Boeing Co. (NYSE:BA)

The analysis reveals a significant shift in financial performance over the observed period, particularly concerning profitability and leverage. Return on Assets (ROA) consistently exhibited negative values from March 31, 2022, through December 31, 2025, although the magnitude of the losses diminished over time. A notable change occurs in the final period, with ROA turning positive at 1.33% by December 31, 2025.

Return on Assets (ROA)

ROA began at -3.60% in March 2022 and reached its lowest point of -7.56% in December 2024. The period from March 2022 to December 2024 demonstrates a generally worsening trend in asset utilization efficiency. However, a substantial improvement is evident in the final period, with ROA increasing to 1.33% by December 2025, suggesting improved profitability relative to asset base.

Financial Leverage

Financial leverage information is absent for the majority of the observed period, becoming available only for December 31, 2025, at a ratio of 30.85. This indicates a substantial reliance on debt financing. The absence of prior leverage figures makes it difficult to assess trends in capital structure, but the final value suggests a highly leveraged position.

Return on Equity (ROE)

ROE is only reported for December 31, 2025, at 40.98%. Given the negative ROA values throughout most of the period, the positive ROE is almost entirely attributable to the high level of financial leverage. The substantial difference between ROE and ROA highlights the significant impact of debt financing on shareholder returns.

The late-period improvement in ROA, coupled with the high financial leverage, resulted in a substantial ROE. The absence of earlier ROE and leverage figures limits a comprehensive understanding of the relationship between these metrics over time. However, the final period suggests a strategy of utilizing debt to amplify returns on a relatively small asset base.

The analysis of the presented financial metrics reveals a complex trajectory in performance over the observed period. Initially, the metrics demonstrate volatility, followed by a period of stabilization and eventual improvement. The most significant shift occurs in the final reported period, indicating a substantial change in the company’s profitability.

Net Profit Margin

The Net Profit Margin exhibits considerable fluctuation. Beginning with negative values ranging from -8.00% to -13.75% in the first four periods, it gradually improves to -2.86% by December 31, 2022. This trend continues with values of -2.81% and -4.68% in the subsequent periods, before experiencing a sharp decline to -17.77% in December 2024. However, a dramatic turnaround is observed in the final period, with the margin reaching a positive 2.50% by December 31, 2025. This suggests a significant improvement in cost management or revenue generation towards the end of the analyzed timeframe.

Asset Turnover

Asset Turnover demonstrates a generally increasing trend. Starting at 0.45 for the first three periods, it rises to 0.49 by December 31, 2022, and continues to climb to 0.56 by September 30, 2023. While it experiences a slight decrease to 0.52 in March 2024, it recovers to 0.54 by September 2025, before settling at 0.53 in the final period. This indicates increasing efficiency in utilizing assets to generate revenue, although the rate of increase slows in later periods.

Financial Leverage

Financial Leverage is not reported for the majority of the observed period, becoming available only in the final period, registering a value of 30.85. This indicates a substantial reliance on debt financing. The impact of this leverage on overall performance is evident when considered in conjunction with the Return on Equity.

Return on Equity (ROE)

Return on Equity is only reported for the final period, showing a value of 40.98%. This high ROE, coupled with the reported Financial Leverage of 30.85, suggests that the company is effectively utilizing debt to amplify returns to shareholders. The substantial improvement in Net Profit Margin in the final period is a key driver of this elevated ROE.

In summary, the company experienced a period of negative profitability followed by gradual improvement in operational efficiency, as indicated by the Asset Turnover ratio. The significant increase in Return on Equity in the final period is largely attributable to the positive shift in Net Profit Margin and the substantial level of Financial Leverage employed. Further investigation into the factors driving the dramatic change in profitability in the final period is warranted.

The five-component DuPont analysis reveals a significant shift in the company’s Return on Equity (ROE) over the observed period. While earlier periods lack complete information, a clear trend emerges towards the end of the series, culminating in a substantial ROE of 40.98% by December 31, 2025. This increase is driven by a combination of factors related to profitability, asset utilization, and financial leverage.

