The Boeing Company (BA)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
The solvency ratios for Boeing Co. over the five-year period show the company's ability to meet its long-term obligations and the extent to which it relies on debt for its capital structure.
The debt-to-assets ratio decreased from 0.42 in 2022 to 0.38 in 2023. This suggests that Boeing's total assets continue to exceed its total debt obligations, indicating a relatively healthy financial position in terms of solvency.
The debt-to-capital ratio increased slightly from 1.39 in 2022 to 1.49 in 2023. This indicates that Boeing's proportion of debt to total capital increased, which may imply a higher reliance on debt financing for the company's operations and expansion.
It's worth mentioning that debt-to-equity and financial leverage ratios were not provided, thus limiting a comprehensive evaluation of Boeing's solvency from a leverage perspective.
In conclusion, Boeing Co.'s solvency ratios reflect a solid position in terms of total assets compared to total debt, but the increase in the debt-to-capital ratio suggests a growing reliance on debt financing. Further analysis, including other leverage ratios, would provide a more comprehensive understanding of Boeing's solvency position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -0.30 | -1.34 | -1.04 | -5.60 | -2.28 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a better capacity to cover interest expenses.
Boeing Co.'s interest coverage has experienced fluctuations over the past five years. The negative ratios in 2019, 2020, 2021, 2022, and 2023 raise concerns about the company's ability to cover its interest expenses with operating income. The negative ratios suggest that Boeing Co.'s operating income was insufficient to cover its interest expenses during these years.
The significant negative trend in the interest coverage ratio from 2019 to 2023 indicates a potential deterioration in the company's ability to meet its interest obligations. This may raise concerns about the company's financial health and the potential risk of default on its debt obligations.
It's important for investors and creditors to monitor Boeing Co.'s financial performance and consider the underlying reasons for the declining interest coverage ratio to assess the company's financial stability and ability to fulfill its debt commitments.