Boeing Co. (NYSE:BA)
Analysis of Profitability Ratios
Beginner level
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Boeing Co., profitability ratios
Based on: 10-K (filing date: 2020-01-31), 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Boeing Co.’s gross profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Boeing Co.’s operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Boeing Co.’s net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Boeing Co.’s ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Boeing Co.’s ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Gross Profit Margin
Boeing Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 4,466 | 19,637 | 17,326 | 13,781 | 14,026 | |
| Revenues | 76,559 | 101,127 | 93,392 | 94,571 | 96,114 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 5.83% | 19.42% | 18.55% | 14.57% | 14.59% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| General Dynamics Corp. | 17.94% | 18.55% | 19.98% | 19.93% | 19.48% | |
| Lockheed Martin Corp. | 13.99% | 13.53% | 10.87% | 10.71% | 11.27% | |
| Northrop Grumman Corp. | 21.45% | 22.57% | 23.07% | 23.57% | 23.98% | |
| Raytheon Co. | 26.61% | 27.66% | 24.74% | 25.44% | 24.40% | |
| United Technologies Corp. | 25.93% | 24.84% | 26.55% | 27.57% | 27.93% | |
Based on: 10-K (filing date: 2020-01-31), 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).
1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 4,466 ÷ 76,559 = 5.83%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Boeing Co.’s gross profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Operating Profit Margin
Boeing Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings (loss) from operations | (1,975) | 11,987 | 10,278 | 5,834 | 7,443 | |
| Revenues | 76,559 | 101,127 | 93,392 | 94,571 | 96,114 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -2.58% | 11.85% | 11.01% | 6.17% | 7.74% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| General Dynamics Corp. | 11.81% | 12.31% | 13.49% | 13.74% | 13.28% | |
| Lockheed Martin Corp. | 14.29% | 13.64% | 11.60% | 11.74% | 11.78% | |
| Northrop Grumman Corp. | 11.73% | 12.56% | 12.79% | 13.03% | 13.07% | |
| Raytheon Co. | 16.36% | 16.77% | 13.09% | 13.46% | 12.96% | |
| United Technologies Corp. | 11.64% | 12.86% | 14.49% | 14.28% | 13.00% | |
| Operating Profit Margin, Sector | ||||||
| Aerospace & Defense | 9.16% | 12.92% | 12.45% | 10.86% | 11.00% | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 13.15% | 14.04% | 13.70% | 12.78% | 13.66% | |
Based on: 10-K (filing date: 2020-01-31), 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).
1 2019 Calculation
Operating profit margin = 100 × Earnings (loss) from operations ÷ Revenues
= 100 × -1,975 ÷ 76,559 = -2.58%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Boeing Co.’s operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Net Profit Margin
Boeing Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) related to parent | (636) | 10,460 | 8,197 | 4,895 | 5,176 | |
| Revenues | 76,559 | 101,127 | 93,392 | 94,571 | 96,114 | |
| Profitability Ratio | ||||||
| Net profit margin1 | -0.83% | 10.34% | 8.78% | 5.18% | 5.39% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| General Dynamics Corp. | 8.85% | 9.24% | 9.40% | 9.42% | 9.42% | |
| Lockheed Martin Corp. | 10.42% | 9.39% | 3.92% | 11.22% | 7.81% | |
| Northrop Grumman Corp. | 6.64% | 10.73% | 7.81% | 8.98% | 8.46% | |
| Raytheon Co. | 11.46% | 10.75% | 7.98% | 9.19% | 8.92% | |
| United Technologies Corp. | 7.19% | 7.92% | 7.61% | 8.83% | 13.56% | |
| Net Profit Margin, Sector | ||||||
| Aerospace & Defense | 6.40% | 9.61% | 7.58% | 8.11% | 8.47% | |
| Net Profit Margin, Industry | ||||||
| Industrials | 7.57% | 6.94% | 7.55% | 8.82% | 7.36% | |
Based on: 10-K (filing date: 2020-01-31), 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).
1 2019 Calculation
Net profit margin = 100 × Net earnings (loss) related to parent ÷ Revenues
= 100 × -636 ÷ 76,559 = -0.83%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Boeing Co.’s net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Return on Equity (ROE)
Boeing Co., ROE calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) related to parent | (636) | 10,460 | 8,197 | 4,895 | 5,176 | |
| Shareholders’ equity | (8,617) | 339 | 355 | 817 | 6,335 | |
| Profitability Ratio | ||||||
| ROE1 | — | 3,085.55% | 2,309.01% | 599.14% | 81.70% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| General Dynamics Corp. | 25.66% | 28.51% | 25.47% | 26.92% | 27.61% | |
| Lockheed Martin Corp. | 199.23% | 361.98% | — | 350.89% | 116.40% | |
| Northrop Grumman Corp. | 25.49% | 39.44% | 28.59% | 41.83% | 36.04% | |
| Raytheon Co. | 27.35% | 25.36% | 20.32% | 21.97% | 20.48% | |
| United Technologies Corp. | 13.25% | 13.70% | 15.37% | 18.33% | 27.81% | |
| ROE, Sector | ||||||
| Aerospace & Defense | 28.50% | 42.28% | 37.59% | 40.24% | 37.07% | |
| ROE, Industry | ||||||
| Industrials | 24.02% | 22.77% | 21.24% | 24.02% | 17.80% | |
Based on: 10-K (filing date: 2020-01-31), 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).
1 2019 Calculation
ROE = 100 × Net earnings (loss) related to parent ÷ Shareholders’ equity
= 100 × -636 ÷ -8,617 = —
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Boeing Co.’s ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Return on Assets (ROA)
Boeing Co., ROA calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) related to parent | (636) | 10,460 | 8,197 | 4,895 | 5,176 | |
| Total assets | 133,625 | 117,359 | 92,333 | 89,997 | 94,408 | |
| Profitability Ratio | ||||||
| ROA1 | -0.48% | 8.91% | 8.88% | 5.44% | 5.48% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| General Dynamics Corp. | 7.13% | 7.37% | 8.31% | 8.99% | 9.27% | |
| Lockheed Martin Corp. | 13.11% | 11.24% | 4.30% | 11.09% | 7.34% | |
| Northrop Grumman Corp. | 5.47% | 8.58% | 5.77% | 8.59% | 8.14% | |
| Raytheon Co. | 9.67% | 9.13% | 6.56% | 7.36% | 7.08% | |
| United Technologies Corp. | 3.96% | 3.93% | 4.70% | 5.64% | 8.70% | |
| ROA, Sector | ||||||
| Aerospace & Defense | 4.54% | 7.36% | 6.45% | 7.16% | 7.39% | |
| ROA, Industry | ||||||
| Industrials | 4.80% | 4.68% | 4.77% | 5.51% | 4.25% | |
Based on: 10-K (filing date: 2020-01-31), 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).
1 2019 Calculation
ROA = 100 × Net earnings (loss) related to parent ÷ Total assets
= 100 × -636 ÷ 133,625 = -0.48%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Boeing Co.’s ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |