The Boeing Company (BA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.93% | 5.30% | 4.84% | -9.78% | 5.83% |
| Operating profit margin | -0.99% | -5.28% | -4.66% | -21.95% | -2.58% |
| Pretax margin | -2.55% | -7.36% | -7.94% | -24.77% | -2.95% |
| Net profit margin | -2.86% | -7.41% | -6.75% | -20.42% | -0.83% |
Boeing Co.'s profitability ratios have shown varied performance over the past five years. The gross profit margin has fluctuated, with a notable improvement in 2023 compared to the previous years, although it remains relatively low. The operating profit margin has also shown improvement in 2023, moving from negative margins in 2020 and 2021 to a slightly positive margin. Despite this improvement, the company still faces challenges in generating operating profits.
The pretax margin has similarly shown improvement in 2023, but it remains negative, indicating that the company's expenses are still impacting its ability to generate pre-tax profits. The net profit margin has followed a similar trend, moving from negative margins in 2020 and 2021 to a less negative margin in 2023. However, the company is still struggling to achieve positive net profits.
Overall, Boeing Co. has shown some signs of improvement in its profitability ratios in 2023, but the company still faces challenges in generating profits, particularly in its operating and net profit margins. Further analysis of the company's cost structure and revenue generation is recommended to understand the factors driving these ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.56% | -2.57% | -2.09% | -8.39% | -1.48% |
| Return on assets (ROA) | -1.62% | -3.60% | -3.03% | -7.80% | -0.48% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
The profitability ratios of Boeing Co. indicate a mixed performance over the last five years. The operating return on assets (Operating ROA) has fluctuated, with a notable improvement in 2023 compared to the previous two years, despite remaining in negative territory. This suggests that the company's operational efficiency and profitability from its assets have improved, albeit from a low base.
The return on assets (ROA) has also shown a similar pattern, with a significant improvement in 2023 compared to the previous two years. However, the ratio remained negative, indicating that the company's ability to generate profits from its assets has been limited.
The return on total capital has also exhibited a fluctuating trend, with a notable improvement in 2023 compared to the previous two years. Despite this improvement, the ratio remained negative, indicating that the company's ability to generate returns from its total capital has been inadequate.
It is worth noting that the return on equity (ROE) data is not available, which limits a comprehensive analysis of the company's profitability from the perspective of its equity shareholders. Overall, while there are signs of improvement in profitability ratios in 2023, Boeing Co. has struggled to generate satisfactory returns from its assets and capital in recent years.