Boeing Co. (NYSE:BA)

Revenues

The revenues show a general upward trend from 2020 through 2023, increasing from 16,423 million US dollars to a peak of 33,901 million US dollars. However, in 2024, there is a noticeable decline to 22,861 million US dollars, indicating a potential contraction after several years of growth.

Segment Operating Earnings (Loss)

The segment operating earnings (loss) reflect a considerable improvement from 2020 to 2023, with losses decreasing from -13,784 million US dollars to -1,635 million US dollars. Despite this positive trend, the data for 2024 reveals a significant deterioration, with operating losses increasing sharply to -7,969 million US dollars, reversing much of the prior improvements.

Segment Profit Margin

The segment profit margin follows a similar pattern to the operating earnings. Initially, it improves dramatically from -83.93% in 2020 to -4.82% in 2023, signifying enhanced operational efficiency and profitability. Nonetheless, in 2024, the profit margin plunges to -34.86%, indicating a material decline in profitability consistent with the increased operating losses and reduced revenues observed in that year.

Operating Earnings (Loss)

The segment operating earnings demonstrated a decline over the five-year period. Starting at 1,539 million USD in 2020 and maintaining a similar level in 2021 with 1,544 million USD, the earnings then shifted into losses beginning in 2022, with a significant loss of 3,544 million USD. This negative trend continued with losses of 1,764 million USD in 2023 and further deepened in 2024 to 5,413 million USD. The data indicates a severe deterioration in operating profitability within the segment over this period.

Revenues

Revenues showed moderate variability with an initial increase from 26,257 million USD in 2020 to 26,540 million USD in 2021. Following that, revenues declined to 23,162 million USD in 2022. There was a partial recovery in 2023 to 24,933 million USD, but revenues decreased again in 2024 to 23,918 million USD. Overall, revenues did not demonstrate consistent growth and remained below the 2020-2021 levels after 2021, suggesting pressures on sales or contract volumes.

Segment Profit Margin

The profit margin aligned closely with the operating earnings trend. It remained positive but modest in 2020 (5.86%) and 2021 (5.82%). In 2022, it fell sharply into negative territory at -15.3%, reflecting the substantial operating loss. Although the margin improved slightly in 2023 to -7.07%, it again worsened markedly in 2024 to -22.63%. This pattern underscores the segment’s increased cost pressures or unfavorable operational conditions leading to significant profitability erosion.

Summary Insight

The segment experienced a clear and sustained decline in financial performance from 2022 onwards, marked by escalating operating losses and deteriorating profit margins despite relatively stable but declining revenue levels. The inability to maintain profitability indicates challenges that may include cost management issues, contract pricing pressures, or market environment changes. The partial revenue recovery in 2023 did not translate into improved profitability, highlighting structural or operational difficulties within the segment.

The financial data for the Global Services segment over the five-year period indicates a consistent upward trajectory in both earnings and revenues, accompanied by improving profitability margins.

Segment Operating Earnings (Loss)

Operating earnings experienced a substantial increase from 450 million US dollars in 2020 to 3,618 million US dollars in 2024. This reflects a more than eightfold growth, with particularly strong increases observed in 2021 and continuing through 2024, demonstrating enhanced operational performance and possibly effective cost management or successful business initiatives during this timeframe.

Revenues

Revenues also showed a steady rise, growing from 15,543 million US dollars in 2020 to 19,954 million US dollars by 2024. The year-over-year increments suggest robust demand and expansion within the segment, supporting the increase in operating earnings.

Segment Profit Margin

The profit margin improved markedly from 2.9% in 2020 to 18.13% in 2024. This progression indicates enhanced efficiency or a shift to higher-margin services/products, reflecting the segment's increasing ability to convert revenue into operating profits. The steady growth in margin percentage each year highlights sustained operational improvements and potentially favorable market dynamics.

