Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
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Profitability Ratios (Summary)
Boeing Co., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability metrics demonstrate a period of significant fluctuation followed by a potential recovery. Initial values indicate challenges, with negative margins across several key indicators in 2021 and 2022. A notable improvement is observed in 2023, though this is followed by a substantial decline in 2024 before a partial rebound in 2025.
- Gross Profit Margin
- The gross profit margin experienced an increase from 4.84% in 2021 to 5.26% in 2022. This was followed by a considerable jump to 9.93% in 2023, suggesting improved production efficiency or pricing strategies. However, a sharp reversal occurred in 2024, resulting in a negative margin of -2.99%, before a partial recovery to 4.79% in 2025. This volatility warrants further investigation into cost of goods sold and revenue recognition.
- Operating Profit Margin
- The operating profit margin consistently remained negative from 2021 to 2023, starting at -4.66% and reaching -5.33% in 2022 before slightly improving to -0.99% in 2023. A significant deterioration occurred in 2024, with the margin plummeting to -16.10%, indicating substantial issues with operational efficiency or increased operating expenses. A positive margin of 4.79% is recorded in 2025, suggesting corrective actions may be taking effect.
- Net Profit Margin
- Similar to the operating margin, the net profit margin was negative in 2021, 2022, and 2023, at -6.75%, -7.41%, and -2.86% respectively. The margin experienced a dramatic decline in 2024, reaching -17.77%, before a substantial increase to 2.50% in 2025. This suggests a significant impact from non-operating items or a change in the effective tax rate in 2024, followed by a positive shift in 2025.
- Return on Equity (ROE)
- Return on equity figures are unavailable for 2021, 2022, 2023, and 2024. A substantial ROE of 40.98% is reported for 2025, indicating a significant return generated for shareholders during that period. The absence of prior year figures limits the ability to assess the trend and sustainability of this performance.
- Return on Assets (ROA)
- The return on assets was negative from 2021 to 2024, starting at -3.03% and reaching a low of -7.56% in 2024. This indicates the company was not effectively utilizing its assets to generate profit during this period. A positive ROA of 1.33% is observed in 2025, suggesting improved asset utilization and profitability.
Overall, the period under review demonstrates considerable volatility in profitability. The substantial negative margins in 2024 represent a critical low point, followed by a notable, though incomplete, recovery in 2025. Further analysis is required to understand the underlying drivers of these fluctuations and assess the sustainability of the improvements observed in the most recent year.
Return on Sales
Return on Investment
Gross Profit Margin
Boeing Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
1 2025 Calculation
Gross profit margin = 100 × Gross profit (loss) ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited significant fluctuation over the five-year period. Initial increases were followed by a substantial decline and subsequent partial recovery.
- Gross Profit Margin - Overall Trend
- The gross profit margin began at 4.84% in 2021, increasing to 5.26% in 2022. A marked improvement occurred in 2023, with the margin reaching 9.93%. However, 2024 saw a dramatic reversal, resulting in a negative gross profit margin of -2.99%. The margin partially recovered in 2025, reaching 4.79%.
- Gross Profit and Revenue Relationship
- From 2021 to 2023, both gross profit and revenues increased. The larger percentage increase in gross profit relative to revenue contributed to the rising gross profit margin during this period. In 2024, revenues decreased while gross profit became a loss, leading to the negative margin. The return to positive gross profit in 2025, coupled with increased revenues, resulted in a margin close to the initial 2021 level.
- Volatility
- The gross profit margin demonstrates considerable volatility. The swing from a positive 9.93% in 2023 to a negative -2.99% in 2024 is particularly noteworthy. This suggests significant sensitivity to changes in revenue and/or the cost of goods sold. The relatively small margin in 2025 indicates that while the situation improved, it did not return to the levels seen in 2023.
The substantial changes in gross profit margin warrant further investigation into the underlying factors affecting both revenue and the cost of goods sold during each period, particularly the events leading to the negative margin in 2024.