Profitability (EBIT Margin)

The EBIT Margin demonstrates considerable volatility. Initially negative, ranging from -5.50% to -10.42% through September 2022, it improved to 0.61% by December 2022. However, it experienced another decline, reaching -14.24% by December 2023, before a dramatic recovery to 6.04% by December 2025. This suggests significant operational improvements or favorable market conditions in the latter period.

Asset Turnover

Asset Turnover exhibits a generally increasing trend, starting at 0.45 in the first three quarters of 2022 and rising to 0.57 by December 2022. It fluctuates between 0.52 and 0.56 in 2023, then declines to 0.43 by December 2023, before recovering to 0.53 by December 2025. This indicates a moderate improvement in the efficiency with which assets are used to generate sales, although the recent decline and subsequent recovery warrant further investigation.

Financial Leverage

Financial Leverage shows a substantial increase, reaching 30.85 by December 2025. This indicates a significant reliance on debt financing. The increase in leverage amplifies the impact of both positive and negative changes in profitability on ROE.

Tax Burden & Interest Burden

The Interest Burden is initially negative, becoming positive in the latter periods, reaching 0.49 by December 2025. This suggests a shift from net interest expense to net interest income. The Tax Burden is reported as 0.85 by December 2025, indicating that 85% of pre-tax profits are retained after tax payments. These burdens, while present, do not appear to be primary drivers of the observed ROE changes.

The substantial increase in ROE by December 2025 is primarily attributable to the combined effect of a significantly improved EBIT Margin and increased Financial Leverage. The Asset Turnover contributes to a lesser extent, showing moderate improvement. The shift in Interest Burden from negative to positive also plays a role, albeit smaller, in the overall ROE increase. The company’s increasing reliance on debt, as evidenced by the rising Financial Leverage, amplifies the impact of the improved profitability on shareholder returns.

The financial performance, as indicated by the two-component disaggregation of Return on Assets (ROA), reveals a period of significant volatility followed by a notable shift towards profitability. Initially, the period from March 31, 2022, through December 31, 2022, demonstrates negative ROA values, driven by negative Net Profit Margins. Subsequently, a gradual improvement is observed, culminating in a positive ROA by December 31, 2025.

Net Profit Margin

The Net Profit Margin exhibits substantial fluctuations. From March 31, 2022, to December 31, 2022, it remains negative, ranging from -8.00% to -13.75%. A slight improvement is seen through September 30, 2023, but a further decline occurs by December 31, 2024, reaching -17.77%. A significant positive turnaround is then observed, with the margin reaching 2.50% by December 31, 2025. This suggests a substantial improvement in profitability towards the end of the analyzed period.

Asset Turnover

Asset Turnover demonstrates a generally increasing trend from 0.45 in the first three quarters of 2022 to a peak of 0.57 in the last quarter of 2022. It remains relatively stable between 0.52 and 0.56 through the first three quarters of 2023. A decline is then observed in 2024, falling to 0.43 by December 31, 2024, before recovering to 0.53 by December 31, 2025. This indicates fluctuations in the efficiency with which assets are used to generate sales.

Return on Assets (ROA)

ROA mirrors the trends in Net Profit Margin, initially negative and fluctuating between -3.60% and -6.14% in 2022. Gradual improvement is observed through September 30, 2023, but a decline occurs in 2024, reaching -7.56% by December 31, 2024. The most significant change is the positive ROA of 1.33% recorded by December 31, 2025, driven by the substantial improvement in Net Profit Margin and a relatively stable Asset Turnover.

The interplay between Net Profit Margin and Asset Turnover significantly influences ROA. While Asset Turnover demonstrates relative stability with some fluctuations, the substantial changes in Net Profit Margin are the primary driver of the observed shifts in ROA. The positive ROA achieved by December 31, 2025, indicates a successful turnaround in profitability, despite some volatility in asset utilization.

The financial performance, as indicated by the four-component DuPont analysis, reveals a period of significant volatility followed by improvement. Initially, the metrics demonstrate weakness, but a clear positive shift emerges towards the end of the observed period. The analysis focuses on trends in Tax Burden, Interest Burden, EBIT Margin, Asset Turnover, and their combined effect on Return on Assets (ROA).

Tax Burden

The Tax Burden is not reported for most of the period, becoming available in the final four quarters. It begins at 0.85 and decreases to 0.49, suggesting a declining effective tax rate. This change could be due to various factors, including changes in tax laws, jurisdictional mix of earnings, or utilization of tax credits.

