Microsoft Excel LibreOffice Calc

Boeing Co. (BA)


Long-term Debt and Solvency Analysis

Difficulty: Beginner


Ratios (Summary)

Boeing Co., debt and solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Debt to equity 40.85 31.32 12.18 1.57 1.05
Debt to capital 0.98 0.97 0.92 0.61 0.51
Interest coverage 25.39 28.90 19.19 27.01 22.46

Based on: 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), 10-K (filing date: 2015-02-12).

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Boeing Co.’s debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Boeing Co.’s debt-to-capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Boeing Co.’s interest coverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Debt to Equity

Boeing Co., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Short-term debt and current portion of long-term debt 3,190  1,335  384  1,234  929 
Long-term debt, excluding current portion 10,657  9,782  9,568  8,730  8,141 
Total debt 13,847  11,117  9,952  9,964  9,070 
Shareholders’ equity 339  355  817  6,335  8,665 
Ratio
Debt to equity1 40.85 31.32 12.18 1.57 1.05
Benchmarks
Debt to Equity, Competitors
General Dynamics Corp. 1.06 0.35 0.35 0.32 0.33
Lockheed Martin Corp. 10.12 9.45 4.93 1.81
Northrop Grumman Corp. 1.76 2.17 1.34 1.18 0.82
Raytheon Co. 0.44 0.51 0.53 0.53 0.56
United Technologies Corp. 1.18 0.93 0.87 0.75 0.63
Debt to Equity, Sector
Aerospace & Defense 1.47 1.34 1.15 0.96 0.70
Debt to Equity, Industry
Industrials 1.51 1.36 1.31 1.30 1.50

Based on: 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), 10-K (filing date: 2015-02-12).

2018 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity
= 13,847 ÷ 339 = 40.85

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Boeing Co.’s debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Debt to Capital

Boeing Co., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Short-term debt and current portion of long-term debt 3,190  1,335  384  1,234  929 
Long-term debt, excluding current portion 10,657  9,782  9,568  8,730  8,141 
Total debt 13,847  11,117  9,952  9,964  9,070 
Shareholders’ equity 339  355  817  6,335  8,665 
Total capital 14,186  11,472  10,769  16,299  17,735 
Ratio
Debt to capital1 0.98 0.97 0.92 0.61 0.51
Benchmarks
Debt to Capital, Competitors
General Dynamics Corp. 0.51 0.26 0.26 0.24 0.25
Lockheed Martin Corp. 0.91 1.05 0.90 0.83 0.64
Northrop Grumman Corp. 0.64 0.68 0.57 0.54 0.45
Raytheon Co. 0.31 0.34 0.35 0.34 0.36
United Technologies Corp. 0.54 0.48 0.46 0.43 0.39
Debt to Capital, Sector
Aerospace & Defense 0.60 0.57 0.53 0.49 0.41
Debt to Capital, Industry
Industrials 0.60 0.58 0.57 0.56 0.60

Based on: 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), 10-K (filing date: 2015-02-12).

2018 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 13,847 ÷ 14,186 = 0.98

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Boeing Co.’s debt-to-capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Interest Coverage

Boeing Co., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Net earnings related to parent 10,460  8,197  4,895  5,176  5,446 
Add: Net income attributable to noncontrolling interest (21) (2) (1) (3) 10 
Add: Income tax expense 1,144  1,850  673  1,979  1,691 
Add: Interest and debt expense 475  360  306  275  333 
Earnings before interest and tax (EBIT) 12,058  10,405  5,873  7,427  7,480 
Ratio
Interest coverage1 25.39 28.90 19.19 27.01 22.46
Benchmarks
Interest Coverage, Competitors
General Dynamics Corp. 11.92 35.85 43.74 42.86 37.91
Lockheed Martin Corp. 9.74 9.09 8.37 12.34 16.46
Northrop Grumman Corp. 7.66 9.47 10.71 10.27 11.41
Raytheon Co. 18.10 16.19 14.06 12.96 15.00
United Technologies Corp. 7.76 8.63 7.14 7.84 9.08
Interest Coverage, Sector
Aerospace & Defense 11.51 13.29 11.05 13.34 14.08
Interest Coverage, Industry
Industrials 7.01 7.95 8.24 10.83 7.76

Based on: 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), 10-K (filing date: 2015-02-12).

2018 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= 12,058 ÷ 475 = 25.39

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Boeing Co.’s interest coverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.