Overall, the data portrays a segment that has achieved significant financial improvement, with consistent revenue growth, substantial gains in operating earnings, and a strong expansion of profit margins over the five-year span. This pattern evidences a positively evolving business environment and effective management strategies within the Global Services segment.

Segment Operating Earnings (Loss)

The segment operating earnings (loss) exhibit a notable improvement from 2020 to 2023, with losses shrinking from -13,784 million US$ in 2020 to -1,635 million US$ in 2023. However, a reversal is observed in 2024, where the loss substantially increases again to -7,969 million US$. This pattern suggests a period of recovery followed by renewed challenges impacting profitability.

Assets

The asset base of the segment shows a relatively stable trend with slight fluctuations. Assets decreased marginally from 79,951 million US$ in 2020 to 76,825 million US$ in 2022, then stabilized around 77,000 million US$ in 2023. In 2024, assets increased to 84,177 million US$, indicating a significant expansion of resources or investments during the latest period.

Segment Return on Assets (ROA)

The segment's return on assets illustrates a gradual reduction in negative returns from -17.24% in 2020 to -2.12% in 2023, reflecting an improving asset utilization and possibly enhanced operational efficiency over those years. Nonetheless, in 2024, the ROA deteriorates to -9.47%, signaling a decline in profitability relative to the asset base, aligning with the increase in operating losses for the same period.

The segment operating earnings (loss) for the Defense, Space & Security (BDS) reportable segment exhibit significant fluctuations over the five-year period. In 2020 and 2021, the segment achieved positive operating earnings of approximately $1.5 billion, indicating profitable operations. However, starting in 2022, the segment enters a phase of considerable operating losses, with the amount worsening from -$3.5 billion in 2022, to -$1.76 billion in 2023, and further declining to a negative $5.4 billion in 2024. This trend suggests increasing operational challenges or extraordinary expenses impacting the segment's earnings.

Assets within the segment demonstrate a relatively stable but modest upward trajectory over the period. From approximately $14.3 billion in 2020, assets increased slightly in 2021 to nearly $15 billion, saw a marginal decrease in 2022, and then resumed gradual growth through 2023 and 2024, reaching approximately $15.4 billion. This stability in asset base indicates maintained or slightly expanded investment levels despite the operational losses experienced in later years.

The segment return on assets (ROA) mirrors the earnings trend closely and underscores declining profitability in relation to the asset base. The ROA starts positively at 10.8% in 2020 and slightly decreases to 10.31% in 2021. From 2022 onwards, the ROA turns negative, signifying losses despite the asset investment, dropping sharply to -24.57% in 2022, improving slightly but remaining negative at -11.82% in 2023, before declining again to -35.26% in 2024. This pattern indicates increasingly inefficient use of assets to generate earnings.

Overall, the data reveals a segment facing severe profitability challenges starting in 2022, with deteriorating operating earnings and ROA, while asset levels remain fairly consistent with a slight upward trend. This situation may call for a review of operational strategies, cost structures, or market conditions affecting the segment to address the ongoing losses and improve asset utilization efficiency.

Segment operating earnings (loss)

Segment operating earnings demonstrated a strong upward trend over the five-year period. Beginning at $450 million in 2020, earnings increased significantly to $2,017 million by 2021. This growth continued steadily, reaching $2,727 million in 2022, $3,329 million in 2023, and $3,618 million in 2024. The pattern indicates considerable improvement in profitability within the segment year-over-year.

Assets

Assets showed a slight decline from $17,399 million in 2020 to $16,397 million in 2021, and then continued a gradual decrease to $16,149 million in 2022, and $16,193 million in 2023. There was a modest recovery in 2024, with assets increasing to $16,704 million. Overall, assets remained relatively stable during the period, fluctuating within a narrow range, indicating limited growth or contraction in asset base.

Segment ROA (Return on Assets)

The segment’s return on assets exhibited a marked improvement throughout the period. Starting from a low of 2.59% in 2020, ROA improved sharply to 12.3% in 2021, followed by steady increases to 16.89% in 2022, 20.56% in 2023, and 21.66% in 2024. This trend suggests enhanced efficiency in asset utilization and stronger profitability relative to the asset base.

