The Boeing Company (BA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -773,000 | -3,547,000 | -2,902,000 | -12,767,000 | -1,975,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -17,233,000 | -15,883,000 | -14,999,000 | -18,316,000 | -8,617,000 |
| Return on total capital | — | — | — | — | — |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-773,000K ÷ ($—K + $-17,233,000K)
= —
Boeing Co.'s return on total capital has shown significant fluctuations in recent years. In 2023, the return on total capital improved to -2.34%, a marked improvement from the preceding year's -8.60%. However, the company's return on total capital was still negative, indicating that the company's capital investments did not generate a positive return during the year. In 2021, the return on total capital was -7.86%, showing a slight decrease from the previous year. The most notable decline was in 2020, where the return on total capital plummeted to -28.67%, reflecting a substantial decrease in the company's ability to generate profits from its total capital. The return on total capital also decreased in 2019 to -14.27%.
Overall, Boeing Co.'s return on total capital has been consistently negative over the past five years, suggesting that the company has struggled to generate positive returns from its total capital investments. This trend indicates that the company may not be utilizing its capital efficiently to generate profits. Further analysis of the company's operating performance and capital management strategies may be necessary to address this ongoing issue and improve its return on total capital.
Peer comparison
Dec 31, 2023