Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Boeing Co., solvency ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The solvency position exhibits fluctuating trends over the observed period. Several ratios indicate a period of stress followed by improvement, though significant leverage remains a characteristic of the financial structure. A clear pattern emerges showing improvement in most metrics from 2022 to 2025, but earlier years reveal challenges in meeting obligations.
- Debt Levels Relative to Equity and Capital
- Debt to equity and debt to capital ratios show an initial increase from 2021 to 2023, peaking at 1.49 and 1.47 respectively, before declining significantly in 2024 and 2025 to 0.91 for both metrics (including operating lease liability). The inclusion of operating lease liabilities results in slightly higher ratios, but the trend remains consistent. This suggests a reduction in reliance on debt financing relative to equity and total capital in the later years of the period.
- Debt as a Percentage of Assets
- Debt to assets ratios, both with and without operating lease liabilities, demonstrate a consistent downward trend from 0.42/0.43 in 2021 and 2022 to 0.32/0.34 in 2025. This indicates a decreasing proportion of assets financed by debt, contributing to a stronger asset base relative to liabilities.
- Leverage
- Financial leverage, reported only for 2025, is substantial at 30.85. This signifies a high degree of financial risk, as a relatively small change in operating income can result in a large change in equity.
- Coverage Ratios
- Interest coverage and fixed charge coverage ratios initially indicate an inability to comfortably cover obligations. Both ratios are negative in 2021 and 2022, and interest coverage remains negative in 2024. However, both ratios turn positive in 2023 and 2025, reaching 1.95 and 1.58 respectively. This improvement suggests enhanced profitability and cash flow generation, enabling better coverage of interest and fixed charges. The negative values in earlier periods are a significant concern, indicating periods where operating income was insufficient to cover these expenses.
Overall, the solvency position appears to have improved from a challenging state in the earlier years to a more stable position by 2025. However, the high level of financial leverage remains a key consideration, and continued monitoring of coverage ratios is crucial.
Debt Ratios
Coverage Ratios
Debt to Equity
Boeing Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | 8,461) | 1,278) | 5,204) | 5,190) | 1,296) | |
| Long-term debt, excluding current portion | 45,637) | 52,586) | 47,103) | 51,811) | 56,806) | |
| Total debt | 54,098) | 53,864) | 52,307) | 57,001) | 58,102) | |
| Shareholders’ equity (deficit) | 5,454) | (3,908) | (17,233) | (15,883) | (14,999) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 9.92 | — | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Caterpillar Inc. | — | 1.97 | 1.94 | 2.33 | 2.29 | |
| Eaton Corp. plc | — | 0.50 | 0.49 | 0.51 | 0.52 | |
| GE Aerospace | 1.10 | 1.00 | 0.77 | 0.89 | 0.87 | |
| Honeywell International Inc. | — | 1.67 | 1.29 | 1.17 | 1.06 | |
| Lockheed Martin Corp. | 3.23 | 3.20 | 2.55 | 1.68 | 1.07 | |
| RTX Corp. | — | 0.69 | 0.73 | 0.44 | 0.43 | |
| Debt to Equity, Sector | ||||||
| Capital Goods | — | 1.54 | 1.54 | 1.33 | 1.26 | |
| Debt to Equity, Industry | ||||||
| Industrials | — | 1.39 | 1.52 | 1.42 | 1.37 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 54,098 ÷ 5,454 = 9.92
2 Click competitor name to see calculations.
An examination of the provided financial information reveals notable shifts in the company’s solvency position between 2021 and 2025. Total debt decreased from $58.102 billion in 2021 to $54.098 billion in 2025, exhibiting a generally declining trend with some fluctuation. Simultaneously, shareholders’ equity transitioned from a deficit of $14.999 billion in 2021 to a positive value of $5.454 billion in 2025. This substantial change in equity is a key driver of the observed solvency ratio trends.
