, and slightly declined to -3.6% in 2022. In 2023, the ROA reached its least negative point at -1.62%, reflecting better overall asset profitability. Nevertheless, there was a significant decline in 2024, with ROA dropping back to -7.56%, indicating decreased returns on assets.

Overall Observations

Over the analyzed period, the data reveals improving operational efficiency in terms of asset usage until 2023, as evidenced by the rising asset turnover and improving ROA. Profitability metrics, though consistently negative, showed signs of recovery between 2020 and 2023. However, the year 2024 saw a reversal in these positive trends with deteriorated net profit margin and ROA alongside a decline in asset turnover ratio, highlighting emerging operational or market challenges impacting overall financial performance.

Tax Burden

No data is available for analysis for all periods.

Interest Burden

Interest Burden is reported only for the year ending December 31, 2023, with a value of -4.19. This negative value indicates a significant interest expense impact during that period, but due to lack of comparative data, no trend analysis is possible.

EBIT Margin

The EBIT Margin shows substantial fluctuations over the five-year period. It started at a heavily negative -21.07% in 2020 and improved significantly to -3.63% in 2021. The margin remained relatively stable in 2022 at -3.56%, then showed a slight positive turn to 0.61% in 2023. However, this positive trend reversed sharply in 2024 to -14.24%, indicating renewed operational challenges or cost pressures impacting earnings before interest and taxes.

Asset Turnover

Asset Turnover exhibits an overall increasing trend from 0.38 in 2020 to a peak of 0.57 in 2023, indicating improved efficiency in generating sales from assets. In 2024, however, this ratio decreased to 0.43, suggesting a decline in asset utilization efficiency in the most recent period.

Return on Assets (ROA)

ROA remains negative across all reported years, highlighting that the company has struggled to generate profit relative to its asset base. The value improved from -7.8% in 2020 to -1.62% in 2023, reflecting a gradual reduction in losses. Nonetheless, in 2024, ROA deteriorated again to -7.56%, mirroring the downturn seen in EBIT margin and asset turnover, which suggests overall operational and profitability difficulties in that year.

The financial data over the five-year period reveals fluctuations and some concerning trends in profitability and interest management.

EBIT Margin

The EBIT margin shows a negative trend initially with a value of -21.07% in 2020, improving significantly by 2023 to a positive 0.61%. However, in 2024, it declined markedly to -14.24%, indicating a reversal in operating earnings performance after a brief recovery phase.

Net Profit Margin

Net profit margin remains negative throughout all years, signaling continued overall unprofitability. Despite some improvement from -20.42% in 2020 to -2.86% in 2023, the margin deteriorates again in 2024 to -17.77%, pointing to challenges in controlling costs or enhancing revenue sufficiently to generate net profits.

Interest Burden

Interest burden data is mostly unavailable except for 2023, where it shows a highly negative value of -4.19. This outlier suggests an unusually high interest expense relative to earnings before interest and taxes during that year, potentially impacting profitability adversely.

Tax Burden

There is no available data to analyze trends in tax burden over the period.

Overall, the patterns indicate that after some operating improvement, the company faced renewed profitability pressures in the latest year. The significant negative interest burden reported in 2023 may have contributed to this deterioration. Continued negative net margins suggest underlying operational or financial challenges that require attention.