The Boeing Company (BA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -2.99% | 9.93% | 5.30% | 4.84% | -9.78% |
| Operating profit margin | -16.10% | -0.99% | -5.28% | -4.66% | -21.95% |
| Pretax margin | -18.34% | -2.55% | -7.36% | -7.94% | -24.77% |
| Net profit margin | -17.77% | -2.86% | -7.41% | -6.75% | -20.42% |
The profitability ratios of The Boeing Company have shown fluctuations over the years based on the provided data. The gross profit margin, which indicates the percentage of revenue retained after deducting the cost of goods sold, increased from a negative position of -9.78% in December 2020 to 9.93% in December 2023, indicating an improvement in cost management and pricing strategies. However, it dipped to -2.99% by December 2024.
The operating profit margin, which reflects the company's ability to generate profit from its core operations, was negative in December 2020 at -21.95% but showed some recovery over the years before declining again to -16.10% by December 2024. This suggests mixed operational efficiency and cost control measures during the period.
The pretax margin, representing the company's profitability before tax expenses, also experienced improvements from -24.77% in December 2020 to -2.55% in December 2023. Nonetheless, it took a negative turn to -18.34% by December 2024, indicating increased tax burdens or lower pre-tax profitability.
Finally, the net profit margin, which indicates the company's profitability after all expenses, including taxes, was negative at -20.42% in December 2020 and gradually improved to -2.86% by December 2023. However, it decreased to -17.77% by December 2024, suggesting challenges in maintaining bottom-line profitability despite some operational improvements.
Overall, The Boeing Company's profitability ratios have shown a mix of improvements and setbacks over the years, reflecting the company's efforts in navigating through operational challenges and external factors impacting its financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -6.85% | -0.56% | -2.57% | -2.09% | -8.39% |
| Return on assets (ROA) | -7.56% | -1.62% | -3.60% | -3.03% | -7.80% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
The profitability ratios of The Boeing Company for the years 2020 to 2024 show a mixed performance:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for The Boeing Company deteriorated from -8.39% in 2020 to -2.57% in 2022, indicating that the company's operating income generated from its assets declined over this period. However, in 2023 and 2024, there was a slight improvement in Operating ROA to -0.56% and -6.85%, respectively.
2. Return on Assets (ROA):
- The ROA also exhibited a negative trend over the years, with values of -7.80%, -3.03%, -3.60%, -1.62%, and -7.56% for 2020 to 2024, respectively. This indicates that the company's overall profitability in relation to its total assets worsened during this period.
3. Return on Total Capital:
- Information regarding the Return on Total Capital is not available for the years 2020 to 2024, suggesting that the company's performance in generating returns from the total capital employed is not specified in the data.
4. Return on Equity (ROE):
- The data does not provide values for Return on Equity for the years 2020 to 2024, indicating that the profitability relative to the shareholders' equity is unknown.
In conclusion, The Boeing Company experienced challenges in maintaining profitability as reflected in its negative Operating ROA and ROA figures over the period analyzed. The lack of data on Return on Total Capital and Return on Equity limits a comprehensive assessment of the company's overall profitability and efficiency in utilizing capital and equity.