Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Boeing Co., profitability 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).
The financial data reveals fluctuating profitability margins for the periods analyzed. The gross profit margin shows an initial increase from a negative value of -9.78% in 2020 to positive territory, peaking at 9.93% in 2023, before declining sharply to -2.99% in 2024. This pattern suggests a temporary improvement in cost management or pricing strategies which was not sustained in the latest period.
Operating profit margin follows a similar trend but remains negative throughout all periods, indicating persistent challenges in controlling operating expenses or achieving operational efficiency. The margin improves from -21.95% in 2020 to -0.99% in 2023, which signifies reduced operating losses, but sharply deteriorates again to -16.10% in 2024. This volatility may point to inconsistent operational performance or external factors affecting operating costs and revenues.
The net profit margin mirrors the trends of both gross and operating margins, remaining negative across all years. It improves from -20.42% in 2020 to -2.86% in 2023, suggesting a reduction in overall losses, but then worsens to -17.77% in 2024. This decline could be influenced by increased expenses, non-operating losses, or other factors impacting the bottom line negatively in the most recent period.
Return on assets (ROA) also indicates ongoing profitability difficulties. Though there is an improvement from -7.8% in 2020 to -1.62% in 2023, the metric declines again to -7.56% in 2024. The pattern is consistent with other profitability measures, showing temporary recovery followed by regression.
Return on equity (ROE) data is unavailable for all periods, limiting the ability to assess shareholder returns and how efficiently equity capital is being utilized.
Overall, the trends suggest that the company experienced some recovery in profitability metrics through 2023 but faced renewed financial pressures in 2024, resulting in deteriorated margins and asset returns. The consistent negative margins highlight ongoing operational and financial challenges to achieving sustained profitability.
Return on Sales
Return on Investment
Gross Profit Margin
Boeing Co., gross profit margin 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) | ||||||
| Gross profit (loss) | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
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
Gross profit margin = 100 × Gross profit (loss) ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Gross Profit (Loss)
- The gross profit exhibited significant fluctuations over the five-year period. It began with a substantial loss of US$ -5,685 million at the end of 2020, reflecting challenging financial conditions during that year. This was followed by a recovery phase with gross profit turning positive in 2021 and continuing to improve slightly in 2022, reaching US$ 3,502 million. The year 2023 marked a notable increase to US$ 7,724 million, the highest value in the dataset, indicating enhanced operational efficiency or revenue quality. However, 2024 saw a reversal with a gross loss of US$ -1,991 million, suggesting emerging difficulties or increased costs that surpassed revenues at the gross profit level.
- Revenues
- Revenue trends showed steady growth from US$ 58,158 million at the end of 2020 to US$ 77,794 million in 2023, indicating consistent expansion in sales or service delivery. However, in 2024, revenues declined to US$ 66,517 million, representing a notable decrease compared to the previous year. Despite growth over the earlier years, the decline in the final year potentially signals market challenges, reduced demand, or competitive pressures.
- Gross Profit Margin
- The gross profit margin mirrored the fluctuations observed in gross profit. Starting with a negative margin of -9.78% at the end of 2020, it moved to positive territory in 2021 at 4.84%, with minor improvement in 2022 to 5.26%. The margin peaked in 2023 at 9.93%, reflecting improved cost control or pricing strategies. Nonetheless, it decreased sharply in 2024, falling to -2.99%, which suggests that cost or expense increases outpaced revenue, negatively impacting profitability.
Operating Profit Margin
Boeing Co., operating profit margin 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) | ||||||
| Loss from operations | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Capital Goods | ||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Loss from operations ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenues demonstrate a generally positive trajectory from 2020 through 2023, increasing from approximately 58.2 billion US dollars in 2020 to a peak of nearly 77.8 billion US dollars in 2023. However, a decline is observed in 2024, with revenues falling back to approximately 66.5 billion US dollars. This indicates a recovery and growth phase post-2020 followed by a setback or market challenge in the latest year.
- Loss from Operations
- The loss from operations shows substantial volatility. In 2020, the loss was severe at approximately 12.8 billion US dollars, then it was significantly reduced to around 2.9 billion in 2021, signaling effective cost controls or operational improvements. Losses increased again in 2022 to about 3.5 billion and decreased markedly in 2023 to under 0.8 billion, suggesting better operational efficiency or improved conditions. However, the loss worsens dramatically in 2024, increasing to approximately 10.7 billion US dollars, which could indicate operational challenges or extraordinary expenses impacting profitability.
- Operating Profit Margin
- The operating profit margin follows a similar pattern to the operational losses, starting from a deeply negative margin of -21.95% in 2020. It improves steadily to around -0.99% in 2023, nearly achieving break-even operational performance. In contrast, 2024 sees a sharp deterioration in the margin to -16.1%, highlighting considerable operational difficulties or decreased efficiency during that year.
- Summary of Insights
- The data depicts a company struggling with operational profitability throughout the five-year period, with significant losses in the first and last years. The middle years indicate attempts at recovery and operational stabilization, reflected by improved margins and reduced losses alongside revenue growth. The deterioration in 2024 suggests external pressures or internal disruptions reversing previous improvements. Further analysis into cost structures, market conditions, and one-time events of 2024 would be necessary to clarify the causes behind this decline.
