Boeing Co. (NYSE:BA)

The debt to capital ratio exhibits moderate fluctuations over the reported periods. Initially, it decreased from 1.33 at the end of March 2020 to around 1.23-1.24 in the middle of 2020, but then it increased consistently, peaking at 1.69 by the end of 2024 before reducing to approximately 1.07 by mid-2025. This pattern indicates an overall increase in capital structure leverage during most of the timeline, followed by a notable deleveraging towards the end.

The debt to assets ratio started relatively low at 0.27 in early 2020 but quickly rose to near 0.42-0.43 through 2020 and 2021, suggesting growing reliance on debt in asset financing. From early 2022 onward, the ratio stabilized mostly between 0.34 and 0.42, reflecting a more balanced approach to asset financing despite some minor fluctuations. The general trend points to maintenance of moderate leverage concerning asset base in recent periods.

The interest coverage ratio reveals significant volatility with multiple periods showing negative values, highlighting challenges in covering interest expenses from operational earnings. From late 2020 to mid-2023, the ratio remained predominantly negative, reaching lows around -5.71 and generally staying below zero, which implies operational earnings were insufficient to service interest obligations during that time. A brief improvement emerged around early to mid-2024 when the ratio slightly turned positive, reaching a peak of 0.21, indicating a transient ability to cover interest costs. However, this was not sustained, as the ratio reverted to negative figures by late 2024 and into 2025, denoting recurring difficulties in interest expense coverage.

Overall, the data indicate a capital structure characterized by relatively high and somewhat fluctuating leverage ratios, with debt levels increasing notably during certain periods but declining toward the end of the timeline. The persistent negative interest coverage ratios for much of the timespan raise concerns about profitability or cash flow adequacy to cover financing costs. Temporary improvements in interest coverage suggest some operational recovery, but the lack of consistency underscores ongoing financial strain in servicing debt.

The analysis of the quarterly financial data reveals several significant trends in the company’s debt levels and shareholders’ equity over the examined periods.

Total Debt

The total debt exhibited a marked increase from March 31, 2020, to June 30, 2020, rising sharply from approximately 38.9 billion USD to about 61.4 billion USD. Following this spike, debt levels remained relatively stable with minor fluctuations, maintaining figures generally in the vicinity of 57 billion to 63 billion USD through December 2023. Starting in March 2024, a notable decline in total debt is observed, falling from approximately 48.0 billion USD to about 53.3 billion USD by June 2025. This recent downward trend indicates efforts toward debt reduction after a prolonged period of elevated leverage.

Shareholders’ Deficit

Shareholders’ deficit remained consistently negative throughout the periods, reflecting a persistent deficit in equity. Initially, the deficit widened significantly, reaching approximately -18.3 billion USD by December 31, 2020, compared to about -9.7 billion USD in March 2020. This points to deteriorating equity positions during 2020. From 2021 through 2023, the deficit remained volatile but showed some signs of moderate recovery or stabilization, fluctuating mostly between -15 billion USD and -17 billion USD. However, in early 2024, a sharp improvement occurs, with the deficit narrowing dramatically to approximately -3.3 billion USD by June 2025, suggesting an enhancement in equity or reduction in accumulated losses.

Debt to Equity Ratio

Although exact numerical values for the debt to equity ratio are not provided, implied trends can be deduced by comparing total debt and shareholders’ deficit. The considerable increase in debt combined with a deeper shareholders’ deficit through late 2020 implies a worsening leverage position during this period. The stabilization phase in debt accompanied with fluctuating deficit levels from 2021 to 2023 indicates no clear deleveraging. Nonetheless, the marked decrease in both debt and shareholders’ deficit in 2024 and 2025 suggests a potential improvement in the debt to equity ratio, moving towards a more balanced capital structure.