Operating Profit Margin
Boeing Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings (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: 2025-12-31), 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).
1 2025 Calculation
Operating profit margin = 100 × Earnings (loss) from operations ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited significant volatility over the five-year period. Initially negative, it improved substantially before declining sharply, ultimately recovering to positive territory.
- Operating Profit Margin Trend
- In 2021, the operating profit margin was -4.66%. This negative margin persisted in 2022, decreasing to -5.33%. A notable improvement occurred in 2023, with the margin increasing to -0.99%, indicating a reduction in operational losses. However, 2024 saw a dramatic decline, with the operating profit margin falling to -16.10%, representing a substantial operational loss. Finally, 2025 demonstrated a strong recovery, with the operating profit margin rising to 4.79%, signifying a return to profitability.
The fluctuations in operating profit margin correlate with the reported earnings from operations. The largest negative margin in 2024 aligns with the most significant loss from operations recorded during that year. Conversely, the positive margin in 2025 corresponds with positive earnings from operations.
- Revenue Relationship
- Revenues generally increased over the period, with the exception of a decrease from 2023 to 2024. Despite the revenue increase from 2021 to 2023, the operating profit margin remained negative, suggesting that cost of goods sold and operating expenses were increasing at a faster rate than revenue. The substantial revenue decline in 2024, coupled with a significant increase in operational losses, indicates a considerable challenge in maintaining profitability during that period. The revenue increase in 2025, alongside a return to positive operating profit, suggests improved operational efficiency or cost management.
The substantial swing in the operating profit margin highlights the sensitivity of profitability to changes in revenues and operational performance. The company experienced a period of significant operational challenges, culminating in a substantial loss in 2024, but demonstrated a strong recovery in 2025.
Net Profit Margin
Boeing Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (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: 2025-12-31), 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).
1 2025 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to Boeing shareholders ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited significant fluctuations over the five-year period. Initially negative, it experienced a substantial decline before recovering to positive territory.
- Net Profit Margin Trend
- In 2021, the net profit margin was -6.75%. This indicates a net loss relative to revenue. The margin deteriorated further in 2022, reaching -7.41%, signifying a widening loss. A modest improvement was observed in 2023, with the net profit margin increasing to -2.86%, suggesting a reduction in the net loss. However, 2024 saw a dramatic worsening, with the net profit margin plummeting to -17.77%, representing a substantial net loss. Finally, 2025 demonstrated a significant turnaround, with the net profit margin reaching 2.50%, indicating a return to profitability.
The movement in net earnings attributable to Boeing shareholders closely mirrors the net profit margin trend. Declining earnings from 2021 to 2022 and 2024 correlate with the negative margins, while the positive earnings in 2025 align with the positive margin achieved in that year.
- Revenue and Net Profit Margin Relationship
- Revenues generally increased over the period, rising from US$62,286 million in 2021 to US$89,463 million in 2025. However, revenue growth did not consistently translate into improved profitability. Despite revenue increasing from 2021 to 2022, the net profit margin worsened. Similarly, while revenue increased significantly from 2022 to 2023, the improvement in the net profit margin was limited. The decrease in revenue from 2023 to 2024 coincided with a substantial decline in the net profit margin. The substantial revenue increase in 2025 was accompanied by a return to positive net profit margin.
The volatility in the net profit margin suggests the company’s profitability is sensitive to changes in revenues and/or costs. The significant loss in 2024, despite a relatively high revenue level, indicates substantial cost pressures or other factors negatively impacting earnings.
Return on Equity (ROE)
Boeing Co., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to Boeing shareholders | ||||||
| Shareholders’ equity (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: 2025-12-31), 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).