Revenue Trends

The revenue for the segment displayed a consistent increase from 2020 through 2023, rising from $16,423 million in 2020 to a peak of $33,901 million in 2023. However, in 2024, revenue declined significantly to $22,861 million, indicating a reversal of the previous upward trend.

Assets Trends

Total assets for the segment showed a slight decline from $79,951 million in 2020 to $76,825 million in 2022, followed by a modest increase over the next two years, reaching $84,177 million in 2024. The asset base remained relatively stable with minor fluctuations throughout the period.

Segment Asset Turnover Ratio

The segment asset turnover ratio improved steadily from 0.21 in 2020 to a peak of 0.44 in 2023, indicating increasing efficiency in using assets to generate revenue. In 2024, however, the ratio decreased sharply to 0.27, reflecting the impact of the revenue decline despite the increase in asset value.

Summary

The segment experienced strong revenue growth and improved asset utilization efficiency from 2020 through 2023. The decline in revenue and asset turnover ratio in 2024 suggests challenges in maintaining the prior growth momentum, despite an increased asset base. This shift warrants further investigation into underlying factors affecting performance in the most recent year.

The “Defense, Space & Security (BDS)” segment experienced fluctuations in its financial performance and asset utilization over the analyzed five-year period.

Revenues

Revenues showed a generally declining trend. Starting from US$26,257 million in 2020, revenues slightly increased to US$26,540 million in 2021. Thereafter, a marked decrease occurred in 2022, dropping to US$23,162 million. In 2023, revenues partially recovered to US$24,933 million but declined again to US$23,918 million in 2024. Overall, the segment faced a revenue contraction of approximately 9% from 2020 to 2024.

Assets

Segment assets demonstrated moderate growth over the period. Assets increased from US$14,256 million in 2020 to US$15,350 million in 2024, representing a growth of roughly 7.7%. The asset base saw minor fluctuations, with decreases in 2022 followed by recoveries in subsequent years.

Segment Asset Turnover

The segment asset turnover ratio, which measures revenue generated per dollar of assets, declined steadily from 1.84 in 2020 to 1.56 in 2024. This steady decrease reflects less efficient use of assets in generating revenues. The ratio dipped significantly in 2022 to 1.61, coinciding with the sharp revenue drop, and showed slight recovery in 2023 before further decline in 2024.

In summary, the BDS segment experienced revenue pressures in recent years, accompanied by modest growth in asset base. The consistent decline in asset turnover ratio indicates a reduction in operational efficiency in utilizing assets to drive sales. The combination of falling revenues and growing assets suggests changing business dynamics that may warrant strategic review for improving asset utilization and revenue generation.

Revenues

The segment's revenues show a consistent upward trend over the five-year period, increasing from $15,543 million in 2020 to $19,954 million in 2024. This represents a steady growth trajectory, with noticeable year-over-year increments, particularly between 2021 and 2023.

Assets

Assets in the segment exhibit a slight declining trend from $17,399 million in 2020 to $16,149 million in 2022, followed by stabilization and a modest increase to $16,704 million by 2024. The initial decrease and subsequent plateau suggest cautious asset management or divestitures, with a potential repositioning or reinvestment in later years.

Segment Asset Turnover

The segment asset turnover ratio, calculated as revenues divided by assets, improves steadily from 0.89 in 2020 to 1.19 in 2024. This indicates increasing efficiency in the use of assets to generate revenues, with each dollar of assets generating more revenue over time. The most notable improvements occur consistently each year, highlighting enhanced operational effectiveness.

Capital Expenditures

Capital expenditures show a fluctuating but overall increasing trend across the reported periods. Starting at $322 million in 2020, there was a notable decrease in 2021 to $177 million. This was followed by a moderate increase in 2022 to $218 million, then a significant rise in 2023 to $420 million and a further increase to $508 million in 2024, indicating renewed or expanding investments in the segment.