- Debt to Equity Ratio
- The debt to equity ratio is only explicitly reported for 2025, registering at 9.92. Prior to 2025, the ratio is not available. However, given the negative shareholders’ equity from 2021 to 2023, calculating a meaningful debt-to-equity ratio for those years would be problematic and potentially misleading. The move to positive equity in 2024 and 2025 allows for a valid ratio calculation. The 2025 ratio indicates that for every dollar of equity, the company has approximately $9.92 in debt. This represents a high level of financial leverage.
- Shareholders’ Equity Trend
- From 2021 to 2023, shareholders’ equity experienced a deepening deficit, moving from -$14.999 billion to -$17.233 billion. This suggests accumulated losses or significant distributions to shareholders exceeding net income during this period. A significant turnaround occurred between 2023 and 2025, with equity shifting to a positive $5.454 billion. This improvement likely reflects increased profitability, asset revaluations, or capital infusions. The substantial change in equity is the most prominent feature of the period.
- Total Debt Trend
- Total debt demonstrated a modest decrease over the five-year period, falling from $58.102 billion in 2021 to $54.098 billion in 2025. While generally decreasing, there was a slight increase between 2023 and 2024, from $52.307 billion to $53.864 billion. This suggests potential debt financing activities or a temporary pause in debt reduction efforts. The overall reduction in debt, however, is less dramatic than the shift in shareholders’ equity.
In summary, the company’s solvency profile underwent a significant transformation. The transition from negative to positive shareholders’ equity, coupled with a moderate decrease in total debt, resulted in a high debt to equity ratio by 2025. The improvement in equity is a positive development, but the high leverage warrants continued monitoring.
Debt to Equity (including Operating Lease Liability)
Boeing Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | 8,461) | 1,278) | 5,204) | 5,190) | 1,296) | |
| Long-term debt, excluding current portion | 45,637) | 52,586) | 47,103) | 51,811) | 56,806) | |
| Total debt | 54,098) | 53,864) | 52,307) | 57,001) | 58,102) | |
| Current portion of operating lease liabilities | 335) | 324) | 296) | 276) | 268) | |
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | 1,932) | 1,770) | 1,518) | 1,305) | 1,271) | |
| Total debt (including operating lease liability) | 56,365) | 55,958) | 54,121) | 58,582) | 59,641) | |
| Shareholders’ equity (deficit) | 5,454) | (3,908) | (17,233) | (15,883) | (14,999) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 10.33 | — | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Caterpillar Inc. | — | 2.00 | 1.97 | 2.37 | 2.33 | |
| Eaton Corp. plc | — | 0.54 | 0.52 | 0.54 | 0.55 | |
| GE Aerospace | 1.15 | 1.05 | 0.84 | 0.96 | 0.94 | |
| Honeywell International Inc. | — | 1.73 | 1.36 | 1.23 | 1.11 | |
| Lockheed Martin Corp. | 3.39 | 3.38 | 2.73 | 1.81 | 1.19 | |
| RTX Corp. | — | 0.72 | 0.76 | 0.47 | 0.46 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | — | 1.60 | 1.61 | 1.39 | 1.32 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | — | 1.55 | 1.71 | 1.59 | 1.54 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity (deficit)
= 56,365 ÷ 5,454 = 10.33
2 Click competitor name to see calculations.
The period between 2021 and 2025 demonstrates significant fluctuations in the company’s solvency position, as indicated by the debt to equity ratio. Total debt, inclusive of operating lease liabilities, exhibited a decreasing trend from 2021 to 2023, followed by modest increases in 2024 and 2025. However, the most substantial driver of change in the debt to equity ratio is the movement in shareholders’ equity, which transitioned from a substantial deficit to a positive value over the analyzed timeframe.
- Total Debt
- Total debt decreased from US$59,641 million in 2021 to US$54,121 million in 2023, representing a reduction of approximately 9.3%. This decrease suggests a potential focus on debt reduction or improved cash flow management during this period. Subsequently, debt increased to US$55,958 million in 2024 and further to US$56,365 million in 2025, indicating a possible resumption of borrowing or increased investment activity.