In summary, the financial data portrays a company that faced increased debt burdens and declining equity during 2020, likely due to adverse conditions or strategic financing decisions. The subsequent years display efforts to stabilize the balance sheet with partial recovery in equity positions. The most recent quarters show a promising reduction in debt alongside a significant equity improvement, indicating a shift towards improved financial health and potentially lower financial risk going forward.

Total Debt

The total debt showed a significant increase from March 31, 2020 to June 30, 2020, rising from 38,927 million USD to 61,379 million USD. Following this peak, the total debt exhibited a relatively stable but gradually decreasing trend up to December 31, 2021, declining to 58,102 million USD. From March 31, 2022 to December 31, 2022, total debt remained almost steady around the 57,000 million USD mark. Subsequently, a moderate downward trend is observed through 2023 with values decreasing from 55,391 million USD to 52,307 million USD by December 31, 2023. However, starting in the first quarter of 2024, debt levels fluctuated, initially declining to 47,940 million USD by March 31, 2024, then rebounding to peak at 57,927 million USD by June 30, 2024. After this peak, total debt fell steadily through mid-2025, finishing at 53,323 million USD by December 31, 2025.

Total Capital

Total capital increased markedly from 29,262 million USD at March 31, 2020 to 49,712 million USD by June 30, 2020. However, a declining trend then emerged, with total capital decreasing to 43,103 million USD by December 31, 2021. From March 31, 2022 through December 31, 2022, total capital demonstrated volatility, moving down from 42,343 million USD to 41,118 million USD. The downward trend continued through 2023, with total capital dropping from 39,883 million USD in the first quarter to 35,074 million USD in the last quarter of the year. The decline accelerated during 2024, with total capital reaching a low of 30,931 million USD by March 31, 2024, before recovering somewhat to 49,956 million USD by the first quarter of 2025 and stabilizing above 50,000 million USD in subsequent quarters until June 30, 2025.

Debt to Capital Ratio

The debt to capital ratio began at 1.33 in March 2020, then decreased slightly to 1.23 in June 2020. Subsequently, the ratio rose again, reaching 1.4 by December 2020 and maintaining near this level through mid-2021. From the second half of 2021 to the end of 2023, this ratio showed a generally increasing trend, peaking at 1.55 by March 31, 2024. A notable spike occurred in the first quarter of 2025, with the ratio rising to 1.69. However, in the remaining quarters of 2025, the ratio sharply decreased to approximately 1.07, signaling a significant improvement in the relationship between debt and capital.

Overall Insights

Initial rapid debt accumulation in early 2020 was followed by a gradual reduction and stabilization of debt levels. Total capital experienced volatility with initial gains during early 2020, followed by a prolonged decline into 2024, before recovering to levels comparable with mid-2020 by early 2025. Debt to capital ratio trends indicate periods of increased leverage especially in 2024 and early 2025, though the ratio improved considerably in the latter part of 2025. The fluctuations in debt and capital suggest a dynamic capital structure management approach, likely reflecting responses to external factors and strategic financial adjustments over the five-year period analyzed.

Total debt

The total debt experienced a significant increase from March 31, 2020, reaching a peak around June 30, 2020. Subsequently, the debt levels showed gradual decreases with some fluctuations, generally trending downward from the end of 2021 through early 2025. Notably, there was a moderate rise in total debt during mid-2024 but this was followed by a decline towards the first half of 2025, indicating efforts toward debt reduction over the analyzed period.

Total assets

Total assets also rose sharply between March and June 2020, then demonstrated a fluctuating but overall decreasing trend up to the end of 2021. Starting in 2022, total assets stabilized somewhat with minor variations, followed by a noticeable increase in early 2025. This pattern suggests initial asset growth potentially linked to financial strategies in early 2020, followed by a period of relative asset stability, and a reinvestment or acquisition phase near the end of the period analyzed.