Interest Burden

The Interest Burden fluctuates considerably. Negative values are observed, starting in December 2022 at -4.19 and improving to -3.64 by March 2023. This indicates that income from interest-bearing activities exceeded interest expense during those periods. The burden then shifts to positive values, reaching 0.49 in December 2025, suggesting a decrease in net interest income or an increase in interest expense relative to income.

EBIT Margin

The EBIT Margin exhibits substantial volatility. It begins with negative values, ranging from -5.50 to -10.42 in the first half of the period. A gradual improvement is observed, peaking at 0.61 in September 2023, before declining again to -14.24 in December 2024. However, a strong recovery is evident in the final quarter, reaching 6.04 in December 2025. This suggests significant operational challenges initially, followed by periods of improvement and subsequent setbacks, culminating in a substantial increase in profitability.

Asset Turnover

Asset Turnover demonstrates a generally increasing trend, starting at 0.45 and rising to 0.56 by September 2023. It then experiences a slight decline to 0.43 in December 2024, followed by a recovery to 0.54 in September 2025 and a slight decrease to 0.53 in December 2025. This indicates improving efficiency in utilizing assets to generate revenue, although the most recent periods show some moderation in this improvement.

Return on Assets (ROA)

ROA mirrors the trends observed in the EBIT Margin, initially displaying negative values ranging from -3.60 to -6.14. It gradually improves, reaching -1.62 in September 2023, but then declines to -7.56 in December 2024. A significant turnaround is observed in the final quarter, with ROA reaching 1.33 in December 2025. This indicates a substantial improvement in the overall profitability of assets, driven primarily by the recovery in the EBIT Margin and supported by the relatively stable Asset Turnover.

In summary, the period under review was characterized by initial underperformance, followed by a period of fluctuating results, and ultimately a strong recovery in profitability as evidenced by the ROA. The improvement in ROA is largely attributable to the significant increase in the EBIT Margin in the final quarter, coupled with a relatively consistent Asset Turnover. The changes in Tax and Interest Burdens also contribute to the overall trend, though their impact appears less pronounced than that of the EBIT Margin.

The period under review demonstrates significant fluctuations in profitability metrics. A notable trend is the improvement in net profit margin from negative values throughout 2022 and much of 2023 to a positive value by the end of 2025. However, this improvement is not consistent and is preceded by periods of increased negative performance.

Tax Burden

The tax burden is only available for the final period, registering at 0.85. Without historical context, it is difficult to assess the impact of taxation on overall profitability.

Interest Burden

The interest burden exhibits a negative value in late 2022 and early 2023, peaking at -4.19 before becoming positive at 0.49 in the final period. This suggests a shift in financial leverage or interest income, potentially indicating debt reduction or increased investment income. The negative values imply that interest income exceeded interest expense during those periods.

EBIT Margin

The EBIT margin generally follows a similar pattern to the net profit margin, moving from negative values to positive. The most substantial negative EBIT margin occurred in the third quarter of 2022 at -10.42%. A positive trend is observed in late 2022 and early 2023, peaking at 0.67% in the first quarter of 2023, before declining again through the third quarter of 2024. The final period shows a substantial increase to 6.04%, indicating improved operational profitability. The volatility suggests sensitivity to external factors or internal operational changes.

Net Profit Margin

The net profit margin experienced a consistent decline through the first three quarters of 2022, reaching a low of -13.75%. While remaining negative through much of 2023, the margin shows some stabilization before a significant improvement in the final period, culminating in a positive margin of 2.50% by the end of 2025. The largest negative margin occurred in the fourth quarter of 2024 at -17.77%. The overall trend indicates a recovery in net profitability, but with considerable short-term volatility. The difference between the EBIT margin and the net profit margin suggests that factors such as interest and taxes significantly impact the bottom line.

The disaggregation reveals that improvements in the EBIT margin do not directly translate into equivalent improvements in the net profit margin, suggesting that non-operating factors, such as interest expense and taxes, play a crucial role in determining overall profitability. The substantial shift from negative to positive net profit margin in the final period warrants further investigation to understand the underlying drivers.