1 2025 Calculation
ROE = 100 × Net earnings (loss) attributable to Boeing shareholders ÷ Shareholders’ equity (deficit)
= 100 × ÷ =
2 Click competitor name to see calculations.
The period under review demonstrates significant volatility in both net earnings attributable to Boeing shareholders and shareholders’ equity. This volatility directly impacts the return on equity (ROE). Initial years exhibit net losses and negative shareholders’ equity, precluding a meaningful ROE calculation. A substantial shift occurs in the final year, with positive net earnings and shareholders’ equity resulting in a calculated ROE.
- Net Earnings
- Net earnings attributable to Boeing shareholders consistently reflect losses from 2021 through 2023. The magnitude of these losses increases from US$4.202 billion in 2021 to US$4.935 billion in 2022, before decreasing slightly to US$2.222 billion in 2023. A dramatic loss of US$11.817 billion is recorded in 2024, followed by a significant turnaround to a profit of US$2.235 billion in 2025.
- Shareholders’ Equity
- Shareholders’ equity is negative throughout the period from 2021 to 2024, indicating an accumulated deficit. The deficit deepens from US$14.999 billion in 2021 to US$17.233 billion in 2023, then experiences a substantial reduction to a deficit of US$3.908 billion in 2024. In 2025, shareholders’ equity becomes positive, reaching US$5.454 billion.
- Return on Equity
- Due to the negative shareholders’ equity in the initial years, ROE is not calculable. A substantial ROE of 40.98% is reported for 2025. This high value is a direct consequence of the shift to positive net earnings combined with the recovery of shareholders’ equity from a deficit position. The significant change in ROE from undefined to 40.98% highlights the substantial improvement in financial performance during the final year of the period.
The transition from consistent losses and negative equity to profitability and positive equity in 2025 represents a critical turning point. The 2025 ROE, while high, should be considered in the context of the preceding years’ financial difficulties and the base effect of recovering from a deficit.
Return on Assets (ROA)
Boeing Co., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (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: 2025-12-31), 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).
1 2025 Calculation
ROA = 100 × Net earnings (loss) attributable to Boeing shareholders ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited significant fluctuations over the five-year period. Initially negative, the ROA trended downward before recovering to positive territory in the final year examined. This analysis details the observed patterns and potential implications.
- Overall Trend
- The ROA demonstrated a clear progression from negative values to a positive value. The initial three years showed consistent negative ROA, indicating that the company generated insufficient earnings relative to its asset base. However, a substantial improvement occurred in the final two years, culminating in a positive ROA.
- Year-over-Year Changes
- From 2021 to 2022, the ROA worsened from -3.03% to -3.60%, suggesting a decline in profitability relative to assets. A modest improvement was observed from 2022 to 2023, with the ROA increasing to -1.62%. However, the most significant change occurred between 2023 and 2024, where the ROA decreased sharply to -7.56%, indicating a substantial deterioration in asset utilization and profitability. Finally, a dramatic turnaround occurred from 2024 to 2025, with the ROA rising to 1.33%, signifying a considerable enhancement in the company’s ability to generate earnings from its assets.
- Relationship to Net Earnings
- The ROA’s trajectory closely mirrors the trend in net earnings attributable to Boeing shareholders. The negative ROA values in the earlier years correspond with substantial net losses. The significant decline in ROA in 2024 aligns with the largest net loss recorded during the period. Conversely, the positive ROA in 2025 is directly linked to the reported net earnings for that year.
- Relationship to Total Assets
- Total assets remained relatively stable between 2021 and 2023, fluctuating within a narrow range. A noticeable increase in total assets occurred between 2023 and 2024, and continued into 2025. The substantial ROA improvement in 2025 occurred alongside this asset increase, suggesting that the company effectively deployed these additional assets to generate positive earnings.
In conclusion, the ROA experienced a volatile period, characterized by initial losses, a significant downturn, and a subsequent recovery. The ultimate positive ROA in 2025 indicates a potential shift towards improved profitability and asset utilization, but the preceding negative trends warrant continued monitoring.