Net Profit Margin
Boeing Co., net profit margin 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 | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Capital Goods | ||||||
| Net Profit Margin, 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
Net profit margin = 100 × Net loss attributable to Boeing Shareholders ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues demonstrated an overall upward trend from 2020 through 2023, increasing from 58,158 million USD to 77,794 million USD. However, a decline is observed in 2024, with revenues falling to 66,517 million USD. This pattern indicates growth for four consecutive years followed by a notable contraction in the final year presented.
- Net Loss Attributable to Boeing Shareholders
- The net loss figures show significant volatility over the period. The highest loss occurred in 2020 at 11,873 million USD. This was followed by a marked reduction in losses through 2021 to 2023, reaching a low point of 2,222 million USD in 2023. Nonetheless, a sharp increase in net loss is evident in 2024, rising again to 11,817 million USD. This pattern suggests substantial improvement after 2020, but a reversal back to elevated losses by 2024.
- Net Profit Margin
- The net profit margin data aligns with the loss trends, starting at a deeply negative -20.42% in 2020. The margin improved progressively over the next three years, reducing the negative impact to -2.86% by 2023. Despite this improvement, the margin sharply deteriorated in 2024, declining to -17.77%. This volatility highlights challenges in profitability consistency, with a brief recovery period before a significant downturn.
- Summary of Financial Trends
- The data reflects a period of recovery and growth from 2020 through 2023 characterized by rising revenues and improving profitability margins, alongside decreasing net losses. However, the year 2024 shows a regression to conditions similar to those in 2020, with reduced revenues, increased net losses, and more negative profit margins. This indicates underlying challenges that impacted financial performance negatively after a period of improvement.
Return on Equity (ROE)
Boeing Co., ROE 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 | ||||||
| Shareholders’ deficit | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| ROE, Sector | ||||||
| Capital Goods | ||||||
| ROE, 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
ROE = 100 × Net loss attributable to Boeing Shareholders ÷ Shareholders’ deficit
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data indicates significant fluctuations in Boeing Co.'s net loss attributable to shareholders over the analyzed period. The net loss was extremely high at -11,873 million US dollars in 2020, then decreased substantially to -4,202 million in 2021, remaining relatively stable with a slight increase to -4,935 million in 2022. The loss further decreased to -2,222 million in 2023, suggesting some improvement in profitability or expense management. However, in 2024, the net loss surged back to -11,817 million, almost returning to the 2020 level, which indicates a renewed or intensified period of financial challenges.
Regarding shareholders' deficit, the data shows a consistently negative position through the years, highlighting persistent equity challenges. The deficit was -18,316 million US dollars at the end of 2020, improving marginally to -14,999 million in 2021. It then experienced a slight worsening to -15,883 million in 2022 and further declined to -17,233 million in 2023. Notably, in 2024, the shareholders' deficit improved significantly, dropping to -3,908 million, which may reflect capital restructuring, asset revaluation, or other financial actions that positively affected the equity base.
The absence of data for Return on Equity (ROE) suggests either that the metric was not calculable due to negative equity values or it was not reported. The consistent shareholders' deficit and substantial net losses likely complicate the calculation and meaningful analysis of ROE during this period.
Overall, the trend reveals some periods of financial relief in 2021 through 2023, followed by a sharp deterioration in net losses in 2024, contrasting with a notable equity base recovery during the same year. This pattern indicates volatility in the company’s financial performance and equity position.
Return on Assets (ROA)
Boeing Co., ROA 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 | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| ROA, Sector | ||||||
| Capital Goods | ||||||
| ROA, 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
ROA = 100 × Net loss attributable to Boeing Shareholders ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The analysis of the financial performance over the five-year period reveals several notable trends. The net loss attributable to shareholders exhibits considerable fluctuations, with the largest loss recorded in 2020, followed by a significant reduction in losses during 2021, 2022, and 2023. However, in 2024, the net loss sharply increased again, nearly returning to the 2020 magnitude.
Total assets initially declined from 2020 through 2023, indicating a possible contraction or divestment phase. This trend reversed in 2024, with total assets increasing significantly to a level exceeding that at the beginning of the period.
The return on assets (ROA) metric, which measures profitability relative to assets, mirrors the pattern observed in net loss. It remained negative throughout the period, improving in 2021 and 2023 but worsening significantly in 2020 and then again in 2024. The improvement in ROA from 2020 to 2023 suggests a gradual recovery in operational efficiency or profitability, but the decline in 2024 signals potential challenges or setbacks during that year.
- Net Loss Attributable to Shareholders
- Large initial loss in 2020 followed by a marked reduction over the next three years, with a sharp increase again in 2024.
- Total Assets
- Gradual decrease in assets from 2020 through 2023, followed by a substantial increase in 2024 surpassing the initial value.
- Return on Assets (ROA)
- Negative ROA throughout, indicating losses relative to asset base; improvement seen mid-period with a decline again in the final year.
Overall, the data indicates a period marked by financial instability and losses, an intermediate phase of partial recovery, and a return to significant losses in the most recent year analyzed. Asset levels reflect adjustments in the company's asset base, potentially aligned with strategic or operational changes. The negative profitability metrics warrant attention to underlying operational or market factors influencing the performance.