Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
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Solvency Ratios (Summary)
Boeing Co., solvency ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
- Debt to Capital Ratios
- The debt to capital ratio shows a fluctuating pattern from 2020 through 2024. Initially, it decreased slightly from 1.4 in 2020 to 1.35 in 2021, followed by a minor increase to 1.39 in 2022. Subsequently, the ratio rose more noticeably to 1.49 in 2023 before declining sharply to 1.08 in 2024. Including operating lease liabilities, the trend is very similar, indicating lease obligations do not substantially alter the leverage profile. This suggests a moderate variability in the company's reliance on debt relative to its capital base over this period, with a significant deleveraging event occurring in the final year.
- Debt to Assets Ratios
- The debt to assets ratio remained stable at approximately 0.42 from 2020 to 2022, indicating that around 42% of the company's assets were financed through debt during those years. In 2023, the ratio decreased to 0.38, and then further declined to 0.34 in 2024. When considering operating lease liabilities, a similar trend is observed, with slightly higher ratios but the same downward movement. This decline points toward a reduction in debt funding relative to total assets, suggesting improved asset financing structure or asset growth not matched by debt increases.
- Interest Coverage Ratio
- The interest coverage ratio remains negative or near zero through 2020 to 2024, reflecting ongoing challenges in generating sufficient earnings to cover interest expenses. The ratio improves slightly from -5.71 in 2020 to -0.88 in 2021, then remains negative at -0.98 for 2022. A brief positive turn to 0.18 occurs in 2023, but it drops back to -3.48 in 2024. This pattern highlights continued earnings volatility and insufficient operating income to reliably cover interest obligations throughout the analyzed period.
- Fixed Charge Coverage Ratio
- Similar to interest coverage, the fixed charge coverage ratio is consistently negative or marginally positive, showing difficulties in covering fixed financial obligations. It improves from -4.75 in 2020 to -0.64 in 2021 and remains near that level at -0.7 in 2022. A small positive coverage of 0.31 appears in 2023, followed by a decline to -2.69 in 2024. These fluctuations indicate the company struggles to consistently meet fixed charges from earnings, which may suggest constraints on financial flexibility.
Debt Ratios
Coverage Ratios
Debt to Equity
Boeing Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | ||||||
| Long-term debt, excluding current portion | ||||||
| Total debt | ||||||
| Shareholders’ deficit | ||||||
| Solvency Ratio | ||||||
| Debt to equity1 | ||||||
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Equity, Sector | ||||||
| Capital Goods | ||||||
| Debt to Equity, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ deficit
= ÷ =
2 Click competitor name to see calculations.
The data indicates a gradual decrease in total debt from 2020 through 2023, followed by a slight increase in 2024. Specifically, total debt declined from $63,583 million in 2020 to $52,307 million in 2023, before rising to $53,864 million in 2024. This pattern suggests an overall reduction in leverage over the four-year period, with a minor uptick in the final year.
Regarding shareholders’ deficit, there is a notable improvement over the period analyzed. The deficit decreased from -$18,316 million in 2020 to -$3,908 million in 2024, signaling enhanced shareholder equity positions despite remaining negative. This trend reflects a reduction in accumulated losses or an improvement in net assets, contributing to a stronger balance sheet.
The debt to equity ratio is not provided but can be expected to improve owing to the simultaneous reduction in total debt and considerable decrease in shareholders’ deficit. This would generally indicate an improving solvency condition and possibly a more favorable risk profile for creditors and investors.
Debt to Equity (including Operating Lease Liability)
Boeing Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | ||||||
| Long-term debt, excluding current portion | ||||||
| Total debt | ||||||
| Current portion of operating lease liabilities | ||||||
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | ||||||
| Total debt (including operating lease liability) | ||||||
| Shareholders’ deficit | ||||||
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | ||||||
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ deficit
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates several notable trends over the five-year period examined.
- Total debt (including operating lease liability)
- The total debt shows a generally declining trend from 64,935 million USD at the end of 2020 to 54,121 million USD by the end of 2023, representing a reduction of approximately 10,814 million USD. However, in 2024, there is a slight increase to 55,958 million USD. This overall decreasing pattern suggests efforts to deleverage or reduce total liabilities, although the uptick in the final year may indicate either increased borrowing or the recognition of additional liabilities.
- Shareholders’ deficit
- The shareholders’ deficit presents a complex trend. Initially, the deficit decreases from -18,316 million USD in 2020 to -14,999 million USD in 2021, indicating an improvement or reduction in negative equity. Nevertheless, the deficit then worsens in 2022 and 2023, increasing to -15,883 million USD and -17,233 million USD respectively. Notably, in 2024, the deficit substantially improves to -3,908 million USD. This significant improvement may reflect either a strong capital injection, earnings recovery, or revaluation adjustments improving equity.