- Shareholders’ Equity
- Shareholders’ equity began as a deficit of US$14,999 million in 2021 and continued to worsen, reaching a deficit of US$17,233 million in 2023. This sustained negative equity position indicates accumulated losses exceeding contributed capital. A dramatic shift occurred in 2024, with equity improving significantly to a deficit of US$3,908 million, and culminating in a positive equity position of US$5,454 million in 2025. This turnaround suggests substantial profitability or capital injections during these years.
- Debt to Equity Ratio
- The debt to equity ratio is not available for the years 2021, 2022, 2023, and 2024. However, the ratio is reported as 10.33 for 2025. Given the substantial shift from negative to positive shareholders’ equity, this ratio reflects a high level of debt relative to equity, despite the debt reduction observed earlier in the period. The ratio’s value in 2025 suggests the company still relies heavily on debt financing, even with the improved equity position.
In summary, while the company demonstrated some success in reducing its debt burden between 2021 and 2023, the primary driver of the change in the debt to equity ratio is the recovery of shareholders’ equity. The 2025 ratio of 10.33 indicates a continued reliance on debt financing, despite the positive equity balance.
Debt to Capital
Boeing Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | 8,461) | 1,278) | 5,204) | 5,190) | 1,296) | |
| Long-term debt, excluding current portion | 45,637) | 52,586) | 47,103) | 51,811) | 56,806) | |
| Total debt | 54,098) | 53,864) | 52,307) | 57,001) | 58,102) | |
| Shareholders’ equity (deficit) | 5,454) | (3,908) | (17,233) | (15,883) | (14,999) | |
| Total capital | 59,552) | 49,956) | 35,074) | 41,118) | 43,103) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.91 | 1.08 | 1.49 | 1.39 | 1.35 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Caterpillar Inc. | — | 0.66 | 0.66 | 0.70 | 0.70 | |
| Eaton Corp. plc | — | 0.33 | 0.33 | 0.34 | 0.34 | |
| GE Aerospace | 0.52 | 0.50 | 0.43 | 0.47 | 0.47 | |
| Honeywell International Inc. | — | 0.63 | 0.56 | 0.54 | 0.51 | |
| Lockheed Martin Corp. | 0.76 | 0.76 | 0.72 | 0.63 | 0.52 | |
| RTX Corp. | — | 0.41 | 0.42 | 0.31 | 0.30 | |
| Debt to Capital, Sector | ||||||
| Capital Goods | — | 0.61 | 0.61 | 0.57 | 0.56 | |
| Debt to Capital, Industry | ||||||
| Industrials | — | 0.58 | 0.60 | 0.59 | 0.58 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 54,098 ÷ 59,552 = 0.91
2 Click competitor name to see calculations.
The Debt to Capital ratio exhibits a fluctuating pattern over the five-year period. Initially, the ratio increased before declining significantly in subsequent years.
- Overall Trend
- The Debt to Capital ratio began at 1.35 in 2021 and rose to 1.39 in 2022. This was followed by a substantial increase to 1.49 in 2023. A marked decrease was then observed, falling to 1.08 in 2024 and further to 0.91 in 2025.
- Initial Increase (2021-2023)
- From 2021 to 2023, the ratio demonstrated an increasing trend. This suggests a growing reliance on debt financing relative to capital during this period. The increase from 1.35 to 1.49 indicates that debt grew at a faster rate than capital.
- Subsequent Decrease (2023-2025)
- Following the peak in 2023, the ratio experienced a considerable decline over the next two years. The reduction from 1.49 to 0.91 suggests a shift towards financing through capital rather than debt, or a reduction in overall debt levels. This could indicate improved financial leverage or a deliberate strategy to de-leverage.
- Underlying Components
- Total debt decreased from US$58,102 million in 2021 to US$52,307 million in 2023, before increasing slightly to US$54,098 million in 2025. Total capital decreased from US$43,103 million in 2021 to US$35,074 million in 2023, then increased substantially to US$59,552 million in 2025. The combined effect of these movements explains the observed trend in the Debt to Capital ratio.
