Boeing Co. (NYSE:BA)

The solvency position, as indicated by the provided ratios, exhibits considerable fluctuation over the observed period. A general trend of increasing debt relative to capital is apparent in the earlier part of the period, followed by a significant shift towards reduced leverage in later quarters. However, profitability remains a concern, as evidenced by consistently negative or low interest coverage.

Debt to Equity

Debt to equity information is sparse, with values only available from the final quarter of the observed period, reporting a ratio of 9.92. This suggests a substantial reliance on debt financing relative to shareholder equity at that point in time.

Debt to Capital

The debt to capital ratio generally increased from 1.36 in March 2022 to 1.69 in September 2024, indicating a growing proportion of debt financing compared to total capital. A notable decrease is then observed, falling to 0.91 by December 2025. This suggests a deliberate effort to reduce debt or increase equity, or a combination of both. The initial increase may reflect increased borrowing to fund operations or investments, while the subsequent decline indicates improved financial flexibility.

Debt to Assets

The debt to assets ratio demonstrates relative stability between March 2022 and December 2023, fluctuating between 0.38 and 0.43. A decline to 0.34 is observed in March 2024 and remains at that level through September 2025, before increasing slightly to 0.36. This suggests a decreasing proportion of assets financed by debt, aligning with the trend observed in the debt to capital ratio.

Financial Leverage

Similar to debt to equity, financial leverage data is limited. The ratio reported for December 2025 is 30.85, indicating a high degree of financial leverage at that time. This implies that a relatively small change in assets can result in a large change in equity.

Interest Coverage

The interest coverage ratio consistently demonstrates negative values from March 2022 through September 2024, indicating an inability to cover interest expenses with earnings before interest and taxes. While the ratio improves to 0.18 in December 2022, it remains volatile, returning to negative values before finally turning positive at 1.95 in December 2025. This suggests a prolonged period of financial distress regarding debt servicing, with a recent improvement in the ability to meet interest obligations. The negative values highlight a significant risk to the company’s financial health during much of the observed period.

In summary, the company experienced a period of increasing debt relative to capital and assets, coupled with an inability to comfortably cover interest expenses. However, more recent quarters show a positive trend towards reduced leverage and improved, though still relatively low, interest coverage. Continued monitoring of these ratios is crucial to assess the sustainability of this improvement.

The Debt-to-Equity ratio exhibits significant volatility throughout the observed period. Initially, the ratio is unavailable for the first three quarters of 2022. A notable feature is the presence of negative shareholders’ equity for much of the period, which significantly influences the ratio’s interpretation.

Overall Trend

From the end of 2022 through the first half of 2023, the Debt-to-Equity ratio remains elevated, reflecting a continued negative equity position. A substantial shift occurs in the latter half of 2024 and into 2025. The ratio increases dramatically to 9.92 by December 31, 2025, driven by an increase in total debt alongside a transition from negative to positive shareholders’ equity.

Debt Levels

Total debt generally decreased from $57.741 billion in March 2022 to $47.940 billion in March 2024. However, it then increased to $54.098 billion by December 2025. This suggests a period of debt reduction followed by renewed borrowing or financing activities.

Equity Position

Shareholders’ equity remained negative until the end of 2024, reaching a low of -$23.552 billion in September 2024. The transition to positive equity of $5.454 billion by December 2025 is a significant development. This shift fundamentally alters the Debt-to-Equity ratio calculation and interpretation.

Ratio Volatility

The ratio’s substantial fluctuation, particularly the increase to 9.92 in December 2025, warrants further investigation. The change is primarily attributable to the move from negative to positive equity, amplifying the impact of the debt level. The ratio should be considered in conjunction with other solvency and profitability metrics to gain a comprehensive understanding of the company’s financial health.

The observed trends indicate a period of financial restructuring and potential recovery. The transition to positive equity is a positive sign, but the increased debt level and resulting Debt-to-Equity ratio require continued monitoring.

The debt to capital ratio exhibits considerable fluctuation throughout the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio remained relatively stable, hovering around 1.35 to 1.45 for the first three quarters of 2022, before decreasing slightly to 1.39 by the end of the year. This trend continued into the first half of 2023, with a further decline to 1.42, followed by a peak of 1.49 in September 2023.

A significant increase is then observed in the ratio, reaching 1.55 in March 2024. While decreasing to 1.45 in June 2024, the ratio then experiences a substantial jump to 1.69 in September 2024. This is followed by a dramatic decrease to 1.08 by December 2024, and remains relatively stable at 1.07 and 1.18 through the first three quarters of 2025. The period concludes with a notable decline to 0.91 in December 2025.

Initial Stability (Mar 31, 2022 – Dec 31, 2022)

The debt to capital ratio demonstrates a period of relative stability, fluctuating within a narrow range. This suggests a consistent capital structure during this timeframe, with debt and capital growing at similar rates.

Increasing Leverage (Sep 30, 2023 – Sep 30, 2024)

From September 2023 to September 2024, the ratio consistently increased, indicating a growing reliance on debt financing relative to capital. This could be due to increased borrowing or a decrease in equity.

Deleveraging (Dec 31, 2024 – Dec 31, 2025)

The final portion of the period shows a marked decrease in the debt to capital ratio. This suggests a reduction in debt levels, an increase in capital, or a combination of both. The ratio falling below 1.0 in December 2025 indicates that capital exceeds debt.