- Debt to equity (including operating lease liability)
- Data for the debt to equity ratio is unavailable for all periods, precluding any analysis of leverage relative to shareholders' equity.
Overall, the data reveals a trend toward reducing total debt with a minor resurgence in the final year. Despite fluctuations, the shareholders’ deficit remains negative throughout but shows a remarkable recovery by the end of the last period. These financial patterns suggest ongoing balance sheet restructuring with potential improvements in equity positions. The absence of the debt to equity ratio limits a more detailed assessment of capital structure leverage.
Debt to Capital
Boeing Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | ||||||
| Long-term debt, excluding current portion | ||||||
| Total debt | ||||||
| Shareholders’ deficit | ||||||
| Total capital | ||||||
| Solvency Ratio | ||||||
| Debt to capital1 | ||||||
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Capital, Sector | ||||||
| Capital Goods | ||||||
| Debt to Capital, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's capital structure over the five-year period.
- Total Debt
- Total debt decreased steadily from 63,583 million US dollars in 2020 to 52,307 million in 2023, representing a consistent reduction each year. However, in 2024 there is a slight uptick to 53,864 million US dollars, indicating a modest increase in debt after several years of decline.
- Total Capital
- Total capital shows a declining trend from 45,267 million US dollars in 2020 down to 35,074 million in 2023, reflecting a reduction in overall capital resources. Contrary to this downward trajectory, 2024 experiences a significant rebound to 49,956 million US dollars, surpassing previous levels and suggesting a substantial infusion or revaluation of capital.
- Debt to Capital Ratio
- The debt to capital ratio decreased from 1.4 in 2020 to 1.35 in 2021, then rose slightly to 1.39 in 2022 and further increased to 1.49 in 2023. This indicates a relative increase in leverage during the latter years, as debt levels remained sizable while capital diminished. In 2024, the ratio declines sharply to 1.08, which correlates with the marked increase in total capital and the slight increase in debt, reflecting a strengthening of the capital base and a reduction of financial leverage.
Overall, the data suggests that the company managed a reduction in absolute debt levels through 2023, but capital resources were also declining, leading to increased leverage ratios. The turnaround in 2024, with capital jumping significantly and the debt to capital ratio improving, points to a strategic capital restructuring or investment activity that improved the company's financial stability and balance sheet strength.
Debt to Capital (including Operating Lease Liability)
Boeing Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | ||||||
| Long-term debt, excluding current portion | ||||||
| Total debt | ||||||
| Current portion of operating lease liabilities | ||||||
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | ||||||
| Total debt (including operating lease liability) | ||||||
| Shareholders’ deficit | ||||||
| Total capital (including operating lease liability) | ||||||
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | ||||||
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited a declining trend from 2020 through 2023, decreasing from 64,935 million US dollars to 54,121 million US dollars. However, in 2024, there was a slight increase in total debt to 55,958 million US dollars. Overall, the debt level has shown a general reduction over the five-year period with a minor reversal in the last year.
- Total Capital (Including Operating Lease Liability)
- Total capital also decreased consistently from 46,619 million US dollars in 2020 to 36,888 million US dollars in 2023. Notably, in 2024, total capital experienced a substantial increase, rising sharply to 52,050 million US dollars. This rebound suggests a significant infusion or accumulation of capital after several years of decline.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio was relatively stable but high from 2020 to 2022, fluctuating slightly around 1.34 to 1.39. In 2023, the ratio increased to 1.47, indicating a rise in leverage relative to available capital during that year. In 2024, the ratio decreased notably to 1.08, reflecting the combined effect of increased capital and a slight increase in debt, thereby indicating an improvement in the capital structure with reduced relative leverage.
- Summary and Insights
- The data reveals a pattern of deleveraging from 2020 to 2023, with both total debt and total capital declining, but the decline in capital outpacing debt reduction, resulting in a higher leverage ratio by 2023. The year 2024 marks a pronounced shift, with total capital rising significantly and the leverage ratio decreasing accordingly. This shift indicates a stronger capital base and improved financial stability despite a small increase in absolute debt levels. The reduction in the debt to capital ratio in 2024 could suggest that the entity has taken steps to strengthen its balance sheet, possibly through capital raising, asset revaluation, or other mechanisms enhancing its financial flexibility.
Debt to Assets
Boeing Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | ||||||
| Long-term debt, excluding current portion | ||||||
| Total debt | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets1 | ||||||
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Assets, Sector | ||||||
| Capital Goods | ||||||
| Debt to Assets, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several important trends in the debt management and asset structure over the analyzed periods.
- Total Debt
- Total debt shows a generally decreasing trend from 63,583 million US dollars at the end of 2020 to 52,307 million US dollars by the end of 2023, indicating a reduction in the company's leverage. However, a slight increase to 53,864 million US dollars occurs in 2024, suggesting a modest uptick in borrowing or liabilities at that time.
- Total Assets
- Total assets declined from 152,136 million US dollars in 2020 to 137,012 million US dollars by 2023, reflecting a contraction in the asset base over these years. Notably, there is a significant rebound in 2024, with assets increasing to 156,363 million US dollars, surpassing the initial value observed in 2020.
- Debt to Assets Ratio
- The debt to assets ratio remains steady at 0.42 from 2020 through 2022, indicating that debt consistently represented about 42% of total assets during that period. In 2023, this ratio decreases to 0.38 and further improves to 0.34 in 2024. This declining ratio suggests improved capital structure and relatively lower financial risk due to reduced leverage compared to assets, particularly in the last two years analyzed.
Overall, the data indicates prudent debt reduction efforts in the initial years accompanied by a shrinking asset base. The subsequent asset base growth in 2024 alongside a lower debt to asset ratio reflects a strategic strengthening of the balance sheet, enhancing financial stability by increasing assets while managing debt levels effectively.
Debt to Assets (including Operating Lease Liability)
Boeing Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt and current portion of long-term debt | ||||||
| Long-term debt, excluding current portion | ||||||
| Total debt | ||||||
| Current portion of operating lease liabilities | ||||||
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | ||||||
| Total debt (including operating lease liability) | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | ||||||
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt shows a declining trend from 64,935 million USD at the end of 2020 to 54,121 million USD by the end of 2023. However, there is a slight increase in 2024 to 55,958 million USD. Overall, the company has managed to reduce its total debt over the recent four-year period before experiencing a minor uptick in the last year.
- Total assets
- Total assets decreased from 152,136 million USD in 2020 to 137,012 million USD in 2023, reflecting a contraction in the asset base during these years. In 2024, total assets rise significantly to 156,363 million USD, surpassing the 2020 level. This suggests a notable asset growth or acquisition activity in the most recent year.
- Debt to assets ratio (including operating lease liability)
- The debt to assets ratio remains stable at 0.43 from 2020 through 2022, indicating a consistent leverage position. The ratio declines to 0.40 in 2023 and further to 0.36 in 2024, highlighting a reduction in leverage relative to the asset base. This trend suggests improved financial stability or a strategic effort to deleverage over recent years, particularly in the last two periods.
Financial Leverage
Boeing Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | ||||||
| Shareholders’ deficit | ||||||
| Solvency Ratio | ||||||
| Financial leverage1 | ||||||
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Financial Leverage, Sector | ||||||
| Capital Goods | ||||||
| Financial Leverage, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ deficit
= ÷ =
2 Click competitor name to see calculations.
The analysis of the provided financial data reveals several key trends in the company's balance sheet items over the five-year period ending in 2024.
- Total assets
- The total assets have exhibited a fluctuating but overall increasing trend. Starting at $152,136 million in 2020, the assets decreased to $138,552 million in 2021 and slightly declined further to $137,100 million in 2022. In 2023, the figure remained nearly stable at $137,012 million but then showed a significant increase to $156,363 million in 2024. This suggests a rebound or expansion in asset base in the most recent year after a period of relative decline and stagnation.
- Shareholders’ deficit
- The shareholders’ deficit, which is reported as a negative number, shows a general trend of improvement over the period. It started at a deficit of -$18,316 million in 2020, improved to -$14,999 million in 2021, but then worsened slightly to -$15,883 million in 2022 and further to -$17,233 million in 2023. However, during 2024 there was a dramatic improvement, with the deficit shrinking to -$3,908 million. This considerable reduction in deficit in the final year indicates a strong movement towards strengthening equity or improving financial health.
- Financial leverage
- No data is provided for financial leverage in any of the periods, so no assessment can be made on this ratio or its implications.
In summary, the data reflect a company that experienced asset contraction and fluctuating equity position through most of the timeframe, followed by a significant recovery in asset levels and a marked reduction in shareholder deficit by the end of 2024. This could indicate recent strategic actions or financial improvements positively impacting the company’s balance sheet. Further details on liabilities or income statement results would be necessary for a more complete financial analysis.