The most significant change occurred between 2023 and 2025, with a decrease of 0.58 in the ratio. This represents a substantial improvement in the company’s solvency position as measured by this metric.
Debt to Capital (including Operating Lease Liability)
Boeing Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | 8,461) | 1,278) | 5,204) | 5,190) | 1,296) | |
| Long-term debt, excluding current portion | 45,637) | 52,586) | 47,103) | 51,811) | 56,806) | |
| Total debt | 54,098) | 53,864) | 52,307) | 57,001) | 58,102) | |
| Current portion of operating lease liabilities | 335) | 324) | 296) | 276) | 268) | |
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | 1,932) | 1,770) | 1,518) | 1,305) | 1,271) | |
| Total debt (including operating lease liability) | 56,365) | 55,958) | 54,121) | 58,582) | 59,641) | |
| Shareholders’ equity (deficit) | 5,454) | (3,908) | (17,233) | (15,883) | (14,999) | |
| Total capital (including operating lease liability) | 61,819) | 52,050) | 36,888) | 42,699) | 44,642) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.91 | 1.08 | 1.47 | 1.37 | 1.34 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Caterpillar Inc. | — | 0.67 | 0.66 | 0.70 | 0.70 | |
| Eaton Corp. plc | — | 0.35 | 0.34 | 0.35 | 0.36 | |
| GE Aerospace | 0.54 | 0.51 | 0.46 | 0.49 | 0.49 | |
| Honeywell International Inc. | — | 0.63 | 0.58 | 0.55 | 0.53 | |
| Lockheed Martin Corp. | 0.77 | 0.77 | 0.73 | 0.64 | 0.54 | |
| RTX Corp. | — | 0.42 | 0.43 | 0.32 | 0.31 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | — | 0.62 | 0.62 | 0.58 | 0.57 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | — | 0.61 | 0.63 | 0.61 | 0.61 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 56,365 ÷ 61,819 = 0.91
2 Click competitor name to see calculations.
The Debt to Capital ratio, including operating lease liability, exhibits a fluctuating pattern over the five-year period. Initially, the ratio increased before demonstrating a significant decline.
- Overall Trend
- From 2021 to 2023, the Debt to Capital ratio increased from 1.34 to 1.47. This indicates a growing reliance on debt financing relative to capital. However, from 2023 onward, the ratio decreased substantially, falling to 0.91 by 2025. This suggests a strengthening of the capital structure and reduced financial leverage.
- Year-over-Year Changes
- Between 2021 and 2022, the ratio rose from 1.34 to 1.37, a modest increase. The most significant increase occurred between 2022 and 2023, with the ratio climbing to 1.47. The subsequent year, 2024, saw a considerable decrease to 1.08. This downward trend continued into 2025, with the ratio reaching 0.91.
- Debt and Capital Movements
- Total debt, including operating lease liability, decreased from US$59,641 million in 2021 to US$54,121 million in 2023, then increased slightly to US$56,365 million by 2025. Total capital, including operating lease liability, decreased significantly from US$44,642 million in 2021 to US$36,888 million in 2023, before experiencing substantial growth, reaching US$61,819 million in 2025. The combined effect of these movements explains the observed trend in the Debt to Capital ratio.
The decrease in the Debt to Capital ratio in the later years of the period suggests improved solvency and a potentially more conservative financial posture.