Debt to assets ratio

The debt to assets ratio increased markedly from March 2020 through late 2020, peaking near 0.43. Afterward, the ratio showed a gradual reduction from early 2021 into 2023, reaching as low as approximately 0.34 by early 2025. The brief rebound in the ratio during mid-2024 correlates with the temporary increase in debt, but the overall downward trend indicates an improving leverage position, suggesting enhanced balance sheet strength and potentially reduced financial risk over time.

The analysis of the quarterly financial data reveals several notable trends regarding the company's total assets, shareholders' deficit, and financial leverage over the examined periods.

Total Assets

Total assets exhibit a fluctuating pattern with an overall decline from early 2020 through late 2021. Starting at approximately 143 billion US dollars in March 2020, assets peaked in the subsequent quarter at nearly 163 billion, then gradually decreased to about 138.5 billion by December 2021. Throughout 2022 and into early 2023, total assets remained relatively stable around the 135 to 137 billion range but experienced minor variation each quarter. From mid-2023 onward, the total assets showed moderate volatility, with a noticeable uptick observed in late 2024 and early 2025, reaching over 156 billion US dollars by June 2025, indicating a possible recovery or asset accumulation phase in the most recent periods.

Shareholders’ Deficit

The shareholders’ deficit demonstrates a generally negative trend across the timeline, signaling persistent and large negative equity. The deficit worsened significantly between early 2020 and early 2021, peaking around a negative 18 billion US dollars by December 2020. Following this peak, there was a gradual improvement in the deficit from 2021 to mid-2022, with the figures fluctuating between approximately -15 billion and -18 billion US dollars. However, a setback occurred toward the end of 2022 and throughout most of 2023, with the deficit becoming more negative again, reaching nearly -17 billion. Notably, there are substantial improvements starting from late 2024, where the deficit sharply reduces to around -3.3 billion, suggesting either capital injections, asset revaluations, or improved earnings contributing to stronger equity positions in the most recent quarters.

Financial Leverage

Financial leverage data is not provided in the dataset for any period, thus precluding any analysis or inference regarding changes in the company’s debt-to-equity or other leverage-related ratios.

Overall, the data illustrates a company facing challenges in equity, with significant shareholders’ deficits prevailing during most quarters. Despite this, the stabilization and eventual improvement of total assets and reduction in deficit in the later quarters suggest positive financial developments toward the end of the observed range. The absence of financial leverage figures limits a deeper understanding of the company’s risk profile and capital structure dynamics.

The financial data over the observed periods reveals volatile earnings before interest and tax (EBIT) for the company. EBIT figures show significant fluctuations, with several quarters experiencing negative results, particularly severe in the quarters ending June 30, 2020 (-2870 million USD) and December 31, 2020 (-7927 million USD). However, starting from March 31, 2021, there is a recovery trend with positive EBIT values noted intermittently, such as 107 million USD in March 2021 and 1222 million USD in June 2021. Despite this partial recovery, the EBIT continues to display instability, including occasional substantial negative values in late 2021 and late 2024, indicating recurring operational challenges or external pressures affecting profitability.

Interest and debt expense figures remain relatively stable throughout the periods, ranging mostly between approximately 550 million USD and 750 million USD per quarter. There is no evident upward or downward trend, suggesting a consistent level of debt servicing cost for the company during the timeframe examined.

The interest coverage ratio, which measures the ability to cover interest expenses with earnings before interest and taxes, illustrates a persistently weak capacity to service debt interest through operating earnings. The ratio is negative in all available periods until early 2024, indicating EBIT does not cover interest expenses and implying operating losses relative to interest obligations. Slight improvements are seen around the first half of 2024, where the ratio briefly turns positive but remains below 1, signifying earnings remain insufficient to fully cover interest expenses. Subsequently, the ratio declines again, underscoring continued financial pressure.

Overall, the earnings data indicates an ongoing struggle to maintain profitability, with significant fluctuations in EBIT and consistently high interest expenses. The unstable interest coverage ratio highlights sustained challenges in meeting debt costs through operations alone, signaling potential liquidity risks or the need for operational restructuring to improve financial health.