Total Debt and Total Capital Trends

Total debt generally decreased from $57.741 billion in March 2022 to $54.098 billion in December 2025, although with some fluctuations. Total capital experienced a more volatile pattern, decreasing from $42.343 billion in March 2022 to $30.931 billion in March 2024, before increasing to $59.552 billion by December 2025. These movements in the underlying components significantly influence the observed ratio fluctuations.

The observed changes in the debt to capital ratio suggest shifts in the company’s financial strategy and capital structure over the analyzed period. The significant decrease in the ratio towards the end of the period may indicate improved financial health or a deliberate effort to reduce financial risk.

The debt-to-assets ratio for the analyzed period demonstrates a generally decreasing trend, with some fluctuations. Initially, the ratio remained relatively stable before exhibiting a more pronounced decline, followed by a partial recovery and subsequent decrease again.

Initial Stability (Mar 31, 2022 – Dec 31, 2022)

The debt-to-assets ratio began the period at 0.43 and remained consistently between 0.42 and 0.43 for the first three quarters. It concluded the year at 0.42, indicating a stable level of financial leverage during this timeframe.

Downward Trend (Mar 31, 2023 – Dec 31, 2023)

A noticeable downward trend emerged in the following quarters. The ratio decreased from 0.41 in March 2023 to 0.38 by the end of the year. This suggests a reduction in the proportion of assets financed by debt.

Fluctuation and Further Decline (Mar 31, 2024 – Jun 30, 2025)

The ratio experienced a slight increase to 0.41 in March 2024, before decreasing to 0.34 by the end of 2024. This was followed by a further decline to 0.32 in June 2025. This indicates a continued effort to reduce debt relative to assets, although with some volatility. The ratio reached its lowest point during this period at 0.32.

Recent Increase (Sep 30, 2025 – Dec 31, 2025)

The most recent two quarters show a slight increase in the ratio, moving from 0.36 to 0.32. While still relatively low, this suggests a potential shift in the company’s capital structure or a temporary increase in debt levels.

Overall, the observed trend suggests a deliberate strategy to decrease reliance on debt financing, although recent figures indicate a possible reversal of this trend. The ratio’s movement should be monitored in subsequent periods to determine if this is a temporary fluctuation or the beginning of a new pattern.

The financial leverage of the entity, as indicated by the provided figures, demonstrates a significant shift over the observed period. Initially, the financial leverage ratio is not reported for the first three quarters of 2022 and the first three quarters of 2023. However, a substantial increase is evident in the final quarter of 2025, reaching 30.85.

Shareholders’ Equity (Deficit)

Throughout the period from March 2022 to December 2024, shareholders’ equity consistently registers as a deficit, indicating that liabilities exceed assets. The magnitude of this deficit generally increases over time, moving from approximately -US$15.4 billion in March 2022 to -US$23.6 billion in September 2024. A notable improvement occurs in the first quarter of 2025, with the deficit decreasing to -US$3.3 billion, and further improving to a positive equity of US$5.5 billion by December 2025.

Total Assets

Total assets exhibit a fluctuating pattern. They initially decrease from US$135.8 billion in March 2022 to US$134.3 billion in September 2022, then increase to US$137.1 billion by December 2022. A subsequent decline is observed through June 2023, reaching US$134.8 billion. Assets then experience a more substantial increase, peaking at US$156.4 billion in March 2025, before settling at US$168.2 billion by December 2025.

Financial Leverage Trend

The reported financial leverage ratio of 30.85 in December 2025 signifies a high degree of financial risk. This indicates that for every dollar of equity, the entity has US$30.85 in assets financed by debt. The prior absence of reported leverage ratios makes it difficult to assess the historical context of this level, but the substantial increase in leverage coinciding with the shift from a significant equity deficit to a positive equity position suggests a restructuring or significant capital event occurred during that period. The improvement in shareholders’ equity is a positive development, but the high leverage ratio warrants careful monitoring.

In summary, the entity experienced a period of negative shareholders’ equity, followed by a substantial improvement and a concurrent, significant increase in financial leverage. The final reported leverage ratio suggests a highly leveraged capital structure, which could present increased financial risk.

The interest coverage ratio exhibits significant volatility throughout the observed period, ranging from negative values to a positive peak. Initial values are negative, indicating that earnings before interest and tax were insufficient to cover interest and debt expenses. A period of improvement follows, but is punctuated by further negative values before a substantial positive shift towards the end of the period.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The interest coverage ratio begins with negative values, starting at -1.31 and fluctuating between -0.98 and -2.54. This suggests a consistent inability to generate sufficient earnings to meet interest obligations during this timeframe. The ratio demonstrates some fluctuation, but remains firmly below zero.

Recovery and Subsequent Decline (Mar 31, 2023 – Sep 30, 2024)

A slight improvement is observed in the first half of 2023, with the ratio reaching -0.53 and -0.85. However, this is followed by a return to negative territory, culminating in a low of -3.48 by September 2024. The ratio remains negative throughout this period, though with less extreme values than the initial period.

Significant Improvement (Mar 31, 2025 – Dec 31, 2025)

A dramatic shift occurs in the final quarters of the observed period. The ratio becomes positive, reaching 1.95 by December 31, 2025. This indicates a substantial increase in earnings relative to interest expenses, suggesting improved solvency. The positive value represents a significant departure from the preceding trend.

Overall, the trend demonstrates a prolonged period of inadequate earnings coverage of interest expenses, followed by a notable and recent improvement. The volatility of the ratio suggests sensitivity to changes in either earnings or interest expense, or both. The final positive value indicates a potentially improved financial position, but the prior negative trend warrants continued monitoring.