Depreciation and Amortization

Depreciation and amortization expenses have gradually declined over the years. The expense was highest at $625 million in 2020 and steadily decreased each year, reaching $400 million by 2024. This declining trend may reflect aging assets or possibly changes in asset composition or amortization schedules within the segment.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation exhibits a clear upward trajectory. Beginning at 0.52 in 2020, it declined to its lowest point of 0.30 in 2021, then started to climb from 0.39 in 2022 to 0.91 in 2023, and reached 1.27 in 2024. The sharp increase in this ratio during the last two years suggests that new investments are significantly exceeding the depreciated value of existing assets, potentially indicating expansion or modernization efforts.

Overall Insights

The data reveals a strategic shift in capital allocation within the segment, with capital expenditures recovering and then surpassing previous levels after a dip in 2021. Concurrently, the reduction in depreciation expense aligns with asset aging or possibly asset disposals. The increasing capital expenditure to depreciation ratio underscores an intensified investment phase, which may be aimed at enhancing production capacity, updating technology, or renewing the asset base to support future growth.

Capital Expenditures

The capital expenditures in the segment showed a generally upward trend over the five-year period. Starting at 172 million USD in 2020, expenditures increased steadily each year except for a slight decline in 2023, before rising significantly to 296 million USD in 2024. This suggests an increased investment focus in the most recent year.

Depreciation and Amortization

Depreciation and amortization expenses exhibited a decreasing trend over the analyzed timeframe. From 251 million USD in 2020, these expenses gradually declined, with minor fluctuations, reaching 209 million USD by 2024. This decline could be indicative of aging assets or lower capital costs being expensed.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation increased noticeably during the period. Beginning at 0.69 in 2020, it rose steadily and reached 0.88 in 2023, followed by a marked increase to 1.42 in 2024. This significant jump in 2024 implies that capital investments substantially outpaced depreciation that year, signaling potentially aggressive reinvestment or asset base expansion.

The analysis of the annual data for the Global Services segment reveals several notable trends in capital expenditures, depreciation and amortization, and their ratio over the five-year period from 2020 to 2024.

Capital expenditures

Capital expenditures demonstrated variability, initially decreasing from 127 million US dollars in 2020 to 94 million in 2021. Subsequently, there was a moderate recovery with expenditures reaching 130 million in 2022 and maintaining a similar level of 127 million in 2023. A significant increase occurred in 2024, with capital expenditures surging to 212 million, representing the highest level in the observed period.

Depreciation and amortization

Depreciation and amortization expenses showed a declining trend over the period. Starting at 408 million US dollars in 2020, the figure slightly increased to 414 million in 2021 before progressively decreasing to 346 million in 2022, 320 million in 2023, and further down to 304 million in 2024. This downward trend suggests either asset base adjustments or changes in asset composition or accounting policies affecting amortization rates.

Segment capital expenditures to depreciation ratio

The ratio of capital expenditures to depreciation exhibited a declining trend in the early years, from 0.31 in 2020 to 0.23 in 2021, indicating capital spending was low relative to the expense of asset consumption. However, from 2022 onward, the ratio reversed course, increasing to 0.38 in 2022 and 0.40 in 2023, before experiencing a pronounced rise to 0.70 in 2024. This trend reflects a substantial increase in capital investments relative to the depreciation expense, signifying an acceleration in asset investment and potentially a strategic focus on asset renewal or expansion.

Overall, the data depict a phase of restrained capital investment during 2021, followed by a recovery and significant uplift in 2024. Concurrently, a steady reduction in depreciation and amortization occurred, possibly indicating a shift in asset life cycles or accounting treatments. The sharp increase in the capital expenditures to depreciation ratio in the latest year underscores a notable shift toward increasing capital deployment relative to asset consumption, which could have implications for future production capacity or service capabilities within the segment.