Interest Coverage
Boeing Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net loss attributable to Boeing Shareholders | ||||||
| Add: Net income attributable to noncontrolling interest | ||||||
| Add: Income tax expense | ||||||
| Add: Interest and debt expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Solvency Ratio | ||||||
| Interest coverage1 | ||||||
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Interest Coverage, Sector | ||||||
| Capital Goods | ||||||
| Interest Coverage, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT shows a fluctuating but predominantly negative trend over the period. Starting at -12,320 million US dollars at the end of 2020, there is a significant improvement by 2023 when EBIT turns positive to 454 million US dollars. However, this positive value is short-lived, as the EBIT decreases sharply again to -9,485 million US dollars by the end of 2024. This volatility indicates inconsistent operational performance with a brief recovery followed by a substantial decline.
- Interest and debt expense
- Interest and debt expenses display a relatively stable pattern, ranging between 2,156 million and 2,725 million US dollars. There is a slight upward trend evident, moving from 2,156 million in 2020 to 2,725 million in 2024. The slight increase suggests a gradual rise in borrowing costs or debt levels over the observed timeframe.
- Interest coverage ratio
- The interest coverage ratio remains negative throughout most of the periods, reflecting the company's difficulties in covering interest expenses with EBIT. Beginning at -5.71 in 2020, it improves somewhat in 2023 to a marginally positive 0.18, coinciding with the positive EBIT reported that year. Nonetheless, it deteriorates again to -3.48 by 2024. Overall, the persistently negative ratios indicate ongoing challenges in sustaining earnings sufficient to cover interest obligations.
Fixed Charge Coverage
Boeing Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| U.S. federal statutory tax rate | ||||||
| Selected Financial Data (US$ in millions) | ||||||
| Net loss attributable to Boeing Shareholders | ||||||
| Add: Net income attributable to noncontrolling interest | ||||||
| Add: Income tax expense | ||||||
| Add: Interest and debt expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Add: Operating lease expense | ||||||
| Earnings before fixed charges and tax | ||||||
| Interest and debt expense | ||||||
| Operating lease expense | ||||||
| Mandatory convertible preferred stock dividends accumulated during the period | ||||||
| Mandatory convertible preferred stock dividends accumulated during the period, tax adjustment1 | ||||||
| Mandatory convertible preferred stock dividends accumulated during the period, after tax adjustment | ||||||
| Fixed charges | ||||||
| Solvency Ratio | ||||||
| Fixed charge coverage2 | ||||||
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | ||||||
| Fixed Charge Coverage, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 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)
= ( × ) ÷ (1 − ) =
2 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
3 Click competitor name to see calculations.
The financial data points to significant fluctuations in the company's earnings before fixed charges and tax over the five-year period, accompanied by changes in fixed charges and coverage ratios that reflect evolving financial conditions.
- Earnings Before Fixed Charges and Tax
-
The earnings before fixed charges and tax demonstrate a pronounced volatility. Starting from a substantial negative figure of -11,960 million USD in 2020, the losses markedly decreased to -1,971 million USD in 2021 and remained relatively stable in 2022 at -2,068 million USD. In 2023, the company posted positive earnings of 911 million USD, indicating a temporary improvement in operational profitability before fixed costs. However, this positive momentum was not sustained as the figure sharply declined again to -8,955 million USD in 2024, signaling a resurgence of significant operational losses.
- Fixed Charges
-
The fixed charges exhibited a general upward trend over the observed periods. Beginning at 2,516 million USD in 2020, fixed charges increased to 3,062 million USD in 2021, saw a slight reduction to 2,954 million USD in 2022, and remained fairly stable at 2,916 million USD in 2023. Nevertheless, by 2024, fixed charges rose again to 3,328 million USD, the highest among the years reported, suggesting an increasing burden of fixed financial obligations.
- Fixed Charge Coverage Ratio
-
The fixed charge coverage ratio, which measures the ability to cover fixed charges from operating earnings, remained under significant pressure throughout the period. The ratio was deeply negative at -4.75 in 2020, substantially improving in 2021 to -0.64 and slightly declining to -0.7 in 2022. A positive coverage ratio of 0.31 emerged in 2023, coinciding with the positive earnings before fixed charges and tax, but this improvement was not maintained. In 2024, the ratio deteriorated considerably again to -2.69. Overall, the ratio underscores persistent challenges in covering fixed financial commitments from operating income.
In summary, the analyzed financial metrics point to ongoing volatility in operational performance with only a brief period of positive earnings before fixed charges and tax in 2023. Fixed charges have generally increased, and the company's ability to service these fixed costs from earnings has been weak and unstable, reflecting material financial stress during most of the timeframe.