Debt to Assets
Boeing Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | 8,461) | 1,278) | 5,204) | 5,190) | 1,296) | |
| Long-term debt, excluding current portion | 45,637) | 52,586) | 47,103) | 51,811) | 56,806) | |
| Total debt | 54,098) | 53,864) | 52,307) | 57,001) | 58,102) | |
| Total assets | 168,235) | 156,363) | 137,012) | 137,100) | 138,552) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.32 | 0.34 | 0.38 | 0.42 | 0.42 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Caterpillar Inc. | — | 0.44 | 0.43 | 0.45 | 0.46 | |
| Eaton Corp. plc | — | 0.24 | 0.24 | 0.25 | 0.25 | |
| GE Aerospace | 0.16 | 0.16 | 0.13 | 0.17 | 0.18 | |
| Honeywell International Inc. | — | 0.41 | 0.33 | 0.31 | 0.30 | |
| Lockheed Martin Corp. | 0.36 | 0.36 | 0.33 | 0.29 | 0.23 | |
| RTX Corp. | — | 0.25 | 0.27 | 0.20 | 0.20 | |
| Debt to Assets, Sector | ||||||
| Capital Goods | — | 0.31 | 0.29 | 0.28 | 0.28 | |
| Debt to Assets, Industry | ||||||
| Industrials | — | 0.31 | 0.31 | 0.31 | 0.30 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 54,098 ÷ 168,235 = 0.32
2 Click competitor name to see calculations.
The Debt-to-Assets ratio demonstrates a consistent downward trend over the five-year period examined. This indicates a decreasing reliance on debt financing relative to the company’s total asset base.
- Debt-to-Assets Ratio Trend
- In 2021 and 2022, the ratio remained stable at 0.42. This suggests a consistent capital structure during these years. A noticeable decrease occurred in 2023, with the ratio falling to 0.38. This decline continued in subsequent years, reaching 0.34 in 2024 and further decreasing to 0.32 in 2025.
The observed reduction in the Debt-to-Assets ratio suggests improved solvency. The company appears to be managing its debt levels effectively in relation to its asset growth. The increase in total assets from 2024 onwards, coupled with relatively stable total debt, contributes to this positive trend.
- Total Debt
- Total debt experienced a slight decrease from US$58,102 million in 2021 to US$57,001 million in 2022. It continued to decline to US$52,307 million in 2023, before experiencing a modest increase to US$53,864 million in 2024 and US$54,098 million in 2025. These fluctuations are relatively small compared to the changes in total assets.
- Total Assets
- Total assets remained relatively consistent between 2021 and 2023, fluctuating around US$137 million. A significant increase is observed in 2024, reaching US$156,363 million, and continues into 2025 with a further increase to US$168,235 million. This asset growth, alongside stable debt, is a primary driver of the declining Debt-to-Assets ratio.
The consistent decrease in the Debt-to-Assets ratio over the period suggests a strengthening financial position. The company is becoming less reliant on debt to finance its assets, which could indicate improved financial flexibility and reduced risk.
Debt to Assets (including Operating Lease Liability)
Boeing Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | 8,461) | 1,278) | 5,204) | 5,190) | 1,296) | |
| Long-term debt, excluding current portion | 45,637) | 52,586) | 47,103) | 51,811) | 56,806) | |
| Total debt | 54,098) | 53,864) | 52,307) | 57,001) | 58,102) | |
| Current portion of operating lease liabilities | 335) | 324) | 296) | 276) | 268) | |
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | 1,932) | 1,770) | 1,518) | 1,305) | 1,271) | |
| Total debt (including operating lease liability) | 56,365) | 55,958) | 54,121) | 58,582) | 59,641) | |
| Total assets | 168,235) | 156,363) | 137,012) | 137,100) | 138,552) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.34 | 0.36 | 0.40 | 0.43 | 0.43 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Caterpillar Inc. | — | 0.44 | 0.44 | 0.46 | 0.46 | |
| Eaton Corp. plc | — | 0.26 | 0.26 | 0.26 | 0.27 | |
| GE Aerospace | 0.17 | 0.17 | 0.14 | 0.19 | 0.19 | |
| Honeywell International Inc. | — | 0.43 | 0.35 | 0.33 | 0.32 | |
| Lockheed Martin Corp. | 0.38 | 0.39 | 0.36 | 0.32 | 0.26 | |
| RTX Corp. | — | 0.27 | 0.28 | 0.21 | 0.21 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | — | 0.32 | 0.30 | 0.30 | 0.29 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | — | 0.35 | 0.35 | 0.34 | 0.34 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 56,365 ÷ 168,235 = 0.34
2 Click competitor name to see calculations.
The Debt to Assets ratio, including operating lease liability, demonstrates a declining trend over the five-year period. Total debt decreased from $59.641 billion in 2021 to $56.365 billion in 2025, while total assets increased from $138.552 billion to $168.235 billion over the same timeframe. This combination resulted in a consistent reduction in the ratio.
- Debt to Assets Ratio Trend
- The ratio stood at 0.43 in both 2021 and 2022, indicating a stable level of financial leverage. A decrease to 0.40 was observed in 2023, followed by further reductions to 0.36 in 2024 and 0.34 in 2025. This suggests a strengthening of the company’s solvency position.
The increase in total assets outpaced the decrease in total debt, contributing to the observed decline in the ratio. This could be attributed to increased operational efficiency, asset appreciation, or strategic investments. The consistent reduction in the Debt to Assets ratio suggests a decreasing reliance on debt financing relative to the company’s asset base.
- Debt Levels
- While total debt experienced a slight increase between 2024 and 2025, the growth in total assets was more substantial, continuing the downward trend in the ratio. The initial decrease in debt from 2021 to 2023 indicates proactive debt management strategies were in place.
The observed trend suggests a reduced level of financial risk associated with debt obligations. A lower ratio generally indicates a greater ability to meet long-term obligations and a stronger financial foundation.
Financial Leverage
Boeing Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 168,235) | 156,363) | 137,012) | 137,100) | 138,552) | |
| Shareholders’ equity (deficit) | 5,454) | (3,908) | (17,233) | (15,883) | (14,999) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 30.85 | — | — | — | — | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Caterpillar Inc. | — | 4.50 | 4.49 | 5.16 | 5.02 | |
| Eaton Corp. plc | — | 2.08 | 2.02 | 2.06 | 2.07 | |
| GE Aerospace | 6.97 | 6.37 | 5.96 | 5.16 | 4.93 | |
| Honeywell International Inc. | — | 4.04 | 3.88 | 3.73 | 3.47 | |
| Lockheed Martin Corp. | 8.90 | 8.78 | 7.67 | 5.71 | 4.64 | |
| RTX Corp. | — | 2.71 | 2.71 | 2.19 | 2.21 | |
| Financial Leverage, Sector | ||||||
| Capital Goods | — | 5.05 | 5.35 | 4.71 | 4.55 | |
| Financial Leverage, Industry | ||||||
| Industrials | — | 4.49 | 4.94 | 4.65 | 4.52 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 168,235 ÷ 5,454 = 30.85
2 Click competitor name to see calculations.
An examination of the provided financial information reveals a complex picture of the company’s financial leverage over the five-year period. Total assets exhibited a relatively stable pattern from 2021 to 2023, fluctuating around US$137 billion, before increasing significantly in 2024 and 2025, reaching US$168.235 billion. Shareholders’ equity demonstrated a consistent decline from 2021 to 2023, moving from a negative US$14.999 billion to a negative US$17.233 billion. This trend reversed sharply in 2024, with equity becoming positive at US$ -3.908 billion, and continuing to improve substantially in 2025, reaching US$5.454 billion.
- Financial Leverage
- Financial leverage is only reported for 2025, at a ratio of 30.85. This indicates a substantial reliance on debt financing relative to equity. The absence of this ratio for prior years limits comparative analysis, but the 2025 value suggests a significant shift in the company’s capital structure, potentially reflecting increased borrowing or a restructuring of its financial position. The substantial increase in shareholders’ equity in 2024 and 2025 likely contributed to the calculation of this ratio, but the high value warrants further investigation.
The negative shareholders’ equity from 2021 to 2023 is a noteworthy observation, suggesting accumulated losses exceeding contributed capital. The turnaround in shareholders’ equity in 2024 and 2025 is a positive development, but the high financial leverage ratio in 2025 indicates that the company’s financial risk remains elevated. The increase in total assets alongside the improvement in equity suggests potential operational improvements or strategic investments. However, without additional context, the implications of these changes are difficult to fully assess.
Further analysis would benefit from examining the components of both total assets and shareholders’ equity, as well as a more detailed breakdown of the company’s debt structure. Understanding the drivers behind the changes in these key financial items is crucial for a comprehensive assessment of the company’s solvency.
Interest Coverage
Boeing Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to Boeing shareholders | 2,235) | (11,817) | (2,222) | (4,935) | (4,202) | |
| Add: Net income attributable to noncontrolling interest | 3) | (12) | (20) | (118) | (88) | |
| Add: Income tax expense | 397) | (381) | 237) | 31) | (743) | |
| Add: Interest and debt expense | 2,771) | 2,725) | 2,459) | 2,533) | 2,682) | |
| Earnings before interest and tax (EBIT) | 5,406) | (9,485) | 454) | (2,489) | (2,351) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 1.95 | -3.48 | 0.18 | -0.98 | -0.88 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Caterpillar Inc. | — | 27.21 | 26.66 | 20.80 | 17.88 | |
| Eaton Corp. plc | — | 36.12 | 26.34 | 21.22 | 21.11 | |
| GE Aerospace | 12.86 | 8.73 | 10.12 | 1.88 | -0.96 | |
| Honeywell International Inc. | — | 7.82 | 10.36 | 16.41 | 22.09 | |
| Lockheed Martin Corp. | 6.30 | 7.00 | 9.84 | 11.72 | 14.27 | |
| RTX Corp. | — | 4.14 | 3.32 | 5.64 | 4.71 | |
| Interest Coverage, Sector | ||||||
| Capital Goods | — | 4.92 | 6.84 | 4.84 | 3.98 | |
| Interest Coverage, Industry | ||||||
| Industrials | — | 5.79 | 6.64 | 4.98 | 5.14 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,406 ÷ 2,771 = 1.95
2 Click competitor name to see calculations.
The interest coverage ratio exhibits significant volatility over the observed period. Initially negative, the ratio transitions to positive values before experiencing another substantial decline, ultimately recovering to a positive level by the end of the period.
- Earnings before Interest and Tax (EBIT)
- EBIT is negative in 2021 and 2022, reaching lows of -2,351 and -2,489 US$ millions respectively. A positive value of 454 US$ millions is recorded in 2023, but this is followed by a significant decrease to -9,485 US$ millions in 2024. EBIT recovers substantially in 2025, reaching 5,406 US$ millions.
- Interest and Debt Expense
- Interest and debt expense remains relatively stable throughout the period, fluctuating between 2,459 and 2,771 US$ millions. A slight decrease is observed from 2021 to 2022, followed by a minor increase in 2023. Expenses increase again in 2024 and 2025, but remain within the established range.
- Interest Coverage Ratio
- The interest coverage ratio is negative in 2021 (-0.88) and 2022 (-0.98), indicating that earnings were insufficient to cover interest obligations. The ratio becomes positive in 2023 (0.18), albeit marginally. A substantial decline occurs in 2024, resulting in a ratio of -3.48. The ratio recovers significantly in 2025, reaching 1.95, suggesting improved ability to meet interest payments.
The fluctuations in the interest coverage ratio are primarily driven by changes in EBIT. While interest expense remains relatively consistent, the substantial swings in earnings significantly impact the company’s ability to comfortably cover its interest obligations. The negative ratios in 2021, 2022, and 2024 suggest periods of financial strain, while the positive ratios in 2023 and 2025 indicate improved solvency.
Fixed Charge Coverage
Boeing Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| U.S. federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to Boeing shareholders | 2,235) | (11,817) | (2,222) | (4,935) | (4,202) | |
| Add: Net income attributable to noncontrolling interest | 3) | (12) | (20) | (118) | (88) | |
| Add: Income tax expense | 397) | (381) | 237) | 31) | (743) | |
| Add: Interest and debt expense | 2,771) | 2,725) | 2,459) | 2,533) | 2,682) | |
| Earnings before interest and tax (EBIT) | 5,406) | (9,485) | 454) | (2,489) | (2,351) | |
| Add: Operating lease expense | 601) | 530) | 457) | 421) | 380) | |
| Earnings before fixed charges and tax | 6,007) | (8,955) | 911) | (2,068) | (1,971) | |
| Interest and debt expense | 2,771) | 2,725) | 2,459) | 2,533) | 2,682) | |
| Operating lease expense | 601) | 530) | 457) | 421) | 380) | |
| Mandatory convertible preferred stock dividends accumulated during the period | 345) | 58) | —) | —) | —) | |
| Mandatory convertible preferred stock dividends accumulated during the period, tax adjustment1 | 92) | 15) | —) | —) | —) | |
| Mandatory convertible preferred stock dividends accumulated during the period, after tax adjustment | 437) | 73) | —) | —) | —) | |
| Fixed charges | 3,809) | 3,328) | 2,916) | 2,954) | 3,062) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 1.58 | -2.69 | 0.31 | -0.70 | -0.64 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Caterpillar Inc. | — | 20.25 | 19.73 | 14.92 | 12.73 | |
| Eaton Corp. plc | — | 13.79 | 11.90 | 10.01 | 10.40 | |
| GE Aerospace | 9.14 | 6.19 | 5.25 | 1.35 | -0.22 | |
| Honeywell International Inc. | — | 6.44 | 8.13 | 11.00 | 13.67 | |
| Lockheed Martin Corp. | 5.30 | 5.80 | 7.81 | 8.44 | 9.95 | |
| RTX Corp. | — | 3.59 | 2.81 | 4.40 | 3.66 | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | — | 4.03 | 5.14 | 3.61 | 3.06 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | — | 3.96 | 4.32 | 3.30 | 3.44 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Mandatory convertible preferred stock dividends accumulated during the period, tax adjustment = (Mandatory convertible preferred stock dividends accumulated during the period × U.S. federal statutory tax rate) ÷ (1 − U.S. federal statutory tax rate)
= (345 × 21.00%) ÷ (1 − 21.00%) = 92
2 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,007 ÷ 3,809 = 1.58
3 Click competitor name to see calculations.
The period under review demonstrates significant volatility in fixed charge coverage. Initial years exhibit negative coverage, followed by improvement and subsequent deterioration before a final recovery. Earnings before fixed charges and tax fluctuate considerably, driving these changes in coverage.
- Earnings Before Fixed Charges and Tax
- Earnings before fixed charges and tax were negative in both 2021 and 2022, registering -1,971 and -2,068 US$ millions respectively. A substantial positive shift occurred in 2023, with earnings reaching 911 US$ millions. However, this was followed by a significant decline in 2024 to -8,955 US$ millions, before recovering to 6,007 US$ millions in 2025.
- Fixed Charges
- Fixed charges exhibited relative stability between 2021 and 2023, ranging from 2,916 to 3,062 US$ millions. An increase was observed in 2024, reaching 3,328 US$ millions, and continued into 2025 with a further rise to 3,809 US$ millions. This upward trend in fixed charges contributes to the challenges in achieving positive fixed charge coverage during periods of lower earnings.
- Fixed Charge Coverage
- Fixed charge coverage was negative in 2021 and 2022, at -0.64 and -0.70 respectively, indicating an inability to cover fixed charges with available earnings. Coverage improved substantially in 2023 to 0.31, suggesting a limited ability to meet fixed obligations. A sharp decline occurred in 2024, with coverage falling to -2.69, representing a significant shortfall. The final year, 2025, showed a marked improvement, with coverage rising to 1.58, indicating a comfortable ability to cover fixed charges.
The substantial fluctuations in earnings before fixed charges and tax are the primary driver of the observed changes in fixed charge coverage. While fixed charges increased over the period, the more significant factor was the volatility of earnings. The recovery in 2025 suggests improved operational performance or financial management, but the prior period of negative coverage warrants